How a Landlord Reports to a Credit Bureau

How a Landlord Reports to a Credit Bureau Landlords need to screen tenants to limit the amount of trouble and financial strain they will encounter once a tenant takes up residence in their building. They have many factors to consider when screening—credit being a major aspect. Tenants are often uneasy when a landlord does a background check because they worry about their credit scores. While tenants can supply their potential landlords with credit data, landlords will also do a credit check by requesting information from credit bureaus. What Do Credit Bureaus Do? A credit bureau collects and updates credit information on individuals. This includes: repayment history the amount of credit available the amount of credit currently in use outstanding debt public record details (bankruptcy, foreclosure, repossession) Credit bureaus also have an individual’s personal information, such as their address, previous and current employers, and salary information. A credit bureau’s sources consist of a variety of businesses that provide consumer information, resulting in variations depending on the credit bureau you choose. Credit scores are sometimes erroneously calculated, for instance, when two individuals have similar personal information, but this can be disputed. Trust the Unbeatable Mortgage Team to help

2018-10-02T15:35:30+00:00

Mortgage Refinancing?

Credit cards, student loans and lines of credit cost borrowers like you and I a small fortune every year. That's because interest rates for these products are higher than secured loans, and they're compounded frequently making them extremely unaffordable for most. A little-known secret is a $2,000 credit card will take approximately 83 years to pay off if only the minimum payment is made. That's incredible, isn't it?! It's also very legal which is precisely the reason why banks are mailing everybody with a postal code a pre-approved Visa and MasterCard these days! What happens to people like you and I who use these cards regularly? What happens when we are not able to pay them off? We may find ourselves living pay cheque to pay cheque and without a long or short-term savings plan. If this sounds like you, the solution is easy! Refinancing is proven to be the gold-standard when it comes to debt consolidation. Extremely low-interest rates help you recover cash flow each month instead of using it to pay high interest only credit cards and other loans. The process of paying everything off is also quick and easy. Many people have graciously trusted me to refinance

2018-10-02T16:12:22+00:00

Things to Consider When Buying an Acreage or Country Property

HOW MANY ACRES ARE YOU PURCHASING? For conventional mortgages,  mortgage lenders will finance a certain number of acres, a house & a garage. The number of acres that they will consider can vary based on the property location and the norm for that area. The minimum down payment can also vary based on the size and location of the land. For example, a property that is close to a major urban area and under 10 acres would most likely be approved with 20% down payment. If it is a larger acreage 30+ acres and not within an hour of a major urban area, the minimum down payment will likely increase.   The lender may consider including value of out building if the product is changed to an Ag mortgage instead of residential mortgage and the have a higher interest rate. For high-ratio / CMHC insured mortgages with a minimum of 5% down, they will approve and insure the value of the house, garage and the `residential component` of the land. If the norm / average acreage size for the area is 20 acres, this is what they will approve in land value. If it is 160k – then this is

2018-10-02T16:20:53+00:00

Types of Mortgage Loans Explained

A home is the largest purchase you will ever make in your life. Understanding how mortgages work is crucial, as it allows you to discover the best lending options for you. There are numerous mortgage types, but to help introduce some lending jargon, we have listed the five most popular. Conventional Mortgages As the name itself indicates, this is one of the most popular mortgage options. A conventional mortgage requires you to put down a minimum down payment of 20%, with the remaining amount being covered by your loan. A down payment is usually funded by your own savings, but an alternative to fund a down payment is withdrawing money from your RRSPs. Example: If Mary wants to buy a $100,000 home, she will be required to submit a downpayment of at least $20,000. High Ratio Mortgages These mortgages require the borrower to place a down payment less than 20%. The minimum down payment is 5%, with the lending institution covering the remaining 95%. Because these mortgages are more high risk, they do require the purchase of mortgage default insurance, the cost of which is passed on to you as a lender. High ratio mortgages are capped at residential properties

2018-06-10T22:24:47+00:00

Why is it important to be pre-approved?

There is a huge difference in Pre-qualification and Pre-approval.  To get a pre-qualification (just as one of the big banks is offering in 60 seconds) only tells you the amount you could qualify for.  It doesn't know if you are qualified because no credit has been pulled, no income requirements reviewed and no down payment proof sent in.  This is why it is so important to work alongside a broker who will take the time review and provide guidance on the pre-approval process.  It is very important to have this in place when going and shopping the housing market to know what you qualify for. The other important reason is if you were pre-approved with a rate hold in place and the mortgage rules change you are grandfathered with those old rules for a time period.  For an example a family with a household income of $80,000 qualified for  new mortgage of $361,800.00 prior to May 7th when the Bank of Canada changed the benchmark qualifying rate from 5.14% to 5.34% now that same family only qualifies for a mortgage of $354,800.00.  This can make or break your chance to purchase the dream home you have your heart set on. 

2018-05-30T19:14:12+00:00

How much mortgage can you qualify for?

The first step in buying a house is determining your budget and what your allowable amount will be for qualifying. The amount you can qualify for depends on your credit history and your ratios of debt to income (TDS and GDS ratios.) The normal maximum TDS & GDS ratios are 42% and 39% respectively, but for those with exceptional credit, the mortgage qualification process only looks at the TDS ratio, and relaxes it to as much as 44%. GDS Ratio: Your Gross Debt Service Ratio is your monthly housing costs (mortgage, heating, half of condo fees, property taxes) divided by your income. TDS Ratio: Your Total Debt Service Ratio is all of your monthly obligations divided by your income. With ever changing mortgage rules the latest change is the stress test which has borrowers qualifying at the bench mark rate to ensure if rates increase they can handle the extra payment requirements. Today the bench mark rate is set at 5.34%. That can affect a client who would qualify for a mortgage for $310,000 at the current rate 3.24% with a $60,000 income. Now with the 5.34% stress test that same client only qualifies for $260,000. It is very important

2018-05-22T18:40:00+00:00

Understanding Your Credit Score

You’re looking to buy a new home and you understand the importance of a credit score, but you’re not completely sure what it is f. Credit refers to your ability to borrow money and can be considered your “reputation” in the lending world. According to CBC, 31% of Canadians don’t know how to attain a good credit rating and more than half have never checked their current score. Good credit history is essential in many large life events, such as renting an apartment, purchasing a car, or getting a mortgage, and is crucial to your overall financial health. Check Your Credit Score If you develop bad credit, banks and other financial institutions will view you as a risk. You may be wondering if there is a way to know your credit rating in advance. There are two types of credit checks: A Soft Credit Check. This is when a credit check is made as part of a background check or personal inquiry and will not impact your overall credit score. A Hard Credit Check. This occurs when a prospective lender makes an official request to view your credit in an effort to decide if they should lend to you. Hard

2018-05-01T18:58:01+00:00

What is a first time home buyer?

This is a question we get all the time so thought it would be a good idea to explain. The term "First Time Home Buyer" actually does not exist anymore in purchasing a property. It used to be a few years back that in order to go as low as 5% down payment on a home you could not have owned a property for the past 5 years and the property you are buying had to be your principal residence. That is no longer the case. The new rules are only that you must be going to live in the property as your home. You can own as many other properties as you like however as long as you are going to live in the property you are getting the mortgage on you can go as low as 5% down payment. There may be some exceptions to that due to the type of property you are buying so the best advice a can give is check with us at Unbeatable Mortgages ahead of time and we can advise. It is always best to work with an experienced and qualified Mortgage Broker, to get the best advise for your home purchase.

2018-05-01T15:34:16+00:00

Up for Renewal? Should you renew now or wait?

Should You Renew Now Or Wait? In every homeowner’s journey, the question of mortgage renewal will eventually come up. It seems to be a longstanding debate whether to take the chance to renew later and hope the rates go down, or go with certainty and renew now. In light of the current market, our experts have something to say on the matter: Sooner or Later Our experts highly recommend renewing sooner rather than later. It may be tempting to put off the inevitable for an extra year or so, but they advise against it. With interest rates steadily rising, people who have mortgages maturing in the next three years should seriously consider renewing early and locking in now. Avoid Rocketing Rates This may seem counterintuitive since the rate you might pay later may likely be lower than the rate you would pay to renew today. But waiting one to two years could be even worse. In a year from now, it is estimated that rates will be up on average another 1%. That would increase the standard five year fixed rate to 4.25%. Renewing today, would lock you in somewhere around 3.25% and would have no out of pocket expenses

2018-06-11T14:08:34+00:00

Why use a Mortgage Broker?

Mortgage Broker 1. Get independent advice on your financial options. As independent mortgage brokers and mortgage associates, we are here for you. Our goal is to help you successfully finance your home or property with the right mortgage product for you. We’ll start by getting to know you and your homeownership goals. We’ll draw from available mortgage products that match your needs, make a recommendation, and together decide on the right mortgage product for you. 2. Save time with one-stop shopping. It could take weeks for you to organize appointments with competing mortgage lenders — and we know you’d probably rather spend your time house-hunting! We work directly with dozens of lenders, and can quickly narrow down a list of lender products that suit your needs best. It makes comparison-shopping fast, easy, and convenient. 3. We negotiate on your behalf. As Mortgage Associates, we negotiate mortgages each and every day on behalf of Canadian homebuyers. You can count on our market knowledge to secure competitive rates and terms that benefit you. 4. More choice means more competitive rates. We have access to a network of major lenders in Canada, so your options are extensive, including traditional lenders, credit unions, trust

2018-06-11T14:09:10+00:00