7 Dec

The importance of Credit

General

Posted by: Sarah Makhomet

As society becomes more & more dependent on credit, establishing and maintaining your credit continues to increase in importance.  More & more business are checking with the credit agencies before they decide to extend products or services to you.  The main areas this can be seen are with shelter, transportation, employment, self-employment and utilities.

 

Shelter – Most people are aware that having good credit is necessary to arrange mortgage financing.  While there are options for those with poor credit history, generally more down payment is required, and higher rates apply.  What many don’t know is your credit is also being used by many landlords prior to renting a unit.

Transportation – Unless you have $20,000 to $30,000 for a new car, it cannot be purchase without credit.

Employment – Many employers conduct background checks, which may include checking an applicant’s credit, prior to extending an offer of employment

Self-Employment – Most business start-ups require sizable amounts of money.  If you do not have savings, then credit, among other things are essential for business loans & financing.

Utilities – Utility companies such as phones, electricity & gas typically require a credit check prior to connecting their services.  If there have been past issues, they may request prepayment or a deposit up front.

 

Should you fall upon challenging times and you’re not able to main all of your obligations, it is important to be proactive and speak with your creditors.  Many may be able to extend payment holidays or decrease the minimum payments – particularly if you have a long history of good repayment.  If times do not improve and you’re not able to meet your obligations, speak with a credit counselor or trustee, as a consumer proposal or bankruptcy may be your best option.  When things begin to improve, it’s essential you begin to re-establish credit to show lenders despite past challenges, you know how to use credit properly.

2 Dec

10 tips to help you use your credit cards wisely

General

Posted by: Sarah Makhomet

To celebrate the launch of the Dominion Lending Centres line of credit cards, we would like to provide a list of 10 tips to help you use your credit cards wisely. The list provided is from the Financial Consumer Agency of Canada:

1 – Know what you’re getting into. Read the terms and conditions carefully, as you’re entering a legally binding contract.

2 – Continue to live within your means and budget. Having a credit card does not increase the amount of money you have.

3 – Your goal should be to pay off your balance in full by the due date of every month. If the balance is not paid in full, most credit cards will charge daily interest back to the date of purchase.

4 – If you find you are carrying a balance, and practically if the balance keeps increasing, stop using the credit card until you get your finances under control. Since interest is charged daily, try to pay it off as soon as possible, and check about other credit cards, lines of credit or other options that may be at lower interest rates.

5 – Avoid impulse buys, especially if don’t have the money available.

6 – If your credit card has a reward program, don’t increase your spending or buy things you don’t need just to get points.

7 – Avoid taking a cash advance on your credit card. Unlike regular purchases, there is not grace period and you are charged interest from the date of the advance until it is paid in full.

8 – Talk to financial professionals about your options if you need money for unexpected expenses. There may be options that will cost less than an advance on your credit card.

9 – Make regular payment to help build a good credit history.

10 – Make sure you are aware of all fees associated with your credit card.

Credit cards can be extremely useful and convenient, however, if you are not careful with how you use them, you can put yourself on a path to serious financial trouble.

28 Mar

Rates are going up!!! VIDEO: Prepayment clarity

General

Posted by: Sarah Makhomet

Already there are signs rates could be on the increase. The bond market — which fixed mortgage rates are based on — has been rising fast and the big banks say their most recent specials will come to an end this week. Pleae contact us to get your approvals and pre-approvals done asap.

This is a great Video on prepayment clarity for fixed rate mortgges done by our team:

http://www.mortgagebrokernews.ca/tv/the-big-story-prepayment-clarity/123579/

16 Mar

With bond rates rising, interest rates will soon follow

General

Posted by: Sarah Makhomet

Over the past week, bond rates have begun to rise.  This is typically a leading indicator to fixed rates starting to move.  If you are planning to purchase a new house, or refinance to take advantage of some of the great rates available, now is the time, as the super low fixed rates won’t be around much longer.  

Did you know you can talk to a mortgage professional to not only be pre-approved, but to also secure a rate that is good for up to 120 days.  So if you’re looking for a house, you can lock in a great rate today, and have time to find the home of your dreams.

13 Mar

2.99% with BMO read the fine print

General

Posted by: Sarah Makhomet

Before you sign the 2.99% with BMO, please read the fine print.

While 2.99% may be a great mortgage rate, rate is not the only factor you should be looking at.  Statistics show that many buyers break their mortgages within the first 4 years.  Some mortgages do not give the same flexibility when it comes to breaking your mortgage, either through refinancing or selling the property.  Also, pre-payment options are very important to some buyers.