Have you looked up your credit score recently?
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Most people would answer no, and that’s normal. Credit scores can be confusing, but I am here to clear some things up for you.

Firstly, a credit report is a “snapshot” of you and your credit history. The report includes personal information, employment information, credit information, information about judgments and collections, as well as a list of companies that have requested a credit report. Your credit score is a number from 300 to 900, which the lender uses to determine your risk factor. For example, a score of 680 means 680 people out of 900 are likely to repay their debt.
Now, you may be asking how the credit bureaus determine these scores and no, it’s not random. Your credit score is based on five factors.

1. Payment history makes up 35% of your credit score. This first factor, and the most important one, is how you pay your debts. Every time you make a payment or miss a payment, the credit bureau records that information on your credit file. The two credit bureaus, Equifax and TransUnion, receive information every month from creditors and scores fluctuate up or down depending on that information.
2. How much you owe accounts for 30% of the credit score. Lenders will look at how much is already outstanding to see if you can manage more debt. Another aspect of this part of your credit score reflects how much of your available credit limits you use on an ongoing basis. For example, you have two credit cards with a limit of $1000 each, for a total of $2000, which is referred to as the global limit. You owe $500 on one card and $800 on the other. That debt load is 65% of the global limit.  You decide to pay off the card with a $500 balance and close the account. That reduces the global limit to $1000 with an $800 balance. Now the percentage of debt is up to 80% and your credit score takes a hit. The ideal percentage between global limit and debt owed is 30% to 35% – the lower, the better. Therefore, paying off a portion of each can give you better results to your credit score.
3. 15% of your credit score is based on the length of credit history. The longer you’ve had credit, the better the picture a lender has of how you manage your debt. So, if you’re new to credit, your score may be high but your overall report will be weak. Lenders like to see two years of activity. 
4. 10% of the score is based on new credit applications. If you’re just starting to build your credit, there will be new applications. Lenders are looking for “credit shoppers” – those who frequently apply for new credit, which could signal financial troubles.
5. 10 % of the score is based on types of credit. Different types of credit show how you handle your money overall. Although this accounts for 10% of your score, it is the least important unless there’s not a lot of history. For example, if you have a deferred payment plan, it might mean you couldn’t save enough to purchase the item at the time. Or a consolidation loan might mean you couldn’t manage your money.

These are the basic principles each credit bureau will base your credit score off but it’s worth noting that depending on your credit lender they will interpret that score differently. Lenders factor in your income, your assets, how long you’ve been at your job and the reason applying for credit. Hopefully you are feeling a little more credit savvy after getting this insight.
Maintaining a good credit score can be crucial when it comes to applying for a mortgage. Everyday I help my clients overcome the confusing process of applying for a mortgage and understanding how their credit affects this process.

Stepping foot into your very own home is an amazing feeling. No more: rent payments, having to deal with a landlord, or shared spaces with strangers. Finally, you can have peace of mind in a space of your very own. For some of us this can sometimes seem like a distant, unachievable dream. The biggest question you’re probably asking is “Can I afford my own home?” That is when you should talk to Saskatoon Mortgage Associate, Scott Trainor.

Affordability. It’s a word that gets tossed around a lot when people talk about homeownership, but what does it really mean? Affordability is a term that’s both quantifiable (lending institutions use a formula) and a little bit subjective (lifestyle considerations factor in, too). With a little manipulation of your lifestyle considerations and the help of a Saskatoon Mortgage Associate,  like myself, Scott Trainor; we can make that unaffordable home, very affordable. You don’t need to be a millionaire to afford your half a million-dollar house, in fact you only need at least 5% of that half million. Therefore, you just have to save up $25,000; a much more manageable number to obtain.

Here are some simple ways to get you to that down payment saved up and get into that dream house of yours.

1) Work Hard, Rack up accomplishments, ask for a raise
2) Earn second income with a side gig or freelance work
3) Start a budget. Use budgeting apps to stay on-track with your financial goals
4) Save on gas and parking by walking, cycling or taking public transit
5) Put your gym membership on hold and exercise outdoors during the warmer months
6) Cut your cable or satellite TV
7) Ask your mobile provider for a better deal. Ditch your landline
8) Pack your lunch
9) Drink office coffee, not coffee shop coffee
10) Eat out less. Eat at home more
11) Buy groceries with a list and don’t shop hungry
12) Get a roommate
13) Downsize to a smaller rental
14) Move in with your parents
15) Rent in a cheaper part of town
16) Sell some unused items online
17) Choose activites with your friends that don’t cost a lot (Walks, free events, volunteer together)
18) Less luxury vacations, more staycations


There are twenty-one simple ways you can make minor adjustments to your lifestyle choices and make that unaffordable house, affordable. Call me, Scott Trainor, Saskatoon's Mortgage Associate, when that piggy bank is full and we can discuss taking the next steps to getting you into that home you’ve always dreamed of.

Currently the Canadians with the lowest Credit Scores are 25 years and younger, where as the group of Canadians with the highest scores are 65 and older. Struggling to repair your credit? The Mortgage Associate at TMG Saskatoon Scott Trainor has some great ways to repair and build your credit:

1. Pay your bills on time and in full – Even if you have had just one late or missed payment it may be recorded on your credit bureau. It is very important to pay your bills on time and in full if you can. Not all monthly bills will affect your credit score. Monthly payments such as utilities or rent will not show up on your credit BUT if they are sent to a debt collector they will.  Credit cards, line of credits, mortgages, vehicle loans, and cell phone payments will all show up on your credit bureau.
2. Do NOT go over your credit limit – being above your credit limit on credit cards or loans will drastically decrease your credit score. Also, if you aren’t over your limit but you are close to it, that can lower your credit score as well.  Prospective lenders want to know that you can pay off your debt, if your credit score is low or you have debts that are over their limits they may not take a chance on lending to you. 
3. Try to pay off debts as QUICKLY as possible – If you have money saved up, consider putting large sums on your debt to try to pay it off quickly. If this is not an option for you, make sure you are budgeting to put money into debt repayment. The quicker you pay debt off, the better your credit bureau will look.
4. Keep credit checks to a minimum - it is true that each time someone checks your credit score, it drops a little. With someone like a mortgage broker, your credit is checked once and then it can be sent to multiple lenders. If you try to go to multiple banks yourself for mortgage approval, each bank will want to check your credit. This can make a negative dent in your credit score. Be wise when it comes to how often your credit is being pulled.  
5. Credit History – Part of the reason why it is a younger generation who have lower credit scores is because they haven’t had credit for as long.  It is important to build positive credit history.  A lender is more likely to lend to you if you have some credit history (paying off a credit card, car loan, etc).

Refinancing your mortgage to get rid of high interest credit card debt
High interest debt is a fact of life for most Canadians. The amount of household debt hit record levels in 2016 and continues to grow in 2017. A CIBC study found that a third of Canadians took on more debt in 2016 because they could not keep up with their living expenses. Canadians are always looking for ways to pay off debt, refinancing with The Mortgage Associate at TMG Saskatoon, Scott Trainor, may be the answer.
Having a credit card is a great tool to build or improve your credit score. However, if you are unable to pay your monthly credit card statement in full you could damage your credit score and will pay high interest fees. It is important to pay off debt as quickly as possible, especially high interest debt.
Interest rates on credit cards are typically much higher than mortgage rates. A smart financial decision is to refinance and consolidate your debts within the loan that has the lowest interest rate, typically your mortgage. Homeowners build equity in their mortgage and can pull from that equity for many different reasons. One reason being, to pay off debt. To pull equity you need to refinance your mortgage. This is where The Mortgage Associate at TMG Saskatoon comes in to help you add your credit card debt to your mortgage balance. This would take your high interest credit card down to a zero balance, wiping out that extra monthly payment and save you a lot of money. Debt causes stress, refinance with The Mortgage Associate at TMG Saskatoon and pay off your debt!
Before you refinance to pay off debt, it is important to know how much your home is worth. If your home is worth less than what you bought it for, it is not a good idea to increase your mortgage balance. You do not want to end up owing more on your home than what it is worth.
Also remember that equity is not free money. When you add your debt to your mortgage, your mortgage balance will go up and you will have a higher mortgage payment.  You are saving money in the long run, but you still have the same amount of accumulated debt. The Mortgage Associate at TMG Saskatoon can help you decide if refinancing your mortgage is the best way for you to pay off debt.
Refinancing with The Mortgage Associate at TMG Saskatoon to pay off debt will also help your credit score. If you take your high interest credit card debt and move it to your mortgage, causing a 0 balance on your credit card, your credit score will rise. The credit bureau will see this as you handling your finances well.
If you are not financially wise, you could be right back where you started. If you refinance to consolidate your debt into your mortgage, make sure to try to keep that credit card debt low.
​Start to budget and look at why you had that high interest debt in the first place. Otherwise, you could find yourself with high interest debt once again AND a higher mortgage balance. Refinance with Scott Trainor – The Mortgage Associate at TMG Saskatoon to pay off your debt today!
 
Sources:
http://www.huffingtonpost.ca/douglas-hoyes/paying-down-debt_b_13912934.html
http://www.canadianmortgageco.com/refinance/consolidate-debt/
https://mortgages.ca/should-i-refinance-my-mortgage-to-pay-off-credit-cards/
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As The Mortgage Associate at TMG Saskatoon, it is my job to ensure you are in the best possible financial situation. One thing I have been doing with a lot of clients lately is doing an early renewal into a lower variable rate than their current fixed rate. By putting the clients penalty into the mortgage and keeping the payments the same, we are able to get the mortgage paid down almost two years quicker without increasing payments to the consumer. An example is below. Give The Mortgage Associate at TMG Saskatoon a call today and let me show you how to reduce your interest rate and amortization today!

Today, TD Bank raised their mortgage prime rate, which begs the question, what is a Prime Rate?

In Canada, the prime rate is a guideline interest rate used by banks on loans for their "prime" clients. The prime rate rises and falls with the Canadian economy. It is significantly by the overnight rate, which is set by the Bank of Canada.

The prime rate is especially important to variable rate mortgages, which rise and lower with the market. Typically mortgage customers get a discount off of the Prime Rate (Example: Prime being 2.70%, their rate is Prime -.40%, or 2.30%).

In today's society, we live in a time where people like to have nice things. Especially when it comes to homes. There is a natural want by most people to have a large home in a fantastic area with a big yard, paved driveway and picket fence. Others may just want a comfortable home that suits their needs. Owning your own home is a great accomplishment. But what if your credit doesn't fit the mainstream lender's "box"?

The Mortgage Associate at TMG Saskatoon, is the best answer to anyone looking to get into a home. Believe it or not, not everyone has amazing credit. When life happens, you may fall into late payments on credit cards and loans, have payments that have gone to collections, or even bankruptcy. A lot of banks and lenders would see this as not a right fit into the mainstream "box". The Mortgage Associate at TMG Saskatoon is willing to take each clients and look at them on a case to case basis to find the best options for you. Yes there is still criteria that everyone must meet, but The Mortgage Associate at TMG Saskatoon, can look at your past file as a whole and try to understand the why's. From there, it is easier to assess and come up with a "stepping-stone plan" to not only get you a mortgage, but also as to what needs to happen after the mortgage is in place. In a lot of cases, once your payments are up to date, you can start rebuilding credit damage in as little as two years.

When dealing with "B-lenders", you need to be prepared for higher than average rates (as lower credit is seen as more risky) and the lender will also probably ask for a larger downpayment on the home. However, The Mortgage Associate at TMG Saskatoon will look at any and all options to find you the lowest rate possible and get you on your way to owning your home and building up your credit. 

Bad credit doesn't have to be the end of the world. Book an appointment with The Mortgage Associate at TMG Saskatoon today to see what he can do for you. 

A current trend that has really progressed in the past few years is people deciding to purchase rental properties. The Mortgage Associate at TMG Saskatoonis the best person to talk to learn what options you have in this regard. In a lot of cases, owing a rental property can not only have the benefits of paying off the rental properties mortgage, but eventually your own and beyond as well. Here are a few things to consider.

1) Always talk to The Mortgage Associate at TMG Saskatoon first to get a true picture of your current financials. There are many options for mortgages and The Mortgage Associate at TMG Saskatoon can go over all of the options as well as recommend real estate agents that he works with who can help you out.

2) Look at the big, future picture- most properties only increase in value. This is especially true if you put some renovation work and upgrades into your rental property. The Mortgage Associate at TMG Saskatoon as well as his real estate agents can shed some light on how the market is expected to go as well as how the renovations you plan to do will increase the value of your property. 

3)Renovation and upgrades cost money- not only do you need to be prepared for the initial renovations and upgrades that you may do, but as well you need to expect that there will be future ones as well. Everyone wants to believe that their renters will take care of the home just as they would, but more often than not, this is just not the case. Things get outdated and need to be replaced, and accidents happen when you least expect them to.

4) Learn as much as you can about being a landlord- make sure you look into any laws that go along with renting and being a landlord. Have a solid lease agreement that you stick to, and screen all of your applicants. Good tenants are worth their weight in gold. 

As with most things, there are pros and cons of diving into owning a rental property. However, with help and advice from professionals like The Mortgage Associate at TMG Saskatoon, there is no reason that your new venture can't be successful and profitable. 

Buying your first home can be one of the most rewarding things you do. You've worked hard to be able to buy a place to call your own. In today's market, most people are drawn towards the brand new homes, or building their own. While this is great for many reasons, there is another rewarding option.....buying a fixer-upper and doing your own renovations.

This may seem daunting, but before you completely turn down the idea, read on. In many cities, there are fantastic old homes in established areas that are more than capable of being turned into your dream home. The other side to buying and renovating and older home is to do it as a flip....essentially to turn around and sell after the renovation. In Saskatoon, we are seeing rejuvenation and renovation of one of the oldest areas of town, Riversdale. The great thing about this area is that not only are people choosing character homes to renovate, but the city is turning this area into a go-to hotspot. It's a fantastic community with lots of local business' and accessibility to beautiful riverside views. It's a perfect area for anyone who likes to be surrounded by beautiful trees, a strong community and already well laid roots. Here are some things to consider:

1)Look at real estate in older areas:
In any city there are many established areas that are being rejuvenated and reborn into places that you would want to raise a family. Lots of the homes for sale will be older style, single family homes. While they may look a little rough around the edges, try and see past the cosmetic things you can fix. If you need any help from a real estate agent, The Mortgage Associate at TMG Saskatoon would happily recommend one of that fantastic professionals he works with.

2) Appreciate the history:
Older style houses have lots of amazing history. Whether its rounded doorways, original hardwood floors or an exposed brick wall, these are things that give the home fantastic character that you will not find easily in a new build. 

3)Know what you are approved for:
While there are costs to a renovation, there are also huge cost saving benefits. First off, many older homes are listed well below the cost of buying brand new. This is an advantage to get the best of both worlds....a character home in an area you love, with upgrades and renovations to really make it your own. The best way to know what you can afford is to sit down with The Mortgage Associate at TMG Saskatoon and go through what you are approved for. 

4)Learn about renovation:
There are lots of renovation companies that can make your renovation ideas come to life. Go to more than one, ask questions, and see what is available in your city. Another cost effective way to renovate is to do most of the renovations yourself. Many things such as changing flooring, painting, tiling, etc. can be learned easily so you can complete them yourself. Places like the Home Depot even hold free classes and seminars to learn such techniques. Coming up this weekend in Saskatoon is the Saskatchewan Homestyles Home and Renovation Show. It's a 4 day Show of over 400 booths of business' and professionals showcasing different ways and products to use to renovate your home. This is a great way to learn the costs of different types of renovations and to make connections with people you may want to hire.

As always, The Mortgage Associate at TMG Saskatoon is here to help at anytime along the way with any questions or recommendations you may have.