Simple Ways To Raise Your Credit Score

If you’re like most people, the recession took a toll on your finances and probably your credit score. So how do you get it back to where it needs to be? While it usually takes seven years for any negatives marks to be removed from your credit report, there are a couple quick and simple ways to you can raise your credit score now. Here are a couple to keep in mind.

1. Keep paying things on time:
The most important thing to remember is to keep your credit report clean from here on out. Pay your bills on time. Make sure you aren’t over your limit on any of your credit cards. Keep the balances on your credit cards low. Keeping your finances clean is the best way to raise your score.

2. Don’t cancel any of your credit cards:
This may seem counterintuitive, but canceling credit cards actually lowers your credit score. Part of your credit score is based on how much credit you utilize (your credit utilization score), so the more credit you have available, the higher your credit score. If you cancel a credit card, you no longer have that credit available, which lowers your credit utilization score, which in turn lowers your credit score. Even if you’ve paid off a credit card, keep it open and gather up the extra points you get from having that extra line of credit. If you qualify, you can also apply for a new credit card to raise your credit utilization ratio, although don’t apply for more than one. Applying for too much credit at once can lower your score. Here is a good list of the best rewards credit cards that can help you save money and raise your credit score.

3. Open the lines of communication with your credit card lenders:
If a bunch of credit card debt is keeping your credit score down, talk with your credit card lenders to see if you can strike a deal to pay off that debt. Many lenders are open to making deals with you, since all they are really after is the money you owe. Just remember, if you do make a deal with a lender, ask them how they will be reporting it to the credit bureaus. They have two options: “Paying as agreed,” which won’t hurt your credit score, or “Not paying as agreed,” which could bring your credit score down. Make sure they are reporting it as “paying as agreed” before you agree to any deal.

4. Sign up for a secured credit card:
If your credit is so bad that you keep getting denied for a credit card or loan, try signing up for a secured credit card. Traditionally, you put down a “deposit” for a secured credit card that ends up being your credit limit, so it doesn’t matter how bad your credit is, secured credit cards are available for everyone. Just make sure to apply for a card that reports to all three credit bureaus, otherwise having the extra line of credit won’t affect your credit score.

5. Make sure there are no mistakes on your credit report:
Over 42 million people in this country have errors on their credit report, and 10 million of those have errors that affect their credit score. Make sure you are regularly checking your credit report to make sure there are no mistakes and that you haven’t been a victim of identity theft. Fixing simple mistakes on your credit report can be a quick way to boost your score. Each of the different credit bureau has instructions on their web sites on how to fix an error, or you can hire a credit repair service to do the work for you (as well as try other methods to raise your credit score.)

Keep in mind, the only guaranteed way to raise your credit score is to keep your report as clean as possible and wait until negative information expires from your credit report, which takes seven years (some bankruptcies take 10 years.) As new positive information appears and old negative information disappears, you’ll see your score start to rise.

Visit Dominion Lending Centres Mortgage Village to consult a mortgage professional.

Should brokers in these markets be worried?

Desjardins Group Economic Studies released a statement on Tuesday declaring the Canadian housing market is less affordable than the average affordability of the last 25 years, citing the average home prices across the country are eclipsing household income – due, in part, by a rush to buy prior to interest rate hikes.

Mortgage rates during the summer hurried buyers; many took action out of fear that mortgage rates would climb even higher,” the statement said. “Even if the coming months bring more increases; they won't be enough to trigger a significant dip in affordability.”

Most markets, however, are still affordable… outside Quebec and the Toronto, that is.
“Despite a decline in nearly all Ontario CMAs, most markets are still affordable. Toronto is an exception, where the average home price is $527,821, well above that observed in other agglomerations in the province,” the report stated. “The Desjardins Affordability Index is only slightly under the historical average in Calgary, despite relatively high home prices ($438,793 in the third quarter).”

And although housing prices may be lower in hot Quebec markets, they are still considered less affordable than their more expensive counterparts in BC; due to the average income disparity.

“Sherbrooke and Quebec City rank alongside Vancouver as some of the least affordable agglomerations in the country,” the report said. “Even though housing prices are much lower than on the west coast, incomes in these two CMAs are considerably lower, making home purchases more difficult.”

However, the Quebec-based financial services conglomerate reports its home province is experiencing a teeter-totter of sorts; with a lowering in prices in some markets being cancelled out by rising prices in others.

“Rising prices are losing steam in the Quebec City market while prices in Montreal are starting to edge down,” according to the report. “Prices continue to rise, however, for single-family homes, whose market is balanced, overall. Housing prices continued to climb in Gatineau, Sherbrooke, Saguenay and Trois-Rivières, affordability thus deteriorated in the third quarter.”

Visit Dominion Lending Centres Mortgage Village to consult a mortgage professional.

Discount Mortgages Dry Up As Canadian Borrowers Face Tough Test

The discount mortgages that stoked the Canadian housing boom are disappearing, increasing the likelihood of a correction in home values.

On Thursday, Royal Bank of Canada will hike its five-year fixed-rate mortgage to 3.89 per cent, one day after the Bank of Montreal raised its rate to 3.79 per cent. The other major lenders are all moving in the same direction.

The increases mean the cost of a new fixed-rate mortgage has climbed by more than a third in five months, signalling what could be the beginning of the end of ultra-cheap credit in Canada – and the start of fiscal pain for consumers who have overburdened themselves with debt.

“I think this is the real thing,” said Benjamin Tal, deputy chief economist at CIBC World Markets. “This is the end of extremely low interest rates. They’re simply unsustainable.”

So far, interest rates on other kinds of consumer debt are not on the rise, since they are often tied to the Bank of Canada’s benchmark rate, still sitting near a record low. Even so, the rise in mortgage rates will strain the ability of borrowers to juggle their debts.

“This is the beginning of a test for the mortgage market,” Mr. Tal said. “It’s a test of how Canadians are able to tolerate higher interest rates.”

And it is a test that came on swiftly and unexpectedly. Just five months ago, Finance Minister Jim Flaherty publicly scolded both BMO and Manulife Financial for offering mortgages he deemed irresponsibly cheap, advising against a “race to the bottom,” as mortgage rates sank as low as 2.89 per cent.

While the inevitable climb of mortgage rates has had false starts over the past couple of years, the recent hikes could be the first phase of a long-term trend.

“They’re going up every time we turn around,” said Paula Roberts, a Toronto mortgage broker. “It’s a shock to clients. Everybody just thinks they’re always going to stay low.”

As developing economies such as China falter, the United States has re-emerged as the likely engine of global economic growth. The improving U.S. outlook is already pushing up some lending rates, and should eventually reduce the need for central banks in the United States and Canada to hold down short-term interest rates to spur the economy. As long as the United States is making progress, mortgages here will probably continue to get more expensive.

The Canadian housing market is also still recoiling from regulatory changes Mr. Flaherty imposed in recent years in a deliberate attempt to engineer a “soft landing” for overpriced residential real estate. Last year, he reduced the maximum amortization period for a government-insured mortgage to 25 years from 30 years.

Speaking with reporters Wednesday outside a policy retreat in Wakefield, Que., Mr. Flaherty indicated that he sees no need at the moment for further intervention. “There are some bumps along the road in Toronto and Vancouver, in particular in the condo markets, but overall, I’m satisfied that the measures we’ve taken over the last several years have adequately calmed the markets.”

With multiple forces colluding on raising Canadian mortgage rates, the stubbornly strong housing market could finally relent. “Buying the same house will be more expensive this fall than this spring,” said Peter Routledge, an analyst at National Bank Financial.

An expected rise in rates could spur some to buy homes immediately to avoid the increased costs. Other prospective buyers will find they can no longer afford home ownership. “It’s going to limit the people that can buy,” Ms. Roberts said. “And it’s going to take longer for people to get into the market.”

Demand for homes could fall as a result. After that, the magnitude of the market’s reaction is difficult to anticipate. “Housing markets are prone to overreaction in both ways, the upside and the downside,” Mr. Routledge said. “The possibility that you get a vicious cycle goes up as rates go up.”

Visit Dominion Lending Centres Mortgage Village to consult a mortgage professional.

3 Helpful Tips On Debt Consolidation

If your debts have become uncontrollable and you are serious to get out of this financial instability, you must go for debt consolidation. With the help of debt consolidation all your multiple unmanageable debts will be consolidated into a single debt. After consolidating your debts, you also do not need to face the hassle of paying off your creditors separately. All your various creditors are paid off with a single monthly payment that you make to your consolidation company. Thus, there are various benefits of consolidating your debts. However, you must be aware that in order to have a successful debt consolidation, you need to know certain tactics. This article provides you with some tips on debt consolidation that may help you out.

Debt Consolidation Tips

Here are some tips on debt consolidation you need to know before you go for consolidating your debts with the help of a debt consolidation company.

• Reputable company - Before you choose a debt consolidation company, make sure to have a thorough research on the debt consolidation company that you want to go for. Research well online about the company and find out if it is a reputable one. All debt consolidation programs are not equal. Shop thoroughly and this in turn will help you get the best deal that suits your needs. Investigate not only whether they are offering you a low fees or not but also how long the company has been in the business, their experience and reputation.

• Non-profit companies - Non-profit organization may offer you much lower fees but you must keep in mind that non-profit doesn't mean that they are eager to help you out with your financial situation. Some also make fake claims to be a non-profit company in order to attract you. Thus, you need to be cautious about them.

• All debts do not need consolidation - All debts are not similar and may not even need consolidation. Thus, do not unnecessarily consolidate them. Analyze each debt separately. You must read the terms and conditions for each of your debt carefully. Estimate the APR and total cost of loan with help of an online loan amortization calculator. If you find out that your existing unsecured debt is cheaper than the consolidation loan that is being provided to you, it is better to avoid consolidating it.

Apart from these tips mentioned above, you must also figure out the total cost of your debt consolidation loan. Securing a low interest rate provides you with the main benefit of consolidating. Thus, make sure to utilize these tips on debt consolidation if you want to secure a successful consolidation.

Visit Dominion Lending Centres Mortgage Village to consult a mortgage professional.

Canadian House Hunters, Weigh Your Mortgage Options

Before we move into our new house this summer we have a really big decision to make. Do we go with a fixed or a variable rate? The answer to this question varies for everyone depending on their financial situation and tolerance for risk.

According to a popular study by Moshe Milevsky, choosing a variable rate has saved home owners money nearly 90 percent of the time. Sounds like an easy decision then, right? Not exactly.

This Time it’s Different
Interest rates are still at historic lows, with most experts predicting that rates will increase at least 1-2 percent over the next two years. Five-year fixed rates are currently under 4 percent, which is definitely an attractive rate to lock into and protect against the risk of future interest rate hikes.

But if the math favors choosing a variable rate mortgage over time, why are people so divided on this issue?

The vast majority of Canadians still choose the five-year fixed term. Proponents of fixed interest rates enjoy the peace of mind knowing that their payments won’t change and they also feel that we are in one of those rare situations where locking into a five-year term will save home owners money.

Since variable rates are always initially cheaper than five-year fixed mortgage rates, the decision ultimately comes down to saving money now vs. the potential of saving money in the future if interest rates go up.

What Options To Consider?
Let’s take a look at some real numbers to help make our decision. These are the current interest rate options for us, along with some pros and cons to consider:

Five-year variable interest rate = 2.20 percent (prime minus 0.80 percent) – As I mentioned, this is likely the smart choice since the variable rate has saved money nearly 90% of the time vs. a fixed rate. However, this time could very well be different, and if interest rates climb quickly back to historic levels this can become a losing proposition.
Five-year fixed interest rate = 3.89 percent – All things considered, a five-year fixed term under 4 percent is extremely low and would give us the peace of mind knowing that our payments wouldn’t increase even if interest rates soared. On the downside, by choosing this option we would be paying $260 more per month than if we went with the variable rate.
Three-year fixed interest rate = 3.54 percent – This option would give us the flexibility of not locking into a five-year term and also benefiting from a 0.35 percent discount over the five-year term. The monthly payments would still be $200 more than the payments on the variable rate.
1 year fixed interest rate = 2.64 percent – This option might be the best for us if we feel this is still a period of uncertainty. We would maintain our negotiating power after just one year and we also benefit from a 1.25 percent discount off the five-year fixed rate. But if interest rates were to rise quickly over the next 12 months we would still have to renew our mortgage at a higher rate when it came due.
As you can see, the five-year fixed rate has a built-in premium of 1.69 percent over the best variable interest rate. If the Bank of Canada decided to raise interest rates fairly quickly and aggressively over the next few years, the five-year fixed rate would likely be the better option.

Economic Factors at Work
The Bank of Canada meets eight times a year to make interest rate announcements and historically will move the rate by 25 or 50 basis points (0.25 or 0.50 percentage points) at a time. There is definitely the potential for interest rates to move between 2 – 3% in a single year.

The problem is, we are not very good at predicting where interest rates are headed. When it comes to monetary policy, there are a lot of moving parts to consider. It’s not as simple as just trying to contain inflation or trying to prevent a housing bubble.

Think of the soaring Canadian dollar. If interest rates were to rise sharply, the loonie would continue to climb vs. the American dollar, which puts increasing pressure on our manufacturing sector that relies heavily on exports.

Interest rates are indeed at historic lows but, with the outlook of the world economy still very uncertain, it is likely that the Bank of Canada will continue to move cautiously to avoid triggering another recession.

The Affordability Factor
Ultimately, whatever we decide to choose will carry some risk. Often the fixed vs. variable interest rate question is more about affordability than anything. Can your budget handle a 2 percent – 3 percent hike in interest rates? If not, then the fixed rate gives you that peace of mind to know that your payments won’t change for five years. If you can handle an increase in mortgage payments then you might find a great opportunity to save thousands of dollars in interest over the life of your mortgage by choosing the variable rate.

In our case, I think we are leaning toward the five-year variable rate, but with a twist. We will set our payments as if we were paying a 4.5 percent interest rate. This way we will be knocking years off of the overall amortization of our mortgage while saving thousands of dollars of interest. And we will still have the peace of mind knowing that we have built in a 2.3 percent cushion into our monthly payments in case interest rates rise.

Visit Dominion Lending Centres Mortgage Village to consult a mortgage professional.

Improve Your Home With These Practical Tips

Improving your home can be quite exciting! Maybe fix, replace or freshen-up something! However, if you do not have the right advice or information, this can be very stressful for all involved. This article contains a number of tips to help you and your household make a success of that home improvement project.

To improve the value of your home, you should think about remodeling it. A home that looks new can be sold for more. Adding new rooms or an outside patio can increase its value. Consider remodeling as a form of investment and make sure you know what most people want, before you start.

Put your used paint brushes and rollers in plastic and in the fridge! If you are going to continue using the same paint in the near future there is no reason to wash out your brushes and rollers. Just seal them in a plastic bag and put them in the refrigerator. They will be usable for weeks!

Clean out your home every few months by taking a look around and collecting items that you no longer need. It is a great feeling to update your home decor as well as giving unwanted items to charity. Take those things you no longer need and donate them to a local charity or orphanage. This will de- clutter your home and give you space for new items.

To see a return on your home improvement project, consider converting existing space into a new living environment for your family. Making an attic into a bedroom or finishing off your basement will earn you extra money when reselling your home because you are utilizing something that is already available to create a desirable feature.

Bugs tend to plague every household. A great way to ensure that you have it under control is by vacuuming and moving things around daily. Also, pinecones are actually a great remedy to keep bugs away. Collect pinecones and display them in a bowl to: repel the bugs, and add a chic touch to your decor.

If your room feels plain, add interest to it by choosing a heavily patterned rug. Stripes (horizontal or vertical), polka dots and swirls always make for a bold statement in your room. Don't be afraid to try new things, even if at first glance they don't match. Try small swatches of a design before you purchase the full product to make sure you like it.

So, home improvement has the potential to be a fun and exciting project! However, the process can be very difficult and stressful if you do not have the right advice and information. Use the tips found in this article to improve your home with ease!

Visit Dominion Lending Centres Mortgage Village to consult a mortgage professional.

In Need Of Home Mortgages Advice? Read On

Have you been out searching for a new home and wondering how you will be able to afford it? Maybe you aren't familiar with all the different types of home mortgages that can make homeownership affordable? No matter why you are here, anyone can use the tips in the following article to better their knowledge about home mortgages.

You will more than likely have to cover a down payment on your mortgage. Some mortgage providers use to approve applications without asking for a down payments but most firms now ask for a down payment. You should ask how much you will have to spend on your down payment before submitting your application.

Have the necessary documents ready. There are a few documents that you'll be expected to have when you come in for a home mortgage. You'll need to provide bank statements, income tax reports, W-2 statements, and at least two pay stubs. Having these at the ready will help make your meetings go much quicker.

Look for the lowest interest rate that you can get. The goal of the bank is to lock you in at the highest rate that they can. Do not be their next victim. Be sure to shop around so that you have a few options that you can pick from.

If you've gotten approved for a mortgage, don't make any other big purchases until after you've closed on your home. Typically your lender will pull your credit once again right before closing. If there are issues that crop up it could lead to problems with your closing. Be smart and curb spending until all is complete.

If you have been wondering about home mortgages and how it is possible to find the right one for your situation, then thankfully the tips that were presented here gave you a good start. Anyone can get a home of their dreams if they get the right mortgage for them. Use these tips wisely whenever you are in search of that dream home.

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Get Your Home Mortgage Questions Answered Here

Finding out that you could have gotten a much better mortgage than you currently have can be a very distasteful experience. You don't want to be that person. You want to go into a mortgage being well-informed. Therefore, keep reading so that you find out the information that you need to know.

Pay down your current debt and avoid gaining new debt while going through the mortgage loan process. When your consumer debt is low, you will qualify for a higher mortgage loan. High consumer debt could lead to a denial of your mortgage loan application. Carrying debt may also cost you a lot of money by increasing your mortgage rate.

Get a pre-approval letter for your mortgage loan. A pre-approved mortgage loan normally makes the entire process move along more smoothly. It also helps because you know how much you can afford to spend. Your pre-approval letter will also include the interest rate you will be paying so you will have a good idea what your monthly payment will be before you make an offer.

Gather your financial material before going to the bank to discuss a home mortgage. Showing up to the bank without your most recent W2, work payment checks, and other income documentation can lead to a very short first appointment. The lender will want to see all of this material, so having it handy can save you another trip to the bank.

New rules under the Home Affordable Refinance Program may allow you to apply for a new mortgage, even if you owe more than what your home is worth. Many homeowners tried unsuccessfully to refinance, until this new program was introduced. Look into it and see how it can benefit your situation, by leading to lower mortgage payments and a better credit position.

While you may have thought that finding a good mortgage company and loan is difficult, that really isn't the reality. You just have to know what you're doing, and with the advice you've read, you're sure to do just fine. Make sure you look at every aspect of getting a mortgage, and you will end up with the right one.

Visit Dominion Lending Centres Mortgage Village to consult a mortgage professional