Brent Irving - Mortgage Broker, Vancouver, BC

Close to 70% of renters in Canada said they would be willing to delay major purchases and more than half would give up vacations to own their own home, according to Genworth Financial Canada's most recent First-Time Homebuyer's Monitor

"The First-Time Homebuyer's Monitor results confirm something that homebuilders consistently witness at the point of sales, namely the intense desire of Canadians, particularly first-time homebuyers, to achieve the dream of homeownership," Stephen Dupuis, president and CEO of the Building Industry and Land Development Association, wrote in the report.

In addition, the survey - which polled 2,000 Canadians - found that a large number of first-time homebuyers would forgo vacations (82%), work a second job (65%) or take on a renter (44%) to stay in their home when times are tough. Findings also showed that only 16% of respondents indicated they are "very prepared" for an interruption in income that would make mortgage payments difficult.

Brent Irving

MortgageExpert

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Email: birving@dominionlending.ca

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5 Key Ways to Help Improve Your Credit Score

Leading up to the holidays is the perfect time to think about things like improving your credit score and consolidating debt. After all, the holidays are a joyous time that should not be overshadowed by financial woes. And even if your credit score is good, these tips may make it even better. After all, the better your credit score, the fewer hurdles you’ll have to overcome when looking to renew or refinance your existing mortgage, or obtain a new one. Nowadays having good credit is as important as ever. Very few lenders are interested in making exceptions for people that have had credit challenges.

Following are five steps to a speedy credit score boost:

1) Pay down your credit cards. The number one way to increase your score is to pay down your cards to 30% of their limits. Revolving credit like credit cards seems to have a more significant impact on your score than car loans, lines of credit, and so on. Lenders will often use the term credit utilization. By paying down your cards to 30%, you are leaving a big gap between what your limit is and what you owe – a move that is very favourable to increasing your credit score.

2) Limit the use of your cards. Racking up a large amount and then paying it off in monthly instalments can hurt your credit score. If there is a balance at the end of the month, this affects your score – credit formulas don’t take into account the fact that you paid it all off the next month. By being more accountable of your spending on a daily or weekly basis through the use of a budget, you can keep those cards below the magic 30% mark.

3) Check your limits. If your lender is slow to report your monthly transactions, this can have a big impact on how another lender may view your file. Make sure everything is up to date. Old bills that have been paid can come back to haunt you. Some financial institutions don’t even report your maximum limits. As such, the credit bureau is left to only use the balance that’s on hand. The problem is, if you consistently charge the same amount each month – say $1,000 to $1,500 – it may appear to the credit-scoring formula that you’re regularly maxing out that card. You could go on a wild spending spree to raise the limit, but a more sensible solution would simply be to pay your balance down or off before your statement period closes.

When making payments online, do so about a week before the period closing date printed on your latest statement to ensure the payment is received on time – it can take up to five business days for a payment to be received. This won’t raise your reported limit, but it will widen the gap between your limit and your closing balance, which should boost your score.

4) Keep your old cards. Older credit is better credit. If you stop using those older credit cards, the issuers may stop updating your accounts. As such, they will lose their weight in the credit formula and, therefore, may not be as valuable – even though you have had the card for a long time. Use these cards periodically and then pay them off.

5) Don’t let mistakes build up. Dispute any mistakes or situations that may harm your score. If, for instance, your cell phone bill is incorrect and the company will not amend it, you can dispute this by making the credit bureau aware of the situation.

As always, if you want to talk about your credit score or consolidating debt, I’m here to help. I'm a mortgage broker located in Vancouver BC serving all of Canada working for Dominion Lending Centres.

In an article dated November 11, 2008 in the Vancouver Sun they point out 3 ways that you can avoid having to meet the Federal Governments minimum requirement of a 5% down payment on a property purchase. The 3 basic ways in the Vancouver Sun article in which you can avoid the 5% down payment are in the are as follows;

* Wells Fargo still offers 100% financing because they self insure their mortgages. Wells Fargo 100% financing mortgages are available through mortgage brokers such as myself.

* Borrow the 5% from credit cards or lines of credits. There is more to it than simply borrowing from a line of credit or existing credit card. You need to make sure you get proper advice before simply borrowing for the down payment and are aware of the specific rules set out by mortgage insurers before considering this mortgage option.

* Borrow the 5% from a friend or family member and then take a cashback mortgage and pay them back. There are significant costs to a cashback mortgage that you should be fully aware of before being tempted by this type of mortgage arrangement. Although despite the cost it can make sense in certain scenarios.

Below is the link to the Vancouver Sun article:

Want a mortgage with Nothing Down?All you need to do is skirt a few rules

I feel it's important to point out that all 3 options carry a cost to the borrower with the second option most likely being the cheapest. it's also important to note that any time your skirting around rules you could open yourself up to potential problems unless you are fully aware of all of the issues.

Don't hesitate to contact me if you have any questions on the Vancouver Sun mortgage article. You can also visit my website for tips on mortgages in Vancouver at MyMortgageBC.com.