SuperBrokers

When is the Last Time You Checked Your Credit History?

Find out how credit rating affects your mortgage rates and eligibility for most mortgage products.

Credit worthiness and the availability of money are always of interest to the mortgage shopper. We will discuss, in brief, just how important your credit rating is.

The old saying “Cash is King” rings true when it comes to purchasing power. When banks and mortgage companies talk about borrowing power, the adage changes. Now “Credit is King”.

Your credit history plays an integral part in the underwriting process of a mortgage application. Consider credit an indication of the risk level associated with the application. If credit is poor, risk goes up. If credit is good, the lender will view the application with much less hesitation. This often directly correlates to what mortgage rates they will offer.

Continue reading “When is the Last Time You Checked Your Credit History?”

Do You Know What Your Home Insurance Policy Covers?

Of over 1,500 Canadians questioned, nearly 25 per cent stated that they did not know what their insurance policy entitled them coverage to.

Your pipe suddenly bursts and causes significant water damage. A slow leak has damaged your underlay and caused need for other repairs. Do you know in which of these cases your home insurance would cover you?

According to the TD Insurance Uncovered Poll, conducted in September, 2010, of over 1,500 Canadians questioned, nearly 25 per cent stated that they did not know what their insurance policy entitled them coverage to.

Continue reading “Do You Know What Your Home Insurance Policy Covers?”

Credit Granting in Canada Can Foster Dependence

Paying the absolute minimum amount on your credit card debt will cost you thousands of dollars in accrued interest.

Interest rates on borrowed money are high. When you cannot afford to pay off your credit card, or line of credit, debt every month, you are contributing to generating huge revenue for the creditor. This is how credit works. The lender knows that the average person who doesn’t pay off their balance owing, in full, each month will hold a balance for many months and years to come. Even if, every month, you make a greater payment than the minimum required, you can still be paying down the same credit card debt for 12 years or more because you are only minimally contributing to the principal amount of the money owed. The majority of your payment is an interest charge. Making the minimum payment maintains the lender with a solid income stream, sometimes over and above the money they lent to you.

Continue reading “Credit Granting in Canada Can Foster Dependence”

Online Mortgage Calculators: Homebuyers Make Use

The online mortgage calculator does all the math for you, and is a great asset in determining your true budget for home buying.

Should you continue renting or buy property? The first-time homebuyer’s sometimes lengthy debate.

If you’re currently questioning whether a home purchase would benefit your current economical situation, then you should utilize the free, online tool that is proving its usefulness abundantly: the Canadian mortgage calculator.

The online mortgage calculator does all the math for you, and is a great asset in determining your true budget for home buying. Mortgage calculators can go beyond down payment, amortization length and interest rate. Many mortgage calculators factor in some of the items you may, in the zeal of home shopping, overlook.

Continue reading “Online Mortgage Calculators: Homebuyers Make Use”

Straw Borrowers Face Fraud Charges

Canadians that believe they can allow others to use their names and credit records to attain mortgages on a property are mistaken. Doing as much can result in jail time and large fines.

Accepting a payment, usually in the sum of $3,000 to $5,000, to allow someone to use your name and credit record to attain a mortgage on a property is fraud, and could result in jail time.

Regardless of how well one might feel they know a potential buyer, the truth of the matter is that these transactions are illegal. Participants could end up with heavy fines, a prison stay, and the saddling of a mortgage on a property they never intended to dwell in or own.

Continue reading “Straw Borrowers Face Fraud Charges”

Canada’s Mortgage Broker Count Plateaus

CAAMP says that there are nearly 20,000 Canadians holding mortgage broker and mortgage agent licenses in Canada. Of these 20,000 mortgage professionals, it is assumed that only 12,000 are currently active.

According to the Canadian Association of Accredited Mortgage Professionals (CAAMP), nearly 20,000 Canadians currently hold mortgage broker and/or mortgage agent licenses in Canada. However, it is assumed that only 12,000 of these are actually operating actively.

While Canada’s mortgage broker count saw numbers increase over the last three years it appears that these numbers have spiked and leveled out over the last year. Reasons being:

Continue reading “Canada’s Mortgage Broker Count Plateaus”

Rising Canadian Mortgage Balances could see Downward Shift

Amidst falling housing prices, Canadian mortgage balances have risen for nearly a third of Canadian home owners.

Data collected by Ipsos Reid’s Canadian Financial Monitor reveals that in the last 48 months, the average Canadian mortgage has seen a significant 36 per cent increase. While the same percentage of households possess mortgages now as they did four years ago, about one third of the populace, the average mortgage balance has risen since 2006.

The last four years also saw a marginal 3 per cent increase in mortgage holders opting for variable rates over fixed. Still, the vast majority of Canadians select fixed rates on their mortgage products; about 70 per cent.

Continue reading “Rising Canadian Mortgage Balances could see Downward Shift”

Making Pre-Payments Before you Discharge your Mortgage

Though rules vary from lender to lender, making a hefty pre-payment towards your mortgage before you discharge can yield positive effects.

Making a hefty pre-payment toward your mortgage before you pay it off early is a good idea. You may be able to lessen the pre-payment penalty you will be charged when you discharge, or pay-out the mortgage prior to its maturity date. However, lenders’ rules vary and you will have to investigate them in advance of planning your break strategy.

Some lenders will specify that pre-payments cannot be made within 30 days of the discharge date. Inquire with your lender to see how close to the discharge point you can make this payment, and then make it as early as possible. Ensure that this pre-payment goes through and that your balance has been adjusted before your payout statement is requested. You want to be sure that the balance on which your penalties will be calculated has your pre-payment deducted from it.

Does Low Rate Mean Low Quality?

Some mortgage brokers believe that professionals offering the lowest mortgage rates are sacrificing the value of professional guidance for rock bottom Canadian mortgage rates.

While some mortgage specialists feel that in questing to attain the lowest interest rate on your mortgage you will sacrifice the value of professional guidance, other brokers feel the opposite is true.

In today’s Internet-savvy consumer market, home purchasers are able to peruse and compare a gamut of rates and products online in a much shorter time frame than they would if they had to individually call each firm. They are often shopping purely for rate, not for advice. For that, they can look to a host of web-available informational tools, such as an online mortgage library, mortgage glossary, mortgage calculator or mortgage-focused blogs.

Continue reading “Does Low Rate Mean Low Quality?”

Private Mortgage Insurers Re-Surface in Canada

In recovery from the mid-2007 crisis faced by mortgage default insurance companies, private mortgage insurance has become popular once again.

Private Mortgage Insurers Canada

By mid-2007, mortgage default insurers had faced two turbulent years. They had watched their market shares plummet by a whopping 50 per cent and, in turn, the media coined them “unsustainable”. In the last year, however, these private mortgage insurers have seemingly regained their momentum. Genworth Canada has recently reported a 71 per cent increase in new insurance written, so far this year, and $85-million in profit.

Continue reading “Private Mortgage Insurers Re-Surface in Canada”