Mortgagesuccess's Blog

The fair and foul in the world of realestate

mortgagesuccess — Fri, 18 May 2012 15:29:05 +0000

A nice little article highlighting what is legal is not always fair.

Tougher rules not slowing us down.

mortgagesuccess — Thu, 10 May 2012 16:51:35 +0000

Hot market compensating for tougher refinancing rules, here is a good article.

“Canadian builders are showing little fear of a slowdown”

mortgagesuccess — Tue, 08 May 2012 19:43:15 +0000

The Canadian housing market start seems to be defying gravity, here is an article explaining that feeling in the air that the builders seem to be drawing off of.

Finding your dream neighbourhood

mortgagesuccess — Mon, 07 May 2012 16:38:36 +0000

Whether you’re looking to move up in the real estate market or downsize, finding an ideal neighbourhood can be difficult. Not only is affordability a prime concern, but you want to find an area that you’re going to enjoy living in as well. While only you truly know what you’re looking for, below are a few online resources that can help make your neighbourhood hunt a little easier:

1. Walkability

While it’s not important to everyone, a lot of people are looking for neighbourhoods where they can park their car in the driveway and get a bit of exercise when they’re not at work. If you’d like to see how walkable a prospective neighbourhood is, check out www.walkscore.com. It will map out the closest grocery stores, coffee shops, restaurants, parks and other amenities and give your potential future home a score out of 100.

2. The Starbucks Effect

While you may not necessarily like its coffee, a Starbucks can say a lot about your prospective neighbourhood. This article outlines the effects the coffee shop chain has on property values, and the type of neighbours it attracts.

http://www.remaxprestige.com/blog/the-starbucks-effect-how-real-estate-prices-are-influenced-by-starbucks/

3. Schools

If you have school-aged children, chances are you want to move to an area that not only has a school nearby, but a good school. The Fraser Institute puts together an annual report of school rankings that can prove to be very helpful when finding a good one. Check it out here: http://www.compareschoolrankings.org/

Not all Variable rate mortgages are created equal

mortgagesuccess — Wed, 02 May 2012 15:53:18 +0000

Choosing the mortgage that’s right for you involves a little bit more than merely deciding whether you’re a fixed or variable type of person - particularly if you opt for a variable rate mortgage.

It’s not enough to choose a variable rate mortgage based solely on rate – you also have to consider what type of variable rate you’d prefer. Below is a breakdown of the most common types:

1. Adjustable Rate Mortgage

An Adjustable Rate Mortgage, otherwise known as an ARM, will see your mortgage payments adjust with every Bank of Canada announcement that causes the Prime rate to increase or decrease. Some lenders will change your mortgage payment immediately, while others – like ING Direct – will evaluate it every three months.

2. Standard Variable Rate Mortgage

A Standard VRM will allow you to maintain the same monthly payment throughout your mortgage term, but the percentage of that payment that goes towards interest will change according to the Bank of Canada’s prime rate.

3. Capped Variable Rate Mortgage

A Capped VRM comes with a built-in limit as to how high your mortgage payment can go within a given term (usually the cap is equivalent to the 5-year fixed rate at the time of signing). While your interest rate may change on a monthly basis, your payment remains the same. If interest rates rise above the capped rate, your mortgage payment won’t change.

Each type of variable rate mortgage comes with its list of pros and cons, so it’s important to ask a lot of questions and make sure you understand each product before signing on the dotted line. Remember, we’re here to help – so ask away!

“Alberta to remain the fastest growing province”

mortgagesuccess — Tue, 01 May 2012 18:03:42 +0000

Here is an article on Alberta leading the rise in economic strength in Canada. The growth in our energy sector is finally trickling down to the rest of Alberta’s economic areas.

There is no place like home.

mortgagesuccess — Fri, 27 Apr 2012 19:30:30 +0000

Today,do you want a tax free asset that will grow in worth? Everyone wants to know why making that big step of buying a house is a good idea. Here is an awesome article from the journal, that might just push you to buying or at least make you smile.

What can you do to improve your credit?

mortgagesuccess — Wed, 25 Apr 2012 16:10:18 +0000

Keeping the last two articles in mind, below are the most important things
you can do to improve your credit score:
Pay your bills on time. If possible, set up automatic payments for all
of your regular bills. Many credit card companies also have a service that
allows you to automatically pay your minimum balance every month.
Don’t max out your credit cards. If you have a big purchase to make,
consider applying for a lower–interest line of credit, or home equity line of
credit (if you already own a home).
Choose your credit wisely. While it may be tempting to receive a new
iPod – or 100,000 AirMiles – for applying for a new credit card, it’s not worth
the havoc unnecessary credit can wreak on your credit score. Try to limit all
new credit applications to those you genuinely need.
Keep an eye on your credit profile. Make sure there are no erroneous
charges – and no fraudsters taking over your identity. Both Equifax
(www.equifax.ca) and TransUnion (www.TransUnion.ca) allow you to order
your credit profile for free on an annual basis. It’s wise to order one from
each company, since they feature different information.
Be patient. Unfortunately, it can take a while to see the fruits of your
credit–improving labours. If you follow the above steps on a consistent basis,
however, you’ll be qualifying for that stellar mortgage rate in no time!

How Is My Credit Score calculated?

mortgagesuccess — Tue, 24 Apr 2012 15:59:13 +0000

While each credit bureau is different, both rely on similar algorithms to determine
an individual score. Below is an approximate breakdown:

Payment History (35%): Your credit score will be higher if you pay your bills
on time, as opposed to submit late payments – or worse – not pay outstanding
debts at all. If you have a poor payment history – meaning, you’ve missed a
payment, declared bankruptcy or had a debt that went into collections – this
will negatively affect your credit score. The more time that passes since you’ve
paid the outstanding debt or declared bankruptcy, however, the less heavily this
delinquency will be weighed.

Current Debt (30%): Just because you’ve been approved for a $10,000 credit
limit doesn’t mean you should use it all! The more credit you use, the lower your
score will drop. TransUnion recommends keeping your credit card balance below
50% of your allotted limit, and ideally around 30%. With this in mind, if you’re
someone who relies on a credit card a lot, it might be better to implement some
spending discipline rather than asking your credit card company to drop that
$10,000 limit to $500.

Length of Credit History (15%): The longer you’ve been proving yourself
as a reliable borrower, the higher your score will be. Someone without a lengthy
track record of paying back debts is likely to have a reduced credit score.

New Credit (10%): If you have a lot of companies viewing your credit report
in a short period of time – whether they’re landlords, credit card applications or
mortgage brokers – a red flag will go off at the credit bureau, and consequently
lower your score. Regardless of what the reasons are, the bureaus see that
activity as a sign of desperation – meaning, you’re in financial trouble and
looking for a way out. Try to avoid applying for every credit card application
that comes your way.

Types of Credit (10%): Your credit score is partly calculated based on the
types of credit and loans you have – such as credit cards, retail accounts,
installment loans, mortgages, and consumer

What is a credit score?

mortgagesuccess — Mon, 23 Apr 2012 23:21:00 +0000

1. What is a Credit Score?
Canada’s two credit bureaus, Equifax and TransUnion, are independent companies
that make their money from collecting information about your credit history.
Other businesses that utilize the services of these bureaus – meaning, they report
to and collect information from them – include virtually every credit card company,
loan entity (student or otherwise), car leasing company, utility company, collection
agencies and pretty much anyone else you pay money to on a regular basis.
The bureaus monitor the activity on a regular basis (typically monthly) and assign
a ‘credit score’ to you. This number ranges from 300 to 900, although anything in
the 700s is considered to be good. To qualify for credit, you typically don’t want to
be lower than 620, and definitely not lower than 600.
In general, the higher your score, the lower the probability that you will become
delinquent on credit extended to you. And while many lenders use bureau scores
to help them make lending decisions, each lender will base its decision on more
than just the score.