Spring has Sprung and if you are thinking of purchasing a home this year there are a few things to keep in mind, more specifically Credit Killers. First let’s unpack what credit killers are. They’re things we do that have an impact on our credit or our ability to borrow money. Some of them are fairly obvious, while others may come as a surprise.
Credit Killer Number 1 – Unpaid credit cards
This one may seem obvious, but it can play a massive role in whether or not you qualify for a mortgage. If you currently owe too much consumer debts and have a history of racking up those cards and only making the minimum payments, lenders in this economy will be leery about lending you more money. My advice – pay down those cards and try to keep the amount of credit you owe to as few cards as possible.
Let’s maybe back up a bit. So we’ve all heard or have been hearing about interest rates for almost a year now. Is it surprising the Bank of Canada increased interest rates, probably not but that doesn’t mean there aren’t a few things you can do to set yourself up during the mortgage process and avoid any confusion around what’s your rate? and what is your rate going to be?
First things first, let’s break down what a “rate hold” is. This is the length of time a lender will lock in your quoted rate. Think of it as a guarantee of that rate for a set period (assuming you qualify for it). There are different time frames that lenders will hold rates and usually they range from 30, 45, 60, 90 or 120 days.
How does this help you, the homeowner? Well this can be beneficial for those who are in the process of searching for their dream home and want to ensure that the rate they are offered is not subject to any unexpected market changes.
I’m guessing you might be asking yourself, “how do I get my hands on a rate hold?” Well first, you are going to have to get pre-approved. This is when a couple of things happen. We will do a credit check, look at your income and your monthly operating expenses and see what you can afford. Then at this point we will be able to shop around and see what mortgage product best suits your needs. Once we have completed these steps we will talk about things like amortization (how long you want the loan for 15 years, 20 years?) and what term you want to commit to, like a 1 year, 3 year or 5 year term for example. Finally, we will see what lender is offering the best rate for your situation. That’s when we are going to lock in or get a rate hold. Here's the thing with rate holds. They only really apply for Fixed Rate mortgages since the nature of Variable Rates is to fluctuate.
So if you think you might be in the market for a new home this Spring or Summer, now is a great time to start getting your ducks in a row as they say and put a hold on the best rate possible.
Right now, we are living in post-pandemic times, and we are starting to see the effects that it had on industry and more specifically real estate. There were unprecedented housing spikes, bidding wars and homes were being bought before they could even hit the market. But now things are starting to settle down and people are starting to ask questions about purchasing homes at all. I get it. When interest rates were once less than 2% at times seeing the recent back-to-back interest rate hikes by the Bank of Canada things can feel unsettling.
Here’s what I know
People will always need to buy homes. Whether they are relocating, just getting into the market, upsizing, or downgrading, we all need a place to live. While there may not be the same sense of urgency as there was over the past year from buyers, homes are still selling and the days they are sitting on the market (DOM) are still at historic lows, meaning things are still moving.
House shopping can be stressful, especially if you find a house but maybe it doesn’t have a garage, or a developed basement. This doesn’t have to be a deal breaker because there is a mortgage product that is designed to help with these situations. A Purchase Plus Improvement mortgage allows you to borrow the cost of renovations (up to a certain percentage) and add it to the home price, rolling it all into one easy-to-manage mortgage payment.
Buying a home is a big step, arguably for most people, it is their largest investment. It doesn’t have to feel overwhelming, but there are some things you should avoid to make sure the mortgage process goes smoothly.
The beginning of the year is a great time to start reconsidering your mortgage. Maybe your mortgage is up for renewal this year, or maybe you want to capitalize on the low interest rates and refinance. Whatever the reason may be, there’s no time quite like the present.
Occasionally, situations in life happen when our current debt load might be too hard to manage. Maybe we have taken on one too many credit products, or maybe the cost of our current loans is just costing us too much money. This type of financial mismanagement can lead to that perpetual “treadmill” feeling of paying down debt, but not ever really getting ahead.
If there’s one guarantee, it’s that there are no guarantees in life. Things happen, and that’s okay and that doesn’t need to have a negative impact on your ability to purchase a home or continue to afford living in your current home. Even though we can’t completely prepare for life’s unexpected events, we can adapt and make sure that we find the right mortgage product to suit our current situations.
Shopping for a home, especially your first home can be very exciting. Visualizing how you’re going to decorate your new living room, or nights out on the deck can be very enticing. But before you get too far ahead of yourself, it’s important to understand how much you can afford so you don’t find yourself in a “house-poor” situation.
Buying a house, for most people, is the biggest investment they will ever make. This may seem daunting, or unattainable, depending on what phase of life you’re in - but it doesn’t have to be this way.
In this market, saving for a home is crucial. Homes are moving so quickly that if you don’t have your financing in place, you might end up missing the home of your dreams and we don’t want that.
The Home Buyers’ Plan (HBP) is a program which was created so people can withdraw from their Registered Retirement Savings Plans (RRSPs) to buy or build a qualifying home for yourself, or for a related person with a disability.
Most of us have heard the term “credit score” but what does this mean? Are there things that impact our credit score? Credit is important, but it helps to understand what goes into it. Here are the five major components that contribute to your credit score.
I understand that purchasing a property can be quite challenging as there are several complicated financial and legal matters to deal with. The process of home buying can be viewed as a stressful or laborious task. Still, with a little preparation, you can successfully navigate through your home buying procedure quickly and easily.
The housing and mortgage industry have gone through several changes over the years, and staying on top of the latest trends is crucial to obtaining homeownership. However, interpreting these industry changes by yourself can be a challenge if you’re not a part of the industry. For this reason, it’s vital to work with a mortgage broker who’s familiar with this sector, its laws and market conditions. They will provide you with the right advice based on your needs and determine the best product to suit your financial requirements.
I have been speaking with my real estate colleagues over the past few months and the common consensus is that 2020 started out optimistically. Most local realtors felt that Medicine Hat’s housing market was starting off strong. However, the first quarter could not have ended any further from that.
Are you considering refinancing your mortgage, but aren’t sure if it’s the right option for you? Usually, the main trigger for refinancing is to take advantage of current market rates. However, there’s so much more potential that refinancing has to offer. To help you see if this potential resonates with your requirements, mortgage specialist Kristi Sauter at Trilogy Mortgage Corporation has explained the various aspects of this mortgage product.
With so much uncertainty, there is a lot of “lingo” being thrown around right now and it can be very confusing. I want to try to clear a few things up.
Job uncertainty, economical conditions, a global health crisis. These are all things that we as a community are facing, some to more of an extent than others right now, but the consensus is things are hard and things are scary. Regarding your mortgage however, there are few options available that might provide some piece of mind.
Taking on a mortgage is a big financial responsibility. Besides repaying thousands of dollars, one also needs to cover the interest on the amount borrowed within a specified period. On account of these massive financial requirements, it’s quite common for people to want to reduce all expenses when obtaining a mortgage.
If you’re looking for a dedicated mortgage broker to help you find the most suitable mortgage solution, it’s essential to pick a reliable agent with high standards. After all, the end result will determine whether you get the home of your dreams. Therefore, it’s vital to choose a professional you can rely on. However, determining if a mortgage broker is dependable, efficient, and competent can be difficult.
