When you apply for a first or second mortgage, or a debt consolidation loan, one of the first things that a mortgage broker or the bank checks, is your credit history and credit score. The credit scoring system was devised by credit scoring agencies to help mortgage and loans lenders to quickly evaluate a potential borrower’s credit worthiness. The system was found to accurately predict financial risk over time. Credit scoring is used by mortgage companies, banks, insurers, landlords, employers, and utility companies to evaluate your credit behaviour.

The basic credit scoring formula takes into account several factors from your credit profile. The impact of each factor fluctuates based your credit resume:

• Payment history – A good record of on-time monthly payments will help boost your credit score.
• Outstanding debt – Balances above 50 percent of your credit limits will harm your credit. Aim for balances under 30 percent.
• Credit account history – An established credit history makes you a less risky borrower. Think twice before closing old accounts before a loan application.
• Recent inquiries – When a lender or business checks your credit, it causes a hard inquiry to your credit file. Apply for new credit in moderation.
• Types of credit – A healthy credit profile has a balanced mix of credit accounts and loans.

When you are preparing for a major purchase make sure you check your profile and score first. Looking at your profile and score a few months before your loan application will help you get a complete picture of your credit health and give you time to make any needed changes to your credit.

Worried if your credit score makes the grade? If your credit score is above 680 you will likely qualify for a best rate mortgage loan. Under 600, you may have trouble receiving credit at affordable interest rates.

If your credit score is a little low, pay your bills on time, reduce your debt, remove inaccuracies and avoid new inquiries for a few months to give it a boost.

Get answers to your credit questions in the Credit Learning Centre on our Axcess Mortgage and Loans Financing website. We’ve got the information and resources you need to take charge of your credit today.

CONTACT US FOR A FREE EVALUATION >> or call 905.308.8063

The report, compiled by Will Dunning, CAAMP’s chief economist indicates that that “sizeable minority” of Canadian mortgage holders would be unable to make their payments if interest rates were to increase as little as 1 per cent.

The trade group said that the majority of Canadians could pay more on their mortgages if necessary. But there are some who would run into trouble with even a small move in rates.

Fixed rate mortgages – which are locked in for a specific time period and are generally seen as a more conservative to variable rates which could rapidly increase – accounted for 60 per cent of the mortgages written by the association’s lenders in the last year.

Today the fixed interest rates continue to be at record low and look to be a better option than the variable rates offered. In addition, broker channel lender still offers 40 year amortization for conventional mortgages (under 80% of property value), on approved credit.  This gives borrowers more monthly cash flow for rising fuel costs or grocery bills. This is a best mortgage solution to consolidate expensive credit card debt into one low monthly payment. This mortgage can also be used for purchase if you have 20% down payment or to refinance if you have equity in your home but need money for renovations, to purchase a car or any emergency expenses.

Brokers actually appear to have grown market share during this year’s hyper-competitive rate wars. “Homeowners with mortgages were asked ‘when you took out the mortgage that you currently have on your residence, which of the following mortgage professionals did you consult with?’” writes CAAMP Chief Economist Will Dunning in the November report, drawing on a online survey of 2,000 Canadians, conducted late last month. “The 2011 data show a small shift towards mortgage brokers (to 27 per cent versus 25 per cent a year earlier).”

CONTACT US for a FREE evaluation of your mortgage options >>

Marie Copeland Hryczynski, FSU

Axcess Mortgage and Loans Financing is a Mortgage Broker in Hamilton, Ontario. We get clients best interest rates, fast mortgage money and approvals or debt consolidation solutions.

Serving Hamilton, Burlington, Grimsby, St. Catherines, Niagara, Ancaster, Dundas, Oakville, GTA and other Ontario areas.

www.axcessmortgage.ca

Canadians heed debt warnings and exhibit confidence in their ability to manage their mortgage: CAAMP

Canadian Association of Accredited Mortgage Professionals releases Annual State of the Residential Mortgage Market in Canada report.

TORONTO, Nov. 9, 2011 /CNW/ – Canadians have heard the many cautions about carrying too much debt and are taking action to insulate themselves from future economic downturns, according to the seventh Annual State of the Residential Mortgage Market report by the Canadian Association of Accredited Mortgage Professionals (CAAMP), released today.

Highlights:

• About one-third (32 per cent) of homeowners with mortgages had some mortgage activity in 2011, with 23 per cent renewing or refinancing their mortgage
• Fixed rate mortgages remain most popular (at 60 per cent), while 31 per cent have variable rate mortgages
• Among those who renewed their mortgage in the past 12 months, 78 percent saw a reduction in their rate
• Among those who renewed or refinanced their mortgages in the last year, 21 per cent changed lenders
• Levels of equity takeout have dropped in 2011 – only 10 per cent of mortgage holders took out equity in the last year, a 40 per cent drop from 2010

“Overall, our survey paints a picture of Canadians generally and homeowners in particular as very focused on their finances. They are planning ahead, aggressively paying down their mortgage in advance of any further economic jolt,”" said Jim Murphy, AMP, President and CEO of CAAMP. “Prudent is the word that best sums up how Canadians are feeling at this time.”

Canadians secure in their own positions; skeptical about others
The 2011 survey found an interesting contrast between individuals’ own debt levels and their feelings towards other Canadians’ financial positions. Forty-six per cent of respondents agreed that “as a whole, Canadians have too much debt” and many believe that “low interest rates have meant that a lot of Canadians, who probably should not have, became homeowners over the past few years.”

However, among those with a mortgage, most disagree with the statement “I regret taking on the size of mortgage I did” and a substantial number agree that mortgage debt is “good debt.” Canadians also agree overall that “real estate in Canada is a good long-term investment.”

And, despite being concerned about overall debt levels of Canadians, they believe that they personally have acted responsibly.

Canadians could weather a potential storm
Canadians have insulated themselves by shopping for the best interest rates with the help of a mortgage broker whose market share has increased. Among those who renewed a mortgage in the past year, the number who switched lenders was up to 21 per cent in 2011. At the same time, three quarters of Canadians who renewed or refinanced their mortgage this year saw a decrease in their mortgage rates. For a five year fixed rate mortgage, the average discount has been 1.46 per cent during the past year. And fewer Canadians have taken out equity, down to 10 per cent in 2011.

By comparing rates with different mortgage lenders, aggressively paying down their mortgages, and decreasing the amount of equity they take out of their mortgages, most Canadians appear to be in a comfortable position to weather the economic challenges ahead. In fact, eighty-four per cent of mortgage holders said they can handle an increase of $200 per month in their mortgage payments, and 78 per cent have at least 25 per cent equity in their homes.

“Despite less than positive feelings towards the economy, or maybe because of that, Canadians are showing a level of prudence in their decisions that is inspiring,” said Murphy. “That suggests to us that there is no need for policy makers to introduce new measures that would reduce housing activity.”

The report is authored by CAAMP Chief Economist Will Dunning and based on information gathered by Maritz Research Canada in a survey of Canadian consumers conducted in October 2011.

CONTACT US for a FREE evaluation of your mortgage options:   http://bit.ly/u8dk8S

Marie Copeland Hryczynski, FSU

Axcess Mortgage and Loans Financing is a Mortgage Broker in Hamilton, Ontario. We get clients best interest rates, fast mortgage money and approvals or debt consolidation solutions.

Serving Hamilton, Burlington, Grimsby, St. Catherines, Niagara, Ancaster, Dundas, Oakville, GTA and other Ontario areas.

Visit us at www.axcessmortgage.ca

About CAAMP
Established in 1994, the Canadian Association of Accredited Mortgage Professionals (CAAMP) is Canada’s national mortgage industry association. CAAMP has assumed a leadership role in the industry it serves and has set the standard for best practices for Canada’s mortgage practitioners. In 2004, CAAMP created the Accredited Mortgage Professional (AMP) designation as part of an ongoing commitment to increasing the level of professionalism in Canada’s mortgage industry.

As a membership-based organization, CAAMP strives to develop its network of professionals and to represent the interests of these individuals to government, media and consumers. CAAMP has attracted 12,500 members and 1,700 companies from across Canada – representing over 90% of Canada’s mortgage activity. CAAMP members make up the largest and most respected network of mortgage professionals in the country. CAAMP’s membership base consists of mortgage lenders, brokers, insurers and other industry participants.

Depending on your situation, your monthly expenses can often be reduced by hundreds of dollars, or more, through a debt consolidation mortgage. The savings can be significant!

As Hamilton, Ontario, mortgage brokers, we see financially strapped clients who have equity in their homes, but are not aware that a debt consolidation mortgage, is the least expensive money they can access. We understand their situation and do our best to get them back on track to financial well being.

In today’s environment of record low interest rates, it is an ideal time to get your household cash flow back on track.

The need for Debt Consolidation is not unique. Here are just a few benefits of this mortgage solution:

• Decrease credit card debt and interest
• Simplify monthly finances and improve your cash flow
• Lower and consolidate expensive debt into one low monthly payment
• Eliminate late charges and over the limit fees
• Help manage and improve credit rating
• Eliminate creditor harassment
• Avoid filing for Consumer Proposal or Bankruptcy

CONTACT US FOR A FREE EVALUATION:   http://bit.ly/u8dk8S

Marie Copeland Hryczynski, FSU

Axcess Mortgage and Loans Financing is a Mortgage Broker in Hamilton, Ontario. We get clients best interest rates, fast mortgage money and approvals or debt consolidation solutions.

Serving Hamilton, Burlington, Grimsby, St. Catherines, Niagara, Ancaster, Dundas, Oakville, GTA and other Ontario areas.

Visit us at www.axcessmortgage.ca

I would recommend that while the interest rates are still at record low, which is good news for buyers, the existing home owners also take a good look at their refinance and debt consolidation options. Given the government mortgage rules and most likely future shift in interest rates, this could limit your refinancing ability.

Here is a link to the Bloomberg article:

http://www.bloomberg.com/news/2011-11-02/canada-regulator-urges-banks-to-be-diligent-on-mortgages.html#

Marie Copeland Hryczynski, FSU

Axcess Mortgage and Loans Financing is a Mortgage Broker in Hamilton, Ontario. We get clients best interest rates, fast mortgage money and approvals or debt consolidation solutions.

Serving Hamilton, Burlington, Grimsby, St. Catherines, Niagara, Ancaster, Dundas, Oakville, GTA and other Ontario areas.

Visit us at www.axcessmortgage.ca

]]> http://axcessmortgage.ca/blog/?feed=rss2&p=475 0 http://axcessmortgage.ca/blog/?p=466 http://axcessmortgage.ca/blog/?p=466#comments Wed, 02 Nov 2011 15:19:12 +0000 Marie Copeland http://axcessmortgage.ca/?p=466 Continue reading →]]> As you know, your variable rate mortgage, lines of credit and/or student loans are all based on the Prime Rate so here is your personal update from me on the recent Bank of Canada announcement on changes to their Overnight Rate which in most cases impacts your Prime Rate.

 At 9:00 am EST, October 25^th, 2011, the Bank of Canada did what we expected them to do… they maintained their overnight rate.  What this means to you is that the prime rate on your mortgage or line of credit will not change and remains at 3.00%.  This is great news as you still have a great low rate and so continue to make the most of the low payments you will still have and maybe chat with a financial advisor about a Tax Free Savings Account or some RRSP contributions to trigger a potential income tax refund next year!  If you don’t have a financial advisor, let me know and I’d be happy to recommend one to you.

 Here is an excerpt of the announcement from the Bank of Canada and what they had to say about their decision:

“The global economy has slowed markedly as several downside risks to the projection outlined in the Bank’s July Monetary Policy Report have been realized. Financial market volatility has increased and there has been a generalized retrenchment from risk-taking across global markets. The outlook for the Canadian economy has weakened since July, with the significantly less favourable external environment affecting Canada through financial, confidence and trade channels.  Although Canadian growth rebounded in the third quarter with the unwinding of temporary factors, underlying economic momentum has slowed and is expected to remain modest through the middle of next year.”

The outlook has not changed since the last announcement…. the Canadian economic growth stalled in the second quarter but the Bank continues to expect that growth will resume in the later part of this year.   Based on this repeated message and economic conditions it is anticipated that prime rate might not actually increase until well into 2012 maybe even 2013.  When it does start to increase, it is expected to be gradual and controlled in line with economic recovery, both in Canada and globally.  Remember any change to the prime rate since 1992 has only been by 0.25% at any ONE time.

We have seen the fixed term rates fluctuate slightly since the last announcement and are still very low.

Here is a  link to an article psted in the Canadian Real Estate Magazine that will give you more perspective on the subject: http://www.canadianrealestatemagazine.ca/news/item/859-bank-of-canada-holds-key-lending-rate-a-1-in-october

Marie Copeland Hryczynski, FSU

Axcess Mortgage and Loans Financing is a Mortgage Broker in Hamilton, Ontario. We get clients best interest rates, fast mortgage money and approvals or debt consolidation solutions.

Serving Hamilton, Burlington, Grimsby, St. Catherines, Niagara, Ancaster, Dundas, Oakville, GTA and other Ontario areas.

Visit us at www.axcessmortgage.ca

Or, you need to make home improvements but feel financially strapped or, you want to consolidate expensive debt into one low monthly payment and keep your credit from getting damaged or, you simply need to buy a new car.

Maybe you want to buy a new house and go to the bank just to be told NO with comments that make no sense to you and now you are thinking that you are not able to get a mortgage loan.

On top of this, in the last year, the Government has changed mortgage qualifying rules twice with likely more to follow.

So, now what?

Broker channel lenders respond with flexible, common sense, entrepreneurial mortgage solutions. You need a lender that understands that you are a good borrower even though your income is hard to prove or your credit is bruised. We know who these lenders are and how to package your application so that they say YES.

There is such a thing as NO INCOME MORTGAGE, perfect for those borrowers who cannot prove income with traditional documents or have credit issues. It is an excellent choice for people who are self-employed, primarily paid through their business or other contract arrangements.

Whether you just started a new business or have been self-employed for many years, there are many mortgage broker loan products to meet your unique needs, at attractive interest rates.

Delivering ‘simply the best mortgage solutions’ for business for self clients.

Axcess Mortgage and Loans Financing is a Mortgage Broker in Hamilton, Ontario. We get clients best interest rates, fast mortgage money and approvals or debt consolidation solutions.

Serving Hamilton, Burlington, Grimsby, St. Catherines, Niagara, Ancaster, Dundas, Oakville, GTA and other Ontario areas.

Visit us at www.axcessmortgage.ca

As you know, your variable rate and/or line of credit mortgage is based on the Prime Rate. Here is your update from me on the recent Bank of Canada announcement on changes to their Overnight Rate which in most cases impacts your Prime Rate.

At 9:00 am EST today, May 31st,  2011 the Bank of Canada did what we expected them to do… they maintained their overnight rate.  What this means to you is that the prime rate on your mortgage or line of credit will not change and remains at 3.00%.  This is great news as you still have a great low rate and so continue to make the most of the low payments you will still have and maybe chat with a financial advisor about a Tax Free Savings Account!  If you don’t have a financial advisor, I’d be happy to recommend one to you.

Here is an exert of the announcement from the Bank of Canada and what they had to say about their decision:

“The global economic recovery is proceeding broadly as expected. The U.S. economy continues to grow at a modest pace, limited by the consolidation of household balance sheets. Growth in Europe is maintaining momentum, although the risks related to peripheral economies have increased. Commodity prices have declined recently but are expected to remain at elevated levels, supported by tight global supply and very strong demand from emerging markets. pressures.  Despite the challenges that weigh on the global outlook, financial conditions remain very stimulative”.

The Bank still expects the economic recovery in Canada to continue with expectations to full recovery by the end of 2012.   We are going to see the prime rate increase maybe at the next announcement date or later this year.  Remember, prime rate will increase this year but it is expected to be gradual and controlled in line with economic recovery, both in Canada and globally.  Remember any change to the prime rate since 1992 has only been by 0.25% at any ONE time.

We have seen the fixed term rates fluctuate slightly and are very low at around 3.79% to 4.04% for a five year fixed term. 

Based on this recent announcement, and the anticipation that the prime rate will still remain low for the coming months, unless you feel otherwise, I’d recommend that you remain with your current variable rate product as the interest is very much lower than a fixed term rate right now.  However, if having a fixed payment is important to you, call me so I can calculate what your new payment would look like and also if it is suitable for you. The next announcement on any change to the prime rate is July 19, 2011 at which time I’ll be in touch again.

It’s a great time to buy a property or consider refinancing and as I can hold rates for up to four months, if you know of someone that is looking for advice on their mortgage options, with no obligation, would you mind passing my contact information on to them – a referral is the biggest compliment I can receive and it is very much appreciated.

Marie Copeland (Hryczynski) FSU, Principal Broker, Axcess Mortgage and Loans Financing.  www.axcessmortgage.ca

Mortgage brokers/specialists serving Hamilton, Grimsby, St. Catherines, Niagara, Ancaster, Dundas, Burlington, Oakville, GTA and surrounding Ontario areas.

Financial Services Commission of Ontario No. M08002528

40 year amortization is available on 5 year term mortgages under 80% of property value … suitable for borrowers with fixed, permanent full time income.

This option gives you the lowest monthly payment … also perfect for purchases when you need more room on your ratios to qualify or refinancing to consolidate expensive credit card debt into one low monthly payment.

Also, investors LOVE the 40 year amortization for their residential rental properties because it helps them with the cash flow.

Currently through the broker channel you can get a 3.79% fixed 5 year interest rate for mortgages closing by July 15, 2011 (on approved credit).  

Here is a fixed rate comparison at 3.79% at 40 year vs. 30 year amortization:

• 40 year amortization at 3.79% on a $250,000 initial mortgage balance your monthly payment is $1007.91 vs. $1,159.27 at 30 year amortization.
• SAVINGS:  $151.36 per month and $1,816.32 over 1 year.

And, a Variable Interest Rate comparison at 40 year vs. 30 year amortization:

• 40 year amortization at Prime – 0.65% on a $250,000 initial balance your monthly payment is $802.34 vs. $966.95 at 30 year amortization.
• SAVINGS:  $164.61 per month and $1,975.32 over 1 year.

Giving you the tools to lowest monthly mortgage payments with the 40 year amortization!

Marie Copeland (Hryczynski) FSU, Principal Broker, Axcess Mortgage and Loans Financing.  www.axcessmortgage.ca

Mortgage brokers/specialists serving Hamilton, Grimsby, St. Catherines, Niagara, Ancaster, Dundas, Burlington, Oakville, GTA and surrounding Ontario areas.

Financial Services Commission of Ontario No. M08002528

With the recent Government Mortgage changes, many home buyers no longer qualify for the value of the home they qualified for a year ago. But, as the new Government changes take effect, the broker channel lenders are introducing innovative mortgage products to help the home buyers get into their “dream home” NOW.

TODAY’s home buyers often are not satisfied with a ‘starter home’. They want it all and they want it all now. Their list is long. Their budget is small. But, sometimes the perfect house is just missing that one or two “must haves” on the list.

Who is the “Purchase + Improvements” program for?

It is suited to home buyers that require improvements to their newly purchased home by consolidating the purchase price and the improvements into one mortgage.  This program is for buyers with good credit who can prove their income.

What types of properties qualify? 

• Maximum 2 units up to 95% loan to value
• Maximum 4 units up to 90% loan to value
• Owner occupied up to 3-4 unit
• Second home
• Rental properties

How much can you add to the mortgage?

Improvements cannot exceed the lesser of 10% of initial value or maximum $40,000.

 What qualifies and what doesn’t?

Improvements must add value to the property to qualify for the “Purchase + Improvements” program. Here are some examples of expenses that qualify:

• Adding a garage
• Property needs a new roof
• The flooring needs to be updated
• Granite countertops up to a full new kitchen
• Modernize the bathroom
• Upgrade wiring
• Pool and landscaping

Expenses to remediate a property deficiency DO NOT qualify for the “Purchase + Improvements”program. Such ineligible expenses include a leaky condo fix, grow ops fix, asbestos/uffi/insulbrick removal or major structural repair (i.e., cracked foundation).

Instead of trying to find that elusive dream home at an outrageous price … find a house with most of what you want and use your mortgage to create your own dream home. With the “Purchase + Improvements” program, you can customize your new home now instead of waiting for several years to make home improvements!

* On approved credit.

Marie Copeland (Hryczynski) FSU, Principal Broker, Axcess Mortgage and Loans Financing.  www.axcessmortgage.ca

Mortgage brokers/specialists serving Hamilton, Grimsby, St. Catherines, Niagara, Ancaster, Dundas, Burlington, Oakville, GTA and surrounding Ontario areas.

Financial Services Commission of Ontario No. M08002528