Understanding Your Credit
Many people get confused when it comes to their credit report. Few people know what information is gather to make up your report and your final score. Your credit report is made up of several parts, but basically it contains information about your past and present personal and financial situation.
Personal information: This is your basic information such as your name, address, (several if you have moved recently) social insurance number, telephone number, date of birth, and your current and previous employer(s) again if you have changed jobs in the last few years.
Credit information: This section is information related to any credit you may already have, like credit cards, store credit cards, a line of credit, a loan or a mortgage, car lease.
Banking information: This is information about the bank or credit union accounts you have, including a record of NSF (non-sufficient funds) or "bad" cheques you may have written.
Public records: A bankruptcy or a credit-related court judgment against you in a lawsuit would be in this section. Loans, where you have pledge an asset as collateral, like a car loan, would also appear in your credit report.
Collection information: This section will show if you ever had a debt that you could not pay which was referred to a collection agency for payment.
Consumer statement: This area allows you to put a statement on your report related to a problem with a creditor. For instance, if you have a dispute with your credit card company and they report you to the credit bureau it allows you to post your side of the story.
Credit report inquiries: This is a list of all of the people who have inquired about your credit: yourself, a lender, or any other authorized organization.
By taking the information from each of the catagories above, a very complicated mathemathical formula is applied to arrive at your credit score. But each of the above is not treated equally in determining your credit rating or as it is commonly called in the industry your Beacon score. Your payment history, outstanding credit balances and if you have been bankrupt are weighted much more heavily than if you personally enquired into your credit score. Credit cards with high limits and high balances affect you more than a high limit with a low balance.
Jamie Woodend
Sales Representative
Remax a-b Realty Ltd Brokerage
88 Wellington Street
Stratford, Ontario, N5A 2L2
519-273-2821 ext 229 Office
519-949-0345 Cell
New Mortgage Rules
New Mortgage Rules
On February 16, Minister of Finance Jim Flaherty, announced some changes to mortgage rules for Canada. Overall they are not bad news for the industry and may help to safeguard Canadians.
The government has implemented three major changes. The first is people seeking mortgages will have to qualify at the prevailing 5 year rate. Currently, you only need to qualify at the 3 year rate. This change will give a bit of a cushion to consumers when rates go up. This change applies to all borrowers and not just first timer buyers as some media has incorrectly reported.
The second change comes into play when an existing home-owner wants to refinance their home. Under the old system you could re-finance up to 95% using CHMC, now the new limit is 90%. It’s never a bad idea to maintain some equity in your home.
The final major change applies to investors purchasing non-owner-occupied rental properties. They will now need a 20% down payment. The previous limit was 95%. Now this does represent quite a change and may have an impact on the invest market, short-term, until investor works out how it applies to their own situation.
All changes were designed to protect consumers from getting themselves into financial trouble. While I’m never a big fan of government interfering in the market place these changes are reasonable.
These changes will take effect on April 19, 2010.
Jamie Woodend
Sales Representative
Remax a-b Realty Ltd Brokerage
88 Wellington Street
Stratford, Ontario, N5A 2L2
519-273-2821 ext 229 Office
519-949-0345 Cell
On February 16, Minister of Finance Jim Flaherty, announced some changes to mortgage rules for Canada. Overall they are not bad news for the industry and may help to safeguard Canadians.
The government has implemented three major changes. The first is people seeking mortgages will have to qualify at the prevailing 5 year rate. Currently, you only need to qualify at the 3 year rate. This change will give a bit of a cushion to consumers when rates go up. This change applies to all borrowers and not just first timer buyers as some media has incorrectly reported.
The second change comes into play when an existing home-owner wants to refinance their home. Under the old system you could re-finance up to 95% using CHMC, now the new limit is 90%. It’s never a bad idea to maintain some equity in your home.
The final major change applies to investors purchasing non-owner-occupied rental properties. They will now need a 20% down payment. The previous limit was 95%. Now this does represent quite a change and may have an impact on the invest market, short-term, until investor works out how it applies to their own situation.
All changes were designed to protect consumers from getting themselves into financial trouble. While I’m never a big fan of government interfering in the market place these changes are reasonable.
These changes will take effect on April 19, 2010.
Jamie Woodend
Sales Representative
Remax a-b Realty Ltd Brokerage
88 Wellington Street
Stratford, Ontario, N5A 2L2
519-273-2821 ext 229 Office
519-949-0345 Cell
New Financing Rules For Canada
Press Release form the Department of Finance:
The Honourable Jim Flaherty, Minister of Finance, today announced a number of measured steps to support the long-term stability of Canada's housing market and continue to encourage home ownership for Canadians.
"Canada's housing market is healthy, stable and supported by our country's solid economic fundamentals," said Minister Flaherty. "However, a key lesson of the global financial crisis is that early policy action can help prevent negative trends from developing."
The Government will therefore adjust the rules for government-backed insured mortgages as follows:
Require that all borrowers meet the standards for a five-year fixed rate mortgage even if they choose a mortgage with a lower interest rate and shorter term. This initiative will help Canadians prepare for higher interest rates in the future.
Lower the maximum amount Canadians can withdraw in refinancing their mortgages to 90 per cent from 95 per cent of the value of their homes. This will help ensure home ownership is a more effective way to save.
Require a minimum down payment of 20 per cent for government-backed mortgage insurance on non-owner-occupied properties purchased for speculation.
"There's no clear evidence of a housing bubble, but we're taking proactive, prudent and cautious steps today to help prevent one. Our Government is acting to help prevent Canadian households from getting overextended, and acting to help prevent some lenders from facilitating it," said Minister Flaherty. "If some lenders aren't willing to act themselves, we will act. These measures demonstrate the Government is committed to taking action when necessary to support the long-term stability of a sector that is so vital to our economy and the financial well-being of Canadian families."
These adjustments to the mortgage insurance guarantee framework are intended to come into force on April 19, 2010.
Jamie Woodend
Sales Representative
Remax a-b Realty Ltd Brokerage
88 Wellington Street
Stratford, Ontario, N5A 2L2
519-273-2821 ext 229 Office
519-949-0345 Cell
The Honourable Jim Flaherty, Minister of Finance, today announced a number of measured steps to support the long-term stability of Canada's housing market and continue to encourage home ownership for Canadians.
"Canada's housing market is healthy, stable and supported by our country's solid economic fundamentals," said Minister Flaherty. "However, a key lesson of the global financial crisis is that early policy action can help prevent negative trends from developing."
The Government will therefore adjust the rules for government-backed insured mortgages as follows:
Require that all borrowers meet the standards for a five-year fixed rate mortgage even if they choose a mortgage with a lower interest rate and shorter term. This initiative will help Canadians prepare for higher interest rates in the future.
Lower the maximum amount Canadians can withdraw in refinancing their mortgages to 90 per cent from 95 per cent of the value of their homes. This will help ensure home ownership is a more effective way to save.
Require a minimum down payment of 20 per cent for government-backed mortgage insurance on non-owner-occupied properties purchased for speculation.
"There's no clear evidence of a housing bubble, but we're taking proactive, prudent and cautious steps today to help prevent one. Our Government is acting to help prevent Canadian households from getting overextended, and acting to help prevent some lenders from facilitating it," said Minister Flaherty. "If some lenders aren't willing to act themselves, we will act. These measures demonstrate the Government is committed to taking action when necessary to support the long-term stability of a sector that is so vital to our economy and the financial well-being of Canadian families."
These adjustments to the mortgage insurance guarantee framework are intended to come into force on April 19, 2010.
Jamie Woodend
Sales Representative
Remax a-b Realty Ltd Brokerage
88 Wellington Street
Stratford, Ontario, N5A 2L2
519-273-2821 ext 229 Office
519-949-0345 Cell
Real Estate Forecast
The Canadian Real Estate Association has released their predictions for next couple of years. Keep in mind these stats are for all of Canada, your area will vary from these numbers.
2009:
195,840 units
Change: +8.2%
Average 2009 price: $318,366
Change: +5.3%
2010: 223,700 units
Change: +14.2%
Average 2010 price: $332,700
Change: +4.5%
Jamie Woodend
Sales Representative
Remax a-b Realty Ltd Brokerage
88 Wellington Street
Stratford, Ontario, N5A 2L2
519-273-2821 ext 229 Office
519-949-0345 Cell
2009:
195,840 units
Change: +8.2%
Average 2009 price: $318,366
Change: +5.3%
2010: 223,700 units
Change: +14.2%
Average 2010 price: $332,700
Change: +4.5%
Jamie Woodend
Sales Representative
Remax a-b Realty Ltd Brokerage
88 Wellington Street
Stratford, Ontario, N5A 2L2
519-273-2821 ext 229 Office
519-949-0345 Cell
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