13 Aug

What Affects Your Credit Score?

General

Posted by: Allison Kehler Tolley

What Affects My Credit Score?

By TransUnion

By now, most graduates have waved goodbye to grades, at least for the summer.  But whether graduation was long ago or last week, you’re still being graded in one way you may not have realized: your creditworthiness.

Credit scores may be an evaluation of your creditworthiness, one way or another.  In that sense, scores are very much like  grade s- you’re in control, and good, stead credit habits can go a long way.  But just like with school grades, it also helps to have an idea of what credit score calculations are based on.  That way, you can figure out what you need to work on so your credit’s at the top of the class when it counts – applying for a rewarding credit card, getting a great mortgage rate, and other situations where good credit may be critical.

Most credit scores can share some similarities in what they value.  In approximate descending order of importance (most impact to least impact), these several factors tend to influence credits scores of all kinds, including:

  • Payment History.  Do you pay your bills on time?  Your credit score may take into account any missed or late payments, how long you went unpaid, and how often.
  • Amount owed.  This includes totals you owe to all creditors, how much you owe on particular types of accounts, and how much available credit you have used.
  • Types of Credit.  Generally speaking, the more types of accounts you have (credit cards, retail accounts, mortgage loans, installment loans), as well as the total number of accounts you have, influences your credit score.
  • New Loans.  Have you shopped for or received new credit recently?  Applying for credit with different lenders within a short period of time may lower you score, especially if you have a relatively short credit history to begin with.
  • Length of Credit History.  The age of your oldest credit account, the age of your newest account, and the average age of all your accounts may each play a role in the calculation of your score.

If this seems overwhelming, don’t worry.  Just make sure you’re doing your best to pay your bills on time and regularly check in on your credit.  When you’re ready to take a deeper dive, look at how you can work on some of the above factors.  With just a little bit of studying, you can graduate to a higher level of credit knowledge.

To review the original article, please click here.

 

16 May

Stress Test Increase. Who will be affected?

General

Posted by: Allison Kehler Tolley

The date of a proposed increase in the stress test rate for uninsured mortgages is looming, with the Office of the Superintendent of Financial Institutions (OSFI) set to publish recommendations on the hike on May 24.

The change – which would see the threshold increase on June 01 to 5.25% or two percentage points above the market rate, whichever is higher – would cause few ructions in the mortgage industry, having already been widely discussed since OSFI announced its proposal in early April.

However, the CEO of a prominent industry association says that mortgage professionals should be attuned to another prospect in coming weeks: that the OSFI announcement could be accompanied by a similar hike in the stress test level for insured mortgages.

Paul Taylor, CEO of Mortgage Professionals Canada (MPC) (pictured), told Mortgage Broker News that there remained a real possibility of Finance Minister Chrystia Freeland unveiling such an increase before the beginning of June.

“There’s some anticipation that the minister of finance will also match OSFI’s uninsured qualification rate for the insured stuff,” he said. “I think that many in the industry anticipate that [Freeland] will make an announcement very soon following OSFI’s.

“The superintendent is supposed to make a determination publicly on the 24th of this month for a June 01 implementation, so it’s not inconceivable that [Freeland] would make an announcement on the same day for the insured change to also occur on June 01.”

The impact of OSFI’s proposals for the stress test on uninsured mortgages would likely be mild, with Taylor pointing out that they would only reduce purchasing power by around 4% for those homebuyers whose down payments are more than 20%.

However, he said that a stress test hike for insured mortgages would likely have a more significant, and detrimental, effect on the market and the Canadian economy.

“We [MPC] are hoping that that doesn’t happen immediately, given that the people with less than 20% down are predominantly first-time buyers,” he said. “Given that the market is so intense, reducing qualification for insured mortgages really will push people out of it. That might have more negative long-term economic consequences for Canada.”

While Taylor emphasized that his hope was for the federal government to wait and see how things play out before making a decision on increasing the insured stress test rate, he noted that the finance department would be receiving responses to the OSFI consultation on May 24, and could therefore act swiftly. “Hopefully they’ll wait a while,” he said, “but it could be as soon as the same day.”

https://www.mortgagebrokernews.ca/news/alternative-lending/wholl-be-most-affected-by-the-stress-test-hike-355414.aspx

Article compliments of Mortgage broker News

6 May

LETHBRIDGE and Area this past month …Compliments of Michelle Greysen

General

Posted by: Allison Kehler Tolley

REAL ESTATE UPDATE
“Sales continued to surge this month, pushing year-to-date sales up to 736 units. Not only is this a record start to the year but reflects sales that are over 66 per cent higher than long-term averages. Lethbridge has continued to see a steady rise in employment levels since the lows of the pandemic. The improving job market, low mortgage rates and some sense of urgency given concerns over rising mortgage rates and potential rule changes are likely contributing to the jump in sales.

While new listings did reach levels that have been higher than what was seen over the past four years, the strong pace of sales was enough to prevent any significant additions to inventory levels and keep the months of supply just above two months. This is the lowest level of months of supply seen since 2007. While some shifts in distribution are likely impacting prices, generally prices in the area have been trending up. On a year-to-date basis, both median and average prices have increased by nearly 10 per cent.”
https://www.albertarealtor.ca/page/alberta-statistics

21 Apr

Bank of Canada Makes Rate Announcement

General

Posted by: Allison Kehler Tolley

Amid an improved outlook for both the domestic economy and the global financial system and the Bank of Canada announced that it will hold its target for the overnight rate at the effective lower bound of 0.25%, and that it will be adjusting its weekly net purchases of Government of Canada bonds.

The bank rate has also been kept at 0.5%, and the deposit rate at 0.25%.

“The Bank continues to provide extraordinary forward guidance on the path for the overnight rate, reinforced and supplemented by the Bank’s quantitative easing (QE) program,” the institution said in its announcement. “Effective the week of April 26, weekly net purchases of Government of Canada bonds will be adjusted to a target of $3 billion. This adjustment to the amount of incremental stimulus being added each week reflects the progress made in the economic recovery.”

Canada’s sustained resilience despite the COVID-19 pandemic has called for these steps, although the central bank emphasized that “the recovery remains highly dependent on the evolution of the pandemic and the pace of vaccinations.”

Read more: Finder: Low-rate environment can help Canadians address high debt levels

The BoC projected global GDP to grow by just over 6.75% in 2021, around 4% in 2022, and nearly 3.5% in 2023.

“The recovery in the United States has been particularly strong, owing to fiscal stimulus and rapid vaccine rollouts,” the bank said. “The global recovery has lifted commodity prices, including oil, contributing to the strength of the Canadian dollar.”

However while substantial employment gains in February and March accompanied Canada’s stronger-than-expecteed economic growth in the first quarter, The BoC warned the ‘new lockdowns will pose another setback and the labour market remains difficult for many Canadian especially low wage workers young people and women.”

Read the full article compliments of Mortgage Broker News.

https://www.mortgagebrokernews.ca/

14 Apr

Lethbridge and Area This Past Month….Michelle Greysen CIR Realty

General

Posted by: Allison Kehler Tolley

Lethbridge market continues to be carried by most of the sales in the 200,000.00- 400,000.00 range, but sales did increase across all price ranges. In fact the sales for the month of March out performed the 10 year average by 61%. The detached and semi detached markets continue to rise. The row and apartment style are still lagging behind with the row housing remaining balanced. The apartment style is still well within a buyer market.

The total amount of sales across Alberta in March exceeded the 10 year average by 56%. Consumer confidence has returned to the Real Estate Market. All indications support the strong markets are to continue as the first time home buyers appear to be fueling the market. This allows seller to move up the property ladder. With incredibly low interest rates, increased savings and limited options as to where to spend money many people are choosing to invest in real estate!

Here is the link for Michelle Greyson for any questions about real estate purchases:

https://michellegreysen.cirrealty.ca

11 Apr

Getting Your Grass Green and Growing, Ready For Spring!

General

Posted by: Allison Kehler Tolley

Spring is just around the corner and I have a few great tips to get your yard ready for the the coming season!

1. Clean Up Your Yard: Remove and branches or other debris that has piled up over the winter months. Rake out the old dead grass and debris.
If you have a leaf blower that makes things even easier!

2. Apply Environmentally Friendly Fertilizer: To help your lawn shine this spring,now is a good time to start tending to your yard. Use an
environmentally friendly now and in 6-8 weeks will help your lawn sprout up. https://www.growingagreenerworld.com/ has lots of great tips!

3. Mow Early and Often: If you want to avoid stunting your lawn growth, you will want to mow your lawn every five or six days to ensure a thicker
fuller yard!
4. Trim the Trees: Trees that are left unattended can cause damage and potential injury from falling, dead branches. Consider hiring a
professional to prune your trees every three years to prevent decay and damage.
5. Avoid Seeding Until Fall: If you have brown patches in your yard it might be tempting to fill them with grass seed but wait until after your
fertilize and they should grow in within a few weeks!

compliments of DLC Newsletter

6 Apr

What is Reverse Mortgage?

General

Posted by: Allison Kehler Tolley

Did you know?
Reverse mortgages are gaining popularity for Canadians over 55! Many Canadians are looking to retire but are faced with high debt loads and ongoing expenses and a reverse mortgage can help! This is also a great product for anyone wanting to help their elderly family members. Instead of selling their house and moving them to care or assisted living a reverse mortgage can help. its a great way to access the equity in their home and help pay for ongoing costs.

The goal of a reverse mortgage is to allow for Canadians over 55 to access the equity in their home and assist with comfortable financial living. With the reverse mortgage the borrowers are not required to make regular payments. It allows for a considerable inflow of cash without having to pay off what they owe. The only time a payments due is when you sell the home or move out of it. Reverse mortgages can be can be set up as a one time lump sum or a structured monthly payout.

Reverse mortgages also have additional benefits including:
* No monthly payments.
*No income qualifications.
*Title and ownership remain int he property owners name.
*Flexible option if you need to break the term early.
* Penalty waived in the event of death or care home placement.

Struggling financially later in life is can be avoided by a reverse mortgage. You can use the funds to pay off debt or gift money to family or even increase your investment portfolio If you need assistance in possibly acquiring a reverse mortgage please contact me today! I would be happy to discuss your options and find a product that best suits your needs! Access my website for all the information you need to know about mortgages. Fill out my online application or access my contact form!
Information provided by April newsletter by Dominion lending

1 Apr

6 Important Questions to Ask Before a Big Home Renovation

General

Posted by: Allison Kehler Tolley

So you want to do a home renovation project?! Now its time to look for the right contractor to do the job! Doing a thorough job looking online and asking friends and family is important. Once you find your potentiate contractor, its time to treat the process like a job interview! Being prepared with the right questions can prevent problems in the future but also ensures you are happy with the finished result.

If you are hiring a contractor for your big home reno make sure you ask these important questions..

1. What is your experience in home renovation?

This question can help you determine how long the contractor has been in the bushiness and whether or not they have worked with similar challenges. It is important to also confirm that they will be able to finish the project on time and the steps they will use to ensure the completion. Looking on social media for positive reviews will also help to confirm you have make the right choice.

2. Do you have a contracting license?

Depending on which province you live in there are different requirements for what type of license a contractor has to hold. Check the laws in your region to see what may apply and confirm with the contractor that they hold the proper license.

3. Do you carry the proper insurance?

The information provided by the Canadian Homeowners Association, hiring people without the proper insurance could put you in legal or at financial risk should something happen in your home. Make sure this is one of the first things you check off your list. Protect yourself and the contractor by making sure they have workers compensation and liability insurance.

4. Will you recieve a written contract?

If the answer to receiving a written contract is no then don’t even bother moving forward with the interview. The CHBA says contract should cover a description of the work also the materials used and the cost of the job. It should also include a payment schedule. Paying full price upfront is an usual business practice.

5. Can you can get in touch with past clients?

A contractor should be proud of the past work! Contact past customer and ask about completion timelines and ask how disputes were resolved!

6. Who is responsible for building permits?

If building permits are needed make sure that there is a clear understanding of who is applying for them and ensuring they are valid. Always attend the final inspection with the builder to ensure work is done properly and that if any changes are needed you can confirm they are completed!

article provided by FCT

30 Mar

What is the difference between a rate hold and a pre-approval

General

Posted by: Allison Kehler Tolley

Hi!

In my experience is there is a huge difference between a rate hold and a pre-approval. Rate holds can be a quick conversation and consent for credit. The file is submitted without verification of income or down payment and the rate hold can be up 90-120 days. A formal pre-approval includes collection all of the documentation up front. Confirmation of down payment and also confirming annual income. Confirmation of income is so important. In the event there is any discrepancy in paystub hours or annual 2 year average it can affect your file in a negative way and the purchase price that was mentioned could be void. It is important to make sure that you provide your most recent paystub, T4 slips and job letter as soon as possible to allow me to confirm your income prior to shopping for a property. There are several downpayment types that we can use. Savings, borrowed or gifted. For more information please contact me at 403 892-5368