Credit scores can range from 300 to 900 and are used by lenders to determine what kind of a risk you are likely to be as a borrower. Your score is based on several attributes -
Payment History:
The single biggest factor in your credit score is having a timely bill payment history. Recent late payments are factored more heavily than old ones so start today and never let a bill get past due.
Amounts Owed:
Keeping your accounts near their maximum limit can signal that you don’t manage credit responsibly, and that you may have trouble making payments in the future.
Length of Credit History:
The longer you have had credit in good standing, the better. Keep your oldest cards; that good history will help you, and don’t regularly take out new credit accounts.
Pursuit of New Credit:
Opening several credit accounts in a short period of time is a risk factor. How many enquiries done on your behalf can also have an effect on your score.
Types of Credit:
A healthy mix of credit i.e. car loan, mortgage and credit card is more positive than a concentration of debt in only credit cards.
With an excellent credit score (750 and over), lenders will give you a quick mortgage approval at the best possible rates. This score says you are reliable and responsible with debt. At a lower score (below 620), you likely won’t get the best mortgage rates, you may require a larger downpayment, there could be extra fees, and you may even find it difficult to qualify.
Your credit score can change from month to month, which means you can boost your score relatively quickly with the right credit behaviours. We can review your situation and discuss how your score will be viewed by lenders and, if necessary, outline your best options for credit improvement. If you want to get a mortgage while you work on bettering your score, we can also advise how that may be possible.
Showing posts with label credit problems. Show all posts
Showing posts with label credit problems. Show all posts
Monday, November 17, 2014
Wednesday, December 18, 2013
Latest Market & Mortgage News for December 18, 2013
- TSX -4.32 to 13,180.09 (CP) as traders hoped that a two-day meeting of the Federal Reserve will end uncertainty over what the U.S. central bank may decide to do about cutting back on a key stimulus program.
- Dow -9.31 to 15,875.26 as traders weighed the odds of the Fed starting to taper bond purchases, which have been at US$85 billion a month. This third episode of quantitative easing by the Fed has underpinned a strong rally in many stock markets while keeping long-term rates low. "I think people are more divided about (the outcome of) this Fed meeting than any single Fed meeting in a very long time," said Colin Cieszynski, market analyst at CMC Markets Canada.
- Dollar -.21 to 94.25 US as the greenback strengthened ahead of a Fed announcement expected mid-afternoon Wednesday.
- Oil -.26 to $97.22 US
- Gold -$14.30 to $1,230.10 US
Canadian 5 year bond yields markets -.03 to 1.80. The spread (obtained by subtracting the bond yield above from the industry average 5 yr rate published mortgage rate of 3.59) is close to the profit range at 1.79. If the increase in bond yield continues upward, the spread shrinks, which could prompt interest rates to rise. The range for investor desired profitability is currently a bit lower in the region of 1.80 and 2.00.
Privatizing CMHC would weaken banks, leave economy vulnerable: TD’s Ed Clark
John Greenwood | Financial Post: 12/12/13
Any move by Ottawa to privatize or even tinker with the Canada Mortgage and Housing Corporation would weaken the Canadian banking system and put the economy at risk, the chief executive of Toronto-Dominion Bank said in an interview Thursday.
The Canadian banks sailed through the financial crisis, emerging mostly unscathed because their massive holdings of residential mortgages stayed liquid, unaffected by the freeze-up that afflicted fixed income assets around the world because they were guaranteed by the CMHC.
CMHC insurance “provided us with stability in both earnings and liquidity that differentiated us [from banks in the rest of the world],” Ed Clark said in an interview.
So any government effort to reform the Crown corporation — as Jim Flaherty, the Finance Minister, has mused several times — risks “taking away the very things that made Canadian banks [so resilient]“, he said.
Mr. Clark said one of the lessons of the crisis that began in 2008 was how crucial a stable banking system is to the health of the economy.
“So if you take that away, [how do] you explain to people that the unemployment rate in the next downturn will be a lot higher because you decided to dismantle what made Canadian banks different,” he said.
Despite a spate of warnings about the precarious state of Canadian real estate — most recently Deutsche Bank released a report saying that Canadian housing market is the most overvalued in the world — Mr. Clark said he doesn’t believe things have gotten out of control.
“For the moment, I don’t think we are in a bubble,” he said, adding that at the same time prices can’t keep going up for ever.
The challenge for bankers and policymakers such as Mr. Flaherty is to figure out the difference between “rapidly expanding prices” and a bubble. For the time being, he said, both groups need to keep close watch on the market.
“If a year from now housing prices start to take off again, then I’ll be advocating to say we’ll tighten [the rules around mortgage lending] again.”
Since 2008 Mr. Flaherty has moved to tighten mortgage rules several times. He’s also put the CMHC under tighter regulatory oversight — it’s now directly overseen by Canada’s financial regulator, the Office of the Superintendent of Financial Institutions.
Still, even after all those steps housing prices continue to rise along with household debt, which has been escalating in tandem with real estate prices and now sits at record levels. Recent statistics suggest that while the rate of growth has slowed down over the last year, average consumer debt continues to rise — a worrisome trend that has left this country vulnerable a potential economic shock like a sharp rise in interest rates.
Mr. Clark acknowledged that if a meltdown were to take place, the banks would be protected thanks to the government mortgage insurance. But he noted that it would be difficult for TD to thrive if the Canadian economy ends up on its back. Trying to differentiate between a strong real estate market with rapidly rising prices and a bubble is a very tough thing to do, “so I err on the side of let’s slow this thing down and I think we have slowed it down.
Thursday, July 18, 2013
Mortgage Market Commentary - July 18, 2013
As at close of markets Wednesday
Canadian 5 year bond yields markets -.04 to 1.66
The spread (obtained by subtracting the bond yield above from the industry average 5 yr rate published mortgage rate of 3.59) is finally back again within the profit range at 1.93. If this remains steady we may see some good rate specials again! If the increase in bond yield continues upward, the spread shrinks, which could prompt interest rates to rise. The range for investor desired profitability is currently in the region of 1.90 and 2.10
http://www.marketwatch.com/investing/bond/tmbmkca-05y?countryCode=bx
How many of you have refinanced a clients’ credit cards only to see them back again 2 years later with balances run back up again? With higher ltvs for refinances now, perhaps it’s time to just get rid of them?
Could You Live Without a Credit Card?
By Daniel Bortz | U.S.News & World Report LP – Fri, 31 May, 2013
Giulia Rozzi's unhealthy relationship with credit cards started in college. Surrounded by friends with frivolous spending habits, Rozzi says she adopted the mindset of "spend now and deal with the consequences later." That approach continued after graduation, when she moved to Los Angeles to pursue comedy and acting. Her cash flow was unsteady, but that didn't stop her from using a credit card to bankroll a wealth of discretionary expenditures. A well-deserved pedicure? A fancy dress? A last-minute trip to Las Vegas with friends? All it took was one swipe of the credit card
.
She hit a low point in 2004, having racked up $5,000 in credit card debt. Her parents agreed to pay it off - on the condition it wouldn't happen again. "The agreement with them was I would never get another credit card, and of course, I did," Rozzi says. Years later, when she found herself drowning in $20,000 in credit card debt, she decided it was time to give up plastic for good.
Rozzi is among a number of consumers who choose to live without credit cards. Some 29 percent of 1,004 respondents ages 18 years old or older to a 2010 poll by CreditCards.com said they did not own a credit card - around a 10 percent jump from the number of respondents who reported having no credit cards in 2009. For many people, saying goodbye to credit cards helps them stay out of debt and take more control of their finances.
Without thousands of dollars of credit at her disposal, Rozzi no longer makes purchases with money she doesn't have. Today she pays for most items with cash and spends less. She says cash transactions make her think twice before making a purchase - significantly reducing her propensity for impulse purchases. A 2008 study led by Priya Raghubir, a professor of marketing at New York University, reinforced evidence from earlier studies that consumers tend to spend more money when paying with credit cards than they do when paying with cash.
Credit cards also alter a consumer's mindset when contemplating a purchase. A 2012 study published in the Journal of Consumer Research found shoppers who charge an item to their credit card focus on the benefits of the purchase, while those who pay cash focus on the cost.
Consequently, many consumers who give up credit cards begin to pay closer attention to where their money is going and develop the discipline to spend less, says Gail Cunningham, vice president of membership and public relations at the National Foundation for Credit Counseling, a network of accredited and certified credit-counseling agencies. "Credit cards distance you from your hard-earned money," Cunningham says. "We've found people who decide to live on a cash basis end up saving around 20 percent of their previous spending - and they do it without feeling deprived."
However, those who go the credit card-free route may still encounter problems, including difficulties when booking hotels and renting vehicles. Such transactions typically require at least a debit card. "People who live in a cash-only world are going to find themselves marginalized and inconvenienced," says Ben Woolsey, director of marketing and consumer research at CreditCards.com.
Debit vs. credit card protections. Many credit experts, including Woolsey, advise credit card-free consumers to use a debit card that's attached to a checking account so they can still make purchases without having to carry wads of cash.
But debit cards don't offer the same protections as credit cards. The Fair Credit Bill Act covers consumers from fraudulent credit card charges. Consumers must submit a written dispute (some offer electronic submission) within 60 days after receiving an account statement that contains billing errors. The creditor will then investigate whether or not the charges are from a third party and decide if the money will be reimbursed to the consumer. The FCBA doesn't cover debit card users, though. Instead, such consumers are liable for up to $50 of unauthorized charges if they report a lost or stolen debit card within two business days. If the report is filed after two business days, the cardholder is liable up to $500. And if unauthorized transactions aren't reported within 60 days, the cardholder could be liable to pay the full amount.
Some banks, however, offer enhanced liability protection to debit card users, says Bruce McClary, a credit counselor at ClearPoint Credit Counseling Solutions, headquartered in Richmond, Va. For example, a creditor may not hold customers liable for fraudulent charges on their debit card if the dispute is reported within the first two business days. With financial institutions offering competitive features, McClary says consumers should shop before deciding where to open a debit card.
McClary recommends consumers regularly contribute to a savings account so they have an emergency fund in place if their debit card is compromised.
The disadvantages of closing all credit cards. Despite making it easier for some to climb out of debt, there are significant drawbacks to living without a credit card. With fewer avenues to build good credit, consumers may run into trouble when applying for a car loan or a home mortgage.
Woolsey of CreditCards.com says people with little or no credit history look riskier to lenders and may be offered car loans and home mortgages at higher interest rates - or may not qualify at all. "It's almost like having no employment history or having been out of work for a long time," Woolsey says, adding that a lack of credit history impairs your credibility as a trustworthy consumer. Closing a credit card account with no balance won't ding your credit score, but the card history - including any missed payments - will remain on your credit report for about 10 years.
Moreover, those who don't use credit cards are still targeted by identity thieves. Fraudsters can use the consumer's sensitive information to open a credit card in the victim's name, for example, and accumulate debt on the card. Therefore, credit card-free consumers should check their credit report for errors. Americans are entitled to one free credit report a year at AnnualCreditReport.com. "If you take your eyes off your credit report for too long, you could be missing things that are challenging to repair," McClary says
.
One woman's transition from credit to debit. JoAnneh Nagler of Burlingame, Calif., says making the transition from credit to debit-only living was challenging, especially since it was hard for her to admit she was in financial trouble. "I was around $80,000 in credit card debt before I woke up," says Nagler, author of "The Debt-Free Spending Plan." Her husband also had difficulty using credit cards responsibly; the couple divorced, partly due to their problems with credit card debt.
"I had fallen on my face so hard, so many times, that when I gave up my credit cards I was scared to do it because I didn't know how I was going to live without them, but there's never a good time to quit," Nagler says. Fourteen years after the divorce, Nagler and her husband remarried. The couple signed a financial agreement - and had it notarized - swearing off all use of credit cards.
Looking back on how she abused credit, Nagler says, "Other people have parents they can go to for large chunks of change, but that wasn't a possibility for me, so I would say I used credit cards as my sugar daddy."
The bottom line. Credit card-free living can have its ups and downs, but it enables many consumers to be more conscious of their spending, put more earnings into savings and stay out of trouble with creditors.
- TSX +51.88 to 12,568.77 (CP) with the focus mainly on central banks, as the Bank of Canada left its key rate unchanged and the Federal Reserve offered reassurances on economic stimulus.
- DOW +18.67 to 15,470.52 amid remarks from Federal Reserve chairman Ben Bernanke that the Fed could slow the pace of a key element of economic stimulus later this year if the economy strengthens. But Bernanke cautioned that the Fed wants to see substantial progress in the job market before scaling back its US$85 billion in monthly bond purchases. Data showed U.S. builders started work on fewer homes and apartments in June. However, the slowdown wasn’t enough to suggest the housing recovery is faltering.
- Dollar -.45c to 96.02c US as the Bank of Canada kept its key rate unchanged at one per cent and indicated it is in no rush to raise rates.
- Oil +$.48 to $106.48
- Gold -$12.90 to $1,277.50US
Canadian 5 year bond yields markets -.04 to 1.66
The spread (obtained by subtracting the bond yield above from the industry average 5 yr rate published mortgage rate of 3.59) is finally back again within the profit range at 1.93. If this remains steady we may see some good rate specials again! If the increase in bond yield continues upward, the spread shrinks, which could prompt interest rates to rise. The range for investor desired profitability is currently in the region of 1.90 and 2.10
http://www.marketwatch.com/investing/bond/tmbmkca-05y?countryCode=bx
How many of you have refinanced a clients’ credit cards only to see them back again 2 years later with balances run back up again? With higher ltvs for refinances now, perhaps it’s time to just get rid of them?
Could You Live Without a Credit Card?
By Daniel Bortz | U.S.News & World Report LP – Fri, 31 May, 2013
Giulia Rozzi's unhealthy relationship with credit cards started in college. Surrounded by friends with frivolous spending habits, Rozzi says she adopted the mindset of "spend now and deal with the consequences later." That approach continued after graduation, when she moved to Los Angeles to pursue comedy and acting. Her cash flow was unsteady, but that didn't stop her from using a credit card to bankroll a wealth of discretionary expenditures. A well-deserved pedicure? A fancy dress? A last-minute trip to Las Vegas with friends? All it took was one swipe of the credit card
.
She hit a low point in 2004, having racked up $5,000 in credit card debt. Her parents agreed to pay it off - on the condition it wouldn't happen again. "The agreement with them was I would never get another credit card, and of course, I did," Rozzi says. Years later, when she found herself drowning in $20,000 in credit card debt, she decided it was time to give up plastic for good.
Rozzi is among a number of consumers who choose to live without credit cards. Some 29 percent of 1,004 respondents ages 18 years old or older to a 2010 poll by CreditCards.com said they did not own a credit card - around a 10 percent jump from the number of respondents who reported having no credit cards in 2009. For many people, saying goodbye to credit cards helps them stay out of debt and take more control of their finances.
Without thousands of dollars of credit at her disposal, Rozzi no longer makes purchases with money she doesn't have. Today she pays for most items with cash and spends less. She says cash transactions make her think twice before making a purchase - significantly reducing her propensity for impulse purchases. A 2008 study led by Priya Raghubir, a professor of marketing at New York University, reinforced evidence from earlier studies that consumers tend to spend more money when paying with credit cards than they do when paying with cash.
Credit cards also alter a consumer's mindset when contemplating a purchase. A 2012 study published in the Journal of Consumer Research found shoppers who charge an item to their credit card focus on the benefits of the purchase, while those who pay cash focus on the cost.
Consequently, many consumers who give up credit cards begin to pay closer attention to where their money is going and develop the discipline to spend less, says Gail Cunningham, vice president of membership and public relations at the National Foundation for Credit Counseling, a network of accredited and certified credit-counseling agencies. "Credit cards distance you from your hard-earned money," Cunningham says. "We've found people who decide to live on a cash basis end up saving around 20 percent of their previous spending - and they do it without feeling deprived."
However, those who go the credit card-free route may still encounter problems, including difficulties when booking hotels and renting vehicles. Such transactions typically require at least a debit card. "People who live in a cash-only world are going to find themselves marginalized and inconvenienced," says Ben Woolsey, director of marketing and consumer research at CreditCards.com.
Debit vs. credit card protections. Many credit experts, including Woolsey, advise credit card-free consumers to use a debit card that's attached to a checking account so they can still make purchases without having to carry wads of cash.
But debit cards don't offer the same protections as credit cards. The Fair Credit Bill Act covers consumers from fraudulent credit card charges. Consumers must submit a written dispute (some offer electronic submission) within 60 days after receiving an account statement that contains billing errors. The creditor will then investigate whether or not the charges are from a third party and decide if the money will be reimbursed to the consumer. The FCBA doesn't cover debit card users, though. Instead, such consumers are liable for up to $50 of unauthorized charges if they report a lost or stolen debit card within two business days. If the report is filed after two business days, the cardholder is liable up to $500. And if unauthorized transactions aren't reported within 60 days, the cardholder could be liable to pay the full amount.
Some banks, however, offer enhanced liability protection to debit card users, says Bruce McClary, a credit counselor at ClearPoint Credit Counseling Solutions, headquartered in Richmond, Va. For example, a creditor may not hold customers liable for fraudulent charges on their debit card if the dispute is reported within the first two business days. With financial institutions offering competitive features, McClary says consumers should shop before deciding where to open a debit card.
McClary recommends consumers regularly contribute to a savings account so they have an emergency fund in place if their debit card is compromised.
The disadvantages of closing all credit cards. Despite making it easier for some to climb out of debt, there are significant drawbacks to living without a credit card. With fewer avenues to build good credit, consumers may run into trouble when applying for a car loan or a home mortgage.
Woolsey of CreditCards.com says people with little or no credit history look riskier to lenders and may be offered car loans and home mortgages at higher interest rates - or may not qualify at all. "It's almost like having no employment history or having been out of work for a long time," Woolsey says, adding that a lack of credit history impairs your credibility as a trustworthy consumer. Closing a credit card account with no balance won't ding your credit score, but the card history - including any missed payments - will remain on your credit report for about 10 years.
Moreover, those who don't use credit cards are still targeted by identity thieves. Fraudsters can use the consumer's sensitive information to open a credit card in the victim's name, for example, and accumulate debt on the card. Therefore, credit card-free consumers should check their credit report for errors. Americans are entitled to one free credit report a year at AnnualCreditReport.com. "If you take your eyes off your credit report for too long, you could be missing things that are challenging to repair," McClary says
.
One woman's transition from credit to debit. JoAnneh Nagler of Burlingame, Calif., says making the transition from credit to debit-only living was challenging, especially since it was hard for her to admit she was in financial trouble. "I was around $80,000 in credit card debt before I woke up," says Nagler, author of "The Debt-Free Spending Plan." Her husband also had difficulty using credit cards responsibly; the couple divorced, partly due to their problems with credit card debt.
"I had fallen on my face so hard, so many times, that when I gave up my credit cards I was scared to do it because I didn't know how I was going to live without them, but there's never a good time to quit," Nagler says. Fourteen years after the divorce, Nagler and her husband remarried. The couple signed a financial agreement - and had it notarized - swearing off all use of credit cards.
Looking back on how she abused credit, Nagler says, "Other people have parents they can go to for large chunks of change, but that wasn't a possibility for me, so I would say I used credit cards as my sugar daddy."
The bottom line. Credit card-free living can have its ups and downs, but it enables many consumers to be more conscious of their spending, put more earnings into savings and stay out of trouble with creditors.
Monday, July 6, 2009
Credit Problems?
For individuals who have had credit problems, shopping for a mortgage on one’s own has traditionally been a challenge. It used to be that those with “bruised credit” could only obtain a mortgage with a significant down payment along with double digit interest rates and significant fees.
Today’s mortgage market provides many opportunities for borrowers with a poor credit history, and an Invis mortgage professional can advise you on a wide range of home finance options now available. He or she has access to lenders who offer mortgages to people with credit issues.
These mortgage products allow borrowers to get access to funds today and after a period of time when their credit issues are behind them, they can move to the prime lenders with better rates and terms.
An MortgageDirect2u Invis mortgage professional will look at your individual circumstances and find financing that fits your needs. Access your options today.
Today’s mortgage market provides many opportunities for borrowers with a poor credit history, and an Invis mortgage professional can advise you on a wide range of home finance options now available. He or she has access to lenders who offer mortgages to people with credit issues.
These mortgage products allow borrowers to get access to funds today and after a period of time when their credit issues are behind them, they can move to the prime lenders with better rates and terms.
An MortgageDirect2u Invis mortgage professional will look at your individual circumstances and find financing that fits your needs. Access your options today.
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