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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, June 16, 2009 8:35 pm

Historically, it has been better in the long term to have a variable rate mortgage but right now mortgage rates are at an all time low.  So the usual logic need not apply right now.

Think about it this way, when mortgage rates were at 8 and 9 percent, a variable mortgage of 6% was a better deal.  But now the fixed rates are lower than those variable rates were in the past (3.59%).  These rates have been creeping up at a couple of the major banks is the last few weeks but more than likely in 5 years rates will be a lot higher than 3.59%.

Right now the Bank of Canada has lowered it’s lending rate to the low that it is in an effort to stimulate the economy, once the economy is stimulated, prices will rise (i.e. inflation).  To curb inflation in the future the Bank of Canada will raise it’s rate and with it mortgage rates will rise.  Now is a great time to time to lock in to hedge against this future rise in interest rates.

If you need a mortgage broker to help you get the best rates, let me know and I can send you their contact information.

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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, March 30, 2009 4:53 pm

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

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By Lisa Collins, March 16, 2009 9:00 pm

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

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By Lisa Collins, March 9, 2009 9:41 pm

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

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By Lisa Collins, March 2, 2009 12:16 pm

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

Visit www.mortgageproduction.ca to apply.