News from the Canadian mortgage scene....

June 230, 2009...which properties qualify for a Canada mortgage

Once you have qualified for a Canadian mortgage loan, you need to know which kind of properties that you can purchase easily.  Most Canadian lenders will approve standard houses, townhouses and apartments.  Some of the properties that may be difficult to purchase are properties that are on leased land, or mobile homes (where you don't own the land), houses that were grow-ops, condos that had a leak issue, farms or properties that are in remote areas.  It is not "impossible" to purchase these types of properties, but the rates and fees may be significantly higher because you may have to deal with "B" type lenders or private lenders.  More info coming your way soon. 

June 26, 2009...purchase a Canadian home for 5% down

If your credit is in good shape, you can purchase an Alberta property with as little as 5% down.  There are some Canadian mortgage lenders that can assist you if you have no downpayment, by way of giving you the downpayment, though this will cost you a little more, with a higher interest rate.  To qualify for the 5% down, you will usually need at least 12 months of credit history on your credit bureau report.  So, even though many of you don't like buying things on credit, it is sometimes a necessary evil.  The only way a Canada mortgage lender can determine if you are a good credit risk is by seeing whether you have already established credit (ie Visa, MasterCard, personal loan, etc), and that you pay your debts on time.  We'll talk more about this tomorrow.

June 21, 2009...qualify for an Ontario equity loan

With so many different lenders in the market, and so many different qualifying specifications for a Canadian mortgage, the best suggestion is to speak with a Canada mortgage broker.  But as a basic guideline, if you are employed, you will need a job letter and recent paystub from your employer.  The amount that you earn, less the debt that you pay for monthly, determines whether you qualify from an income perspective.  If you are self-employed, there are different income qualifications that your BC mortgage broker can answer.  For info about the pitfalls of Canadian credit, click here.

June 17, 2009...Manitoba credit counselling and mortgages

Bankruptcy and credit counselling are 2 popular ways to eliminate your debt.  But be very careful before you select those options.  The immediate impact is that you eliminate your Canadian debt.  But the long term effect can be devastating to you and your family.  The reason for this is because both of those options will destroy your credit for a number of years.  Most lenders will want you to be discharged for at least 2 years and have 1 year of re-established credit before they will lend to you.  It is also very difficult to get credit cards and other loans.  And to many lenders, Credit Counselling is considered to be just like bankruptcy because you are asking creditors to take less than they are owed.  The bottom line is, be very careful on how you try to get out of debt.  For another article about mortgage refinancing in Canada, click here.

June 16, 2009...Alberta mortgage tips

Now let's take a look at items that do not help your credit score.  Unless a creditor reports to Equifax, your credit score cannot improve.  For example, bills such as Canadian car insurance, house insurance, cell phone bill, and gym fees cannot help you.  If you don't pay them on time, or refuse to pay the bill, the creditor may report it to Equifax, and it will hurt your credit. You may feel good that you "won the argument" and didn't pay the bill, but you will end up paying in the long run with destroyed credit.  Finally, mortgage payments are usually not reported to Equifax unless you are with a Canadian Credit Union.  So even though you have paid your mortgage on time for a number of years, it will not affect your credit score. To read more about mortgage rates in Ontario, Canada, click here.

June 15, 2009...Canadian mortgage and your credit score

As a follow up to my previous entry, let's talk a little more about what Equifax and what it shows.  The Equifax report shows whether you have made your payments on time.  If you are "on time" with your credit card payments, you will get an R1 rating.  If you are "on time" with loans, you will have an I1 rating.  If you are 30, 60, 90 or 120 days late, you will have a progressively worse score.  If the account has been sent to collection, it will show, and your score will drop.  On the positive side, the longer you have made your payments on time, the higher your score will be.  Other things that bring your British Columbia credit score down are 1) keeping credit balances higher than 50% of credit limit, 2) collections, and 3) too many inquiries on your credit bureau over a short period of time. To read more British Columbia mortgage rates in Canada, click here.

June 2, 2009...Credit score info for Canadians

Your ability to borrow money greatly depends on your credit score.  In Canada, there are 2 major credit gathering agencies, Equifax and Trans Union.  Companies such as Visa, MasterCard, retail cards, and personal loan lenders report to them on a monthly basis.  From this information, Equifax and Trans Union rate your credit.  The credit scale ranges from 300-900, with 900 being the best.  If you pay all of your bills on time, you will be on the upper end of the scale.  If you pay your bills late, or have collections, judgements, or bankruptcies, you will be on the lower end.  To get a good mortgage rate, you need a score of approximately 660 or greater. To understand more about getting mortgage rates in Canada, click here.

May 26, 2009...Canadian mortgage appraisal

When you are purchasing a Canadian property, you will usually be required to have an appraisal done by an accredited appraiser.  The usual cost is around $300, but if the property is larger, rural or out-of-the-way, it may be more expensive.  With a Canadian appraisal, the payment is due immediately to the appraiser.  On another note, if your mortgage is greater than 80% of your property value, it is called a high ratio mortgage, and it will need to be insured.  I will talk more about that next time. To read more about getting a second mortgage in Ontario, click here.

May 21, 2009...Alberta property purchase info

After you have finished with your Alberta mortgage broker in getting a Canadian mortgage, here is some good info to know.  If you are purchasing a new home, remember, you will need to set aside some money for the GST.  If it is a used home, GST does not apply.  Also, don't forget about lawyer fees.  You may need about a thousand dollars to cover that expense.  And you will need to be prepared for the property tax portion of the time you will be living in the house that year.  The adjustment will be made by your lawyer.  To learn more about an Ontario mortgage, click here.

May 20, 2009...Canadian private mortgage broker

When you are purchasing a Canadian house, you will usually need to put down a deposit when making an offer.  When the vendor has accepted your offer, you normally have about 7 days to remove the subjects (ie financing, appraisal, inspection).  The amount of the deposit is not standard, so check with your agent.  And remember, when you are buying your British Columbia property, there is a property tax that must be paid.  Unless you are a first time buyer (thus being exempt), the calculation for the tax is 1% on the first 100K and 2% on the balance.  To find out more about a Private mortgage in Ontario, click here.

Apr 8, 2009...BC lender and broker fees
 

Mar 27, 2009...Canada mortgage lender
 

Mar 18, 2009...Canadian mortgage market
 

Mar 10, 2009...Alberta construction loan mortgage
 

Mar 5, 2009...Alberta refinancing..make sure to pay your taxes
 

This site is dedicated to Canadian citizens who wish to get an Ontario mortgage.  It also has recommendations on how to improve your chances of getting a mortgage by reducing credit card debt.