Competition = Low Mortgage Rates

Recognizing the Danger Signs

You may have a debt problem if:

• you are feeling stress and anxiety over money situations and finding it difficult to sleep at nights.
• your monthly bank statements are in the negative.
• you're only able to pay the interest and service charges on your credit cards.
• you are afraid to open your mail or answer unknown phone numbers.
• your services have been cut off such as hydro or telephone.
• you're always borrowing money from family and friends and then find yourself avoiding them because you cannot afford to re-pay them.
• creditors are pressuring you and threatening to sue.
• you have received notification in the mail from a collection agency.
• your wages have been garnisheed.

Is Mortgage Insurance Required?

First time home buyers are generally required to have mortgage insurance if their down payment is less than 25% of the purchase price for the property. The home buyer can either get private or public mortgage insurance through the Canada Housing and Mortgage Corporation known as CMHC or through GE Capital.

What is a BEACON Mortgage Score?

The BEACON® Mortgage Score is a brand of FICO credit score rating issued by Equifax, the largest credit-reporting agency in Canada, designed specifically to help mortgage lenders make the best possible risk decisions when addressing both current homeowners and those aspiring to own. The score identifies up to 25 percent more of the high-risk mortgages and home equity lines-of-credit that later became seriously delinquent then that of the general risk BEACON score.

BEACON Scores are the first thing mortgage brokers look at when determining what mortgage rates and products are available to the consumer. These credit scores can range from 300 (worst) to 850 (best). The average Canadian adult over 30 has a beacon score of around 680. Banks lend based on this score. The better the score the better the term and rate you will receive. A mortgage agent can assist you in determining where you fit with the lenders as well as guide you in improving your beacon score.

Deciding what you Want in a New Home

It is important to clearly define what is important to you and your family to have in a new home. Most people focus on how much they can afford to spend, but there are other things to also consider.

Before shopping for that new home, write down a list of things you would like to have in your new home and divide them by essential items and nice-to-have items.

Ask yourself questions such as:

• What area of the city is desirable?
• What style of home is preferred?
• How many bedrooms are required?
• What amenities are in the area?
• Is a garage important?