- 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.
- 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.
- 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.
- 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.
- 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).
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:
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!
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!
Worried about poor credit or an unstable income? You may qualify for a mortgage with a B Lender.
Many people don’t know this but there are three different lending tiers in Canada. These tiers are: A Lenders, B Lenders, and Private Lenders. There are several factors that come into play for which tier you could qualify for. Ideally, everyone could qualify with an A Lender but that is not the case. Thankfully, there are other options for people who may be in a difficult financial situation.
In 2017, some Canadians have extremely high debt loads. People are facing problems with credit, income, or bankruptcy. For some clients, trying to get mortgage approval through a B Lender is there best option. With a B Lender, you still need a credit score but clients can qualify even with poor credit or an unstable income.
B Lending institutions typically require a higher down payment, have higher mortgage rates, and there are more fees. Where an A Lender requires a minimum of 5% down on a purchase or refinance, a B Lender will usually require 20% to qualify. On the plus side, B Lenders have no insurance premiums because they are self-insured.
When a client is approved for a mortgage with a B Lender, it is usually a 1-3-year fixed term. This is because it is meant to be short-term. It gives the client a chance to rebuild their credit and financial situation in the hopes that they can be approved with an A Lender in the future.
When comparing a B side mortgage with a rate around 3.50%-5.00% it is often cheaper than the revolving debt payments on large lines of credit or credit cards closer to the 19.99%.
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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.
Buying a home can seem like a daunting task. Getting a mortgage doesn't have to be. As The Mortgage Associate at TMG Saskatoon, we are here to help make the whole process go as smooth as possible. Recently we closed a mortgage deal in just 9 business days! How? Here is a few things that help the process along:
1) Being pre-approved: when you decide you want to go house shopping, it's best to sit down beforehand with The Mortgage Associate at TMG Saskatoon and get a clear picture of what you are qualified for.
2)Documents: The most important parts to your mortgage! Having the required documents ready to go before hand can drastically reduce days waiting. Things to have on hand include: most recent Notice of Assessment, previous T4's, Bank Statements, Letter of Employment, and Paystubs. The sooner that The Mortgage Associate at TMG Saskatoon can take a look at and send in these documents, the better.
3) Communication: The Mortgage Associate at TMG Saskatoon is with you every step of the process and here to help and answer any questions that you may have. Communicating as quickly and efficiently as possible is key. We want to help get you into your new home as quick as possible.
While each mortgage situation is different, The Mortgage Associate at TMG Saskatoon is there every step along the way, finding you the best deal, answering any questions you may have, and getting you into your new home as quick as possible.
Article by The Canadian Press, The Star, February 15th, 2016
Homebuyers in Canada now face larger down payment requirements for properties over $500,000. The changes are intended to temper some of Canada's heated real estate markets. Here are five things to know about the new rules:
Cough up the cash: Homebuyers now have to put at least a down payment of 10 per cent on the portion of the price of a home over $500,000. For anyone buying a home for $700,000 - a common list price in Vancouver and Toronto - that means the minimum down payment will rise to $45,000 from $35,000. Any home under $500,000 still requires only a down payment of five per cent. Homes that cost more than $1 million still require a 20 per cent down payment.
Who's affected: Primarily those shopping for a home in Toronto and Vancouver. First time buyers in those cities will feel the pinch since they'll be required to put down bigger down payments to get into the market. Those selling their homes in order to size up, especially in cities with hot housing markets, likely won't feel the pain since they've built up equity in those properties.
Impact: The influence the new rules will have over house prices is expected to be small, experts say, given their narrow reach. When he announced the changes in December, Finance Minister Bill Morneau said they are expected to affect one per cent or less of the real estate market.
Sales Activity: Some analysts expected a surge in sales leading up to Monday's changes, saying they would lure homebuyers who wanted to avoid making the bigger down payments. Royal Lepage CEO Phil Soper says sales activity has been "boisterous" in Ontario, B.C. and Quebec in the first five weeks of this year, but he credits a relatively mild winter and low mortgage rates.
Past Measures: Four rounds of changes were made to tighten eligibility rules for new insurable loans between 2008 and 2012. Among them: the minimum down payment was increased to five per cent, the maximum amortization period was reduced to 25 years from 30 years and the maximum insurable house price was limited to below $1 million.
Scott Trainor is an award winning mortgage associate. He loves sports and enjoys educating and helping broker Saskatoon on the best mortgage deals.