Tuesday, September 30, 2008

Now more than ever you should be working with a licensed Mortgage Broker

Been following the markets and interest rates lately ? Boy, what a wild ride !

You definitely need a professional on your side to keep up with the changing stock values and the same goes for mortgage interest rates.

For example ... many of those nice variable rate mortgages that until recently were at prime minus .90% have disappeared and now look more like prime ... period. No discount. But did you know that there is still today a lender offering prime minus .60%* ? Your banker isn't going to tell you about that offer because 1) they don't have as much exposure to the market as a mortgage broker does and 2) because they only want your business, not necessarily what is best for you.

Your mortgage broker knows this and much more and that's who you should be depending on for the best and most up to date UNBIASED information on what is happening today and why, and what is likely to happen down the road.

We've set up a link on the right hand side of this blog site in our "Recommended Mortgage Links" for a mortgage brokerage web site where you'll get access to day to day new information and contact with an experienced mortgage professional. Why not take advantage of it and put another resource to work for you today ?

* rates subject to change by lender without notice and are available on approved credit

Friday, September 26, 2008

Beacon Scores Explained ... final words

Wrapping up our continuing series on the components that make up your Equifax Beacon Score, here are a few final tips.

Besides the obvious (bankruptcies, judgments, etc.) the top Beacon score killers are:

* Payments over 30-days late

* Maxing out credit cards (i.e. using over 75-80% of an available credit limit)

* Having only one kind of credit i.e. only credit cards with no instalment loans

If you have a lot of maxed out cards, bring them at least below 50% ofthe limit (below 30% is best). Your credit score can jump considerably in as little as a month.

The moral of this story is, know your own credit usage and check your credit report. One study suggests that over 70% of Canadians have mistakes on their credit report. Don't be afraid to check yours at Equifax Canada.

Look forward to seeing you again soon ... with all the action this week in the increasing interest rates and volatility in the markets, there's lots to write about!

Thursday, September 25, 2008

Beacon Scores Explained ... part 6

Today's post in our continuing series on the components that make up your Equifax Beacon Score is on "Credit Inquiries"

Score Weighting: 10%

Notes: Numerous credit applications in the past 12 months is a no-no. This is a big benefit of using the services of a mortgage broker, who pull your credit only once but can use it for multiple lenders.

Check back for our next posting in this continuing series - look forward to seeing you again soon.

Tuesday, September 23, 2008

Beacon Scores Explained ... part 5

Today's post in our continuing series on the components that make up your Equifax Beacon Score is on "Type of Credit"

Score Weighting: 10%

Notes: Bank loans, credit cards, and revolving credit accounts all impact you differently. All credit cards with no loans or vice versa is not necessarily the best mix for the highest possible score.

Check back for our next posting in this continuing series - look forward to seeing you again soon.

Saturday, September 20, 2008

Beacon Scores Explained ... part 4

Today's post in our continuing series on the components that make up your Equifax Beacon Score is on "Age of Accounts"

Score Weighting: 15%

Notes: The longer your accounts have been opened the better. You generally need at least three accounts over one year old.

Check back for our next posting in this continuing series - look forward to seeing you again soon.

Wednesday, September 17, 2008

Beacon Scores Explained ... part 3

Today's post in our continuing series on the components that make up your Equifax Beacon Score is on "Current Debts"

Score Weighting: 30%

Notes: Considers how much you currently owe (in absolute terms and compared with your credit limits), how many creditors you owe money to, and how much you could owe if you maxed all your available credit.

Check back for our next posting in this continuing series - look forward to seeing you again soon.

Saturday, September 13, 2008

Beacon Scores Explained ... part 2

Today's post in our continuing series on the components that make up your Equifax Beacon Score is on "Payment History"

Score Weighting: 35%

Notes: Factors in the recency of, and number of, payments over 30 days late, collections, judgments, and bankruptcies. A single 30-day late payment can drop your score 15-20 points.

Check back for our next post in this continuing series - look forward to seeing you again soon.

Thursday, September 11, 2008

Beacon Score Basics for Mortgage Hunters

Your Equifax Beacon Score tells lenders how much of a risk you are, and hence it determines how much you'll pay for your next mortgage. So it's important to know what affects it.
Beacon scores range from 300 to 900 (a perfect score). The averageCanadian adult has a Beacon near 720. Many people think you need to be in the 800's to get great mortgage rates. That isn't the case. Only 11% of Canadians rank above 800, and it's virtually unheard of to see a Beacon near 900. All you really need is 720 or above to get the best mortgage rates. Even 680+ can get you a great deal.
If your score is below 650, you're what lenders call a "B" client (i.e. there's issues with your credit that banks won't like). 1 out of 5 Canadians are in this boat, but don't despair!
Assuming you want to improve your credit (and who doesn't?) you should know how the Beacon formula is calculated.
Check back with us in a couple of days for a primer on the caclulation of your score.

Thursday, September 4, 2008

Bank of Canada holds the line on rates

HEATHER SCOFFIELD
Globe and Mail September 3, 2008

The Bank of Canada is keeping its key interest rate on hold,even though inflationary pressure has abated in Canada, and growth has slowed to a stop.
The central bank announced Wednesday that the overnight rate will remain at three per cent, and gave few hints about which direction its next move might be.
"The bank judges that the current level of the target for the overnight rate remains appropriately accommodative," the bank said.
Economists had widely expected the bank to keep rates unchanged, although some had also expected the bank to suggest that its next move would be a rate cut in order to stimulate Canada's flagging economy.
The bank omitted its traditional assessment of the risks facing the bank's forecast - an assessment that is usually closely watched to determine whether the bank is leaning in the direction of future rate cuts or hikes.
Instead, the bank's one-page statement focused on the reversal in commodity prices since the beginning of July. Then, oil was trading above $140 (U.S.) a barrel, and has since declined steeply to close on Tuesday at $109.71 - driven lower by sagging global demand, the bank said.
The slide has meant that the central bank's earlier expectations that the inflation rate would soar to above four per cent by the end of this year will not pan out, the statement said, although the bank said it expects commodity prices to remain volatile because of tight inventories.
At the same time, lower oil prices have also meant that the Canadian dollar is much weaker than a couple of months ago. Normally, a weaker Canadian dollar would boost Canadian exports, but this time, it comes just as the world economy is losing steam, the bank noted.
"The weaker global growth and the decline of the Canadian dollar will have opposing effects on the demand for Canadian goods and services,"the bank stated.
The Canadian dollar closed at 93.58 cents (U.S.) on Tuesday, after trading just below parity for months.
The bank did not express any concern for Canada's stagnant economy,which contracted in the first quarter and barely expanded in the second quarter. Domestic demand has softened, but remains fairly strong, the bank said.
"Overall, the level of economic activity is slightly lower than expected in July but still close to the economy's production capacity."Total inflation, which has surged above three per cent recently, has been affected by temporary factors and should move back to the bank's two per cent target by this time next year, the bank said. Still, the bank warned that the heightened inflation risk that gripped central bankers a couple of months ago and prompted the Bank of Canada to suddenly stop its aggressive rate cuts this summer still exists.
"Global inflationary pressures remain elevated, with potential implications for import prices and the dynamics of inflation in Canada,"the bank said.
Around the world, rising food and commodity prices have driven up inflation over the past few months, especially in emerging markets, but also in developed economies, albeit to a lesser extent.
In the United States, economic growth and the turbulence in global financial markets are unfolding as the bank expected, the statement said. The bank has projected 1.6 per cent growth in the United States this year, despite continuing turmoil in the financial sector and a collapse of the housing market.
Still, there's a risk that the negative feedback loop between the U.S.economy and tighter credit conditions will worsen, and hamper the expected revival of the U.S. economy in 2009, the bank suggested.
The Bank of Canada's next rate announcement is on Oct. 21 - a week after the widely-anticipated date of the federal election. With interest rates on hold, and the bank giving no obvious indication about its next move, Governor Mark Carney has likely removed himself as a factor in an election campaign that will no doubt be dominated by debate on how to manage the flagging economy.