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By admin, July 10, 2009 3:58 pm

Your credit score is used by most companies to see if you are a good credit risk or not. A credit score of over 680 is considered excellent.

What Can You Do to Improve Your Score?

1. Order a copy of your credit report from www.equifax.com or www.transunion.com to review it and make sure there are no errors.
2. Pay your bills on time.
3. If your credit history is questionable, open a few new accounts and use them responsibly.
4. Don’t open accounts and not use them. Having 6 or 7 of the same type of credit does not work in your favour.
5. Keep your balances low relative to your amount of credit available.
6. Pay off credit card debts!

What Does This Mean to Home Buyer’s?

The better your credit score the higher you buying power (income dependent as well). You will also qualify for the best mortgage products at the best rates.

To see what your credit score is and how much of a home you can afford, make sure to talk to your Real Estate Agent and Mortgage Broker before shopping for your Toronto Home.

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By admin, May 19, 2009 8:55 am

Well, this is a very good question that I often get asked by my clients.  The ideal down payment is what you personally can afford to make but there are some things to keep in mind.

The down payment is the amount of money you are paying up front for your home.  You can make a down payment for any amount but there a mortgage insurance premiums you  will have to pay depending on the lender and the down payment amount. The higher the percentage of the total house price/value that you borrow, the higher percentage you will pay in insurance premiums.

This chart which is available on the CMHC (Canadian Mortgage and Housing Corporation) Website shows the premiums charged:

An example of this is for a $100,000 mortgage with 5% down, the mortgage premium would be around $2,750.

It is very important to know what your mortgage payments will be before you look at homes, so you are comfortable and know all the details of how much home you can afford.

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By Lisa Collins, May 11, 2009 4:21 pm

Rate Are Subject to Change Without Notice. Some Conditions Apply.

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By Lisa Collins, February 15, 2009 5:14 pm

First of all you want to hire a Realtor to work with you who is an expert in this area.

Here are some items to keep in mind:

1.  What is your budget for a home?  Do you need a tenant to help pay for your mortgage?

2.  Find out how much rent is appropriate for the area.

3.  List the pros ($ for the mortgage) and cons (under 100% occupancy, being a landlord).

4. When you are looking for homes make sure they are legally conforming otherwise the lender will not want to mortgage property.

If you wish to look at some legally conforming 2 family homes give me a call at 416-518-8188.

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By Lisa Collins, September 10, 2008 9:01 pm

The first thing a bank or mortgage broker checks when determining if you qualify for a home loan is your credit score. Your credit score ultimately determines how much of a loan you will receive and the interest rate you will be approved for.

Essentially it boils down to Better Credit Score=More Mortgage=Lower Rate.

A credit score consists of many factors: your payment history, your credit card balances, bank accounts, including savings and checking accounts, and any other form of credit including all outstanding personal loans, mortgage loans, store credit cards, etc.

Excellent credit rating - No late payments, no collection notices, no bankruptcies or repossessions.

Good credit rating - May contain a late payment within the last two years.

Fair credit rating - More than one late payment. May or may not have a bankruptcy or repossession in the last two to three years.

Poor credit rating - Recent collection attempts, late payments within the last year, bankruptcies and/or repossessions within the last two to three years.

So work on improving your credit if you want to buy a home soon.