OTTAWA — Parks Canada’s crumbling forts, historical houses and other heritage structures are in much poorer shape than the agency estimates.
That’s the finding of an independent consultant asked to review a comprehensive inventory created by Parks Canada to determine how much repair work is needed for its varied infrastructure across the country.
The agency’s 2012 inventory found that 47 per cent of all its assets — from dams, bridges and roads, to old stone forts — are in poor or very poor condition.
But Opus International Consultants Ltd. said its own sampling of hundreds of assets pushed that overall level to 53 per cent.
And so-called cultural assets — the historical houses, fortifications, locks and other heritage gems from Canada’s past — are in even worse shape.
Opus estimates 61 per cent of these 2,000 structures are in poor or very poor shape, compared with Parks Canada’s more rosy assessment of just 33 per cent.
“Results indicate that at the portfolio level the value of (Parks Canada) assets in poor condition has increased from condition reported in the 2012 National Asset Review,” says the Opus report, which cost taxpayers $316,000.
A copy of the Dec. 16, 2013, document was obtained by The Canadian Press under the Access to Information Act.
Parks Canada has come under fire in recent years for weak management of its real-estate portfolio, which includes historic canals and archeological sites, in addition to campgrounds, access roads and visitor centres.
An internal evaluation in 2009 slammed officials for failing to maintain a reliable inventory of hundreds of buildings and other structures, estimated to be worth some $15 billion today.
In response, Parks Canada undertook a thorough review of all its assets in 2012 to set a baseline, estimating there was $2.9 billion worth of deferred repairs.
More than half the deferred work was earmarked for waterways, highways and bridges — so-called high-risk assets — but Opus found these structures were in better condition than Parks Canada estimated.
Instead, irreplaceable cultural assets were found to be the most neglected, with almost two-thirds requiring about $230 million worth of repairs and maintenance work.
A spokeswoman for Parks Canada said the agency is still reviewing the Opus report, which she said largely backs the inventory estimates about the cost of repair work.
“Parks Canada has invested an average of $119 million annually over the last 10 years on the recapitalization of its infrastructure,” Genevieve Patenaude said in an email.
“Investments include incremental capital resources announced by the government, the most recent of which was $19 million announced in Budget 2013 to address critical improvements to national park highways and bridges.”
Parks Canada, which operates more than 200 national parks, historic sites and marine conservation areas, has been hit hard since 2012 with budget cuts. The agency lost some 587 staff in 2012-2013, for example, or about 13 per cent of its workforce.
At the same time, 20.6 million people visited its sites in 2012-2013, a three per cent increase and the first rise in visitor numbers in four years.
Hundreds of Canadian Credit Cards Hacked By Infected Terminals, Firm Warns
A new strain of computer malware infecting payment card terminals in restaurant and gas station has compromised nearly 700 credit cards in Canada, a computer security firm says.
The viral code, JackPOS, infects point-of-sales terminals, a security breach similar to other highly publicized recent cases that struck victims such as the Target retailing chain or the White Lodging hotel management firm.
According to a map released Monday by the California security firm IntelCrawler LLC, JackPOS stole data from 400 cards in Vancouver and from 280 other cards at a location in Longueuil, Que., south of Montreal.
IntelCrawler said the infection appeared about three weeks ago.
In an e-mail to The Globe and Mail, IntelCrawler CEO Andrew Komarov said the point-of-sales terminals were breached through remote access, by hackers who created a large list of possible passwords (such as POS1, Administrator or 123456789) and then “brute-forced” themselves into the systems.
“It provides them good results, as the security in this sector is surprisingly really very poor,” M. Komarov wrote.
Other countries affected by JackPOS include Brazil, where data for 3,000 cards in Sao Paulo were stolen; India, where 420 cards were compromised in Bangalore; and Spain, where 230 cards were pirated in Madrid.
The two outbreaks in Canada likely happened at a gas station, said Richard Henderson, a Vancouver-based security strategist for Fortinet's Threat Research Labs.
“In Canada we’re lucky that the vast majority of our transactions done day-to-day are with chip-and-PIN, which are much more secure,” he said, adding however that some gas stations’ pumps are still relying on the old magnetic-swipe method that is more vulnerable to hacking.
JackPOS appears to be a variation of a previous malware, Alina. Both are known as RAM scrapers, which capture card data when it is transmitted from the sales terminal to a payment-processing centre.
Mr. Henderson said JackPOS’s key feature is its ability to hide on a machine by pretending to be a version of Java, a programming platform used by some computer applications.
“That’s a really neat obfuscation technique by the malware to make it look like it’s a legitimate piece of software.”
According to a global security report by the anti-cybercrime firm Trustwave, victims of point-of-sale hacking tend to be merchants or franchises who have to outsource their IT work and rely on contractors who access their systems remotely. Weak passwords and remote access make it easier for hackers to breach POS systems.
Most of the breaches can be attributed to three criminal groups, with the data being dumped in Russia, Ukraine or Romania, the Trustwave report said.
The rollout of chip-and-PIN cards in Canada and Europe have made fraud harder. However, the report said cyber-thieves still go after POS targets in hotels and premium retailers, because those businesses attract an international clientele that does not have chip-and-PIN cards.
The viral code, JackPOS, infects point-of-sales terminals, a security breach similar to other highly publicized recent cases that struck victims such as the Target retailing chain or the White Lodging hotel management firm.
According to a map released Monday by the California security firm IntelCrawler LLC, JackPOS stole data from 400 cards in Vancouver and from 280 other cards at a location in Longueuil, Que., south of Montreal.
IntelCrawler said the infection appeared about three weeks ago.
In an e-mail to The Globe and Mail, IntelCrawler CEO Andrew Komarov said the point-of-sales terminals were breached through remote access, by hackers who created a large list of possible passwords (such as POS1, Administrator or 123456789) and then “brute-forced” themselves into the systems.
“It provides them good results, as the security in this sector is surprisingly really very poor,” M. Komarov wrote.
Other countries affected by JackPOS include Brazil, where data for 3,000 cards in Sao Paulo were stolen; India, where 420 cards were compromised in Bangalore; and Spain, where 230 cards were pirated in Madrid.
The two outbreaks in Canada likely happened at a gas station, said Richard Henderson, a Vancouver-based security strategist for Fortinet's Threat Research Labs.
“In Canada we’re lucky that the vast majority of our transactions done day-to-day are with chip-and-PIN, which are much more secure,” he said, adding however that some gas stations’ pumps are still relying on the old magnetic-swipe method that is more vulnerable to hacking.
JackPOS appears to be a variation of a previous malware, Alina. Both are known as RAM scrapers, which capture card data when it is transmitted from the sales terminal to a payment-processing centre.
Mr. Henderson said JackPOS’s key feature is its ability to hide on a machine by pretending to be a version of Java, a programming platform used by some computer applications.
“That’s a really neat obfuscation technique by the malware to make it look like it’s a legitimate piece of software.”
According to a global security report by the anti-cybercrime firm Trustwave, victims of point-of-sale hacking tend to be merchants or franchises who have to outsource their IT work and rely on contractors who access their systems remotely. Weak passwords and remote access make it easier for hackers to breach POS systems.
Most of the breaches can be attributed to three criminal groups, with the data being dumped in Russia, Ukraine or Romania, the Trustwave report said.
The rollout of chip-and-PIN cards in Canada and Europe have made fraud harder. However, the report said cyber-thieves still go after POS targets in hotels and premium retailers, because those businesses attract an international clientele that does not have chip-and-PIN cards.
How Higher Rates Might Affect Your Mortgage
Interest rates have been so low for so long that we barely raise an eyebrow about the warnings of higher rates ahead. But long-term interest rates might tick upward this year as the U.S. Federal Reserve cuts back on its economic stimulus which has kept rates low.
For the past five years, the Fed has been buying U.S. Treasury bonds every month by creating the money. It writes a cheque to buy the bonds which has expanded consumer credit, making it cheaper to borrow money.
The impact of the Fed’s action on Canadian homeowners is a gradual increase in long-term mortgage rates. This includes the five-year fixed rate mortgage, now among the most popular. In 2013, 82 per cent of new mortgages were fixed rate terms, according to the Canadian Association of Accredited Mortgage Professionals.
“We expect long-term rates to rise later this year, which will impact five- and10-year mortgage rates in Canada,” said Benjamin Tal, deputy chief economist at CIBC.
A homeowner who chose a five-year mortgage in 2012 would have paid 2.99 per cent. In 2013, the average was 3.29 per cent. That’s why it’s a good idea to take a look at how you might be affected by higher rates, especially if your mortgage will soon come up for renewal.
The idea is to prepare for the worst, says Robert McLister, editor of Canadian Mortgage Trends.
“At the very least, folks should run a couple of rate hike scenarios through a stress test calculator,” McLister said.
The goal is to ensure you can afford payments at that higher rate come maturity time.
“If the results look ominous given your budget, the time to strategize is now, well before maturity,” he said.
Here are some examples:
If you have a $300,000 mortgage at 3.49 per cent and rates rise by two points at renewal time it will cost you $274 more a month. At $400,000 it’s $365 more per month.
Here are some options if your payments are too high for you to carry at renewal:
Refinance: If you have to, extend the amortization. If you’ve worked it down to 20 years, say, increase it. This option generally requires at least 20 per cent equity in the home and it means you’ll be increasing your interest bill over the life of the mortgage. It’s a last-ditch thing to do, McLister says, but “it’s better than defaulting on your mortgage.”
Take a payment vacation: Some mortgages have a skip-a-payment feature. This is an alternative to extending your amortization.
Go shorter: Choose a shorter term with a lower interest rate and payment. That assumes you can handle the risk of rising rates when it comes time to renew again, but if you’re having cash flow problems, there’s a good chance you can’t.
Downsize: A last resort, maybe. But consider selling or renting out a portion of your home.
McLister says that if you find yourself in this position then maybe it’s time to sell and avoid the stress.
“If your budget is stretched, something will happen to stretch it further. It’s Murphy’s Law of borrowing,” he said.
While long-term interest rates may finally head up this year, the Bank of Canada remains committed to keeping short-term rates low. As the spread between long- and short-term interest rates widens, variable rate mortgages become more attractive.
“When long-term rates rise, more and more people look at variable rate mortgages,” said Tal.
For the past five years, the Fed has been buying U.S. Treasury bonds every month by creating the money. It writes a cheque to buy the bonds which has expanded consumer credit, making it cheaper to borrow money.
The impact of the Fed’s action on Canadian homeowners is a gradual increase in long-term mortgage rates. This includes the five-year fixed rate mortgage, now among the most popular. In 2013, 82 per cent of new mortgages were fixed rate terms, according to the Canadian Association of Accredited Mortgage Professionals.
“We expect long-term rates to rise later this year, which will impact five- and10-year mortgage rates in Canada,” said Benjamin Tal, deputy chief economist at CIBC.
A homeowner who chose a five-year mortgage in 2012 would have paid 2.99 per cent. In 2013, the average was 3.29 per cent. That’s why it’s a good idea to take a look at how you might be affected by higher rates, especially if your mortgage will soon come up for renewal.
The idea is to prepare for the worst, says Robert McLister, editor of Canadian Mortgage Trends.
“At the very least, folks should run a couple of rate hike scenarios through a stress test calculator,” McLister said.
The goal is to ensure you can afford payments at that higher rate come maturity time.
“If the results look ominous given your budget, the time to strategize is now, well before maturity,” he said.
Here are some examples:
If you have a $300,000 mortgage at 3.49 per cent and rates rise by two points at renewal time it will cost you $274 more a month. At $400,000 it’s $365 more per month.
Here are some options if your payments are too high for you to carry at renewal:
Refinance: If you have to, extend the amortization. If you’ve worked it down to 20 years, say, increase it. This option generally requires at least 20 per cent equity in the home and it means you’ll be increasing your interest bill over the life of the mortgage. It’s a last-ditch thing to do, McLister says, but “it’s better than defaulting on your mortgage.”
Take a payment vacation: Some mortgages have a skip-a-payment feature. This is an alternative to extending your amortization.
Go shorter: Choose a shorter term with a lower interest rate and payment. That assumes you can handle the risk of rising rates when it comes time to renew again, but if you’re having cash flow problems, there’s a good chance you can’t.
Downsize: A last resort, maybe. But consider selling or renting out a portion of your home.
McLister says that if you find yourself in this position then maybe it’s time to sell and avoid the stress.
“If your budget is stretched, something will happen to stretch it further. It’s Murphy’s Law of borrowing,” he said.
While long-term interest rates may finally head up this year, the Bank of Canada remains committed to keeping short-term rates low. As the spread between long- and short-term interest rates widens, variable rate mortgages become more attractive.
“When long-term rates rise, more and more people look at variable rate mortgages,” said Tal.
How Canadians Budgeting For Higher Mortgages? Don’t Know or Care?
I haven’t been blogging much, nearly everything I do is on Twitter now. It’s pretty amazing how writing in 140 character intervals forces you to the core of your argument. Nevertheless I occasionally want to have a long rant so here we are.
How are Canadians budgeting these days? Like many countries there is a huge culture of home ownership in Canada. It makes for a great new facebook pic that unofficially says you’ve ‘made-it’.
There are two issues that are very concerning for home buyers. First off, you have what I’m very confident is a real estate bubble in Canada. This has been discussed on this site since it was started and more recently in the media. That being said, the media focuses mainly on the condo bubble. Indeed I agree that condos are the most overvalued but much like the real estate bubble in the US which started with ‘just sub-prime borrowers’ a large correction in real estate prices will effect the entire sector.
We’ve all heard this argument a million times and I’m not going to bring it any further today. Its my opinion, I’ve presented my facts and if you disagree with my conclusion that’s cool.
But back to the story, maybe you don’t care about what your house is worth in 2, 10 or 20 years, you are just buying it for pride of ownership. Again, that’s cool, not my cup of tea when it comes to your biggest investment, but my question is; how are people budgeting this?
There is a huge difference between the US and Canada in terms of mortgages. In the US, the standard government backed mortgage is a 30 year fixed. You can perfectly budget your mortgage expense over 3 decades. I won’t even mention other benefits such as writing off part of the payments. In Canada, our government backed mortgage is traditionally a 25 year mortgage, fixed for 5 years.
So Canadians really have no clue what their mortgage payment will be in 5 years. With record low interest rates, it’s not hard to imagine them reverting to a more normalized level. What happens if your mortgage payment doubles? (or worse), let alone if we have a recession and a big jump in unemployment. This is the problem with the ‘no bubble crowd’ which cite the current relatively low debt service ratios as evidence of appropriate real estate prices. Yes, service ratios are good now, with today’s economy and low interest rates. The problem is a mortgage lasts for 25 years and credit conditions shouldn’t be judged on today’s economic variables remaining constant for decades to come.
So How Are Canadians Budgeting For Higher Mortgage Costs? Well I did some boots on the ground research. I’m 28 and more and more of my friends are making the big switch from renting to buying. I’ve asked them about this and I get very similar responses on Canadian real estate.
Real estate will always go up (recency bias).
Renting is wasting your money (they need to factor in potential capital losses and hidden costs of home ownership).
The bank approved me for this mortgage, therefore I can afford it (don’t let the bank’s poor decision making determine your own).
And in terms of what happens when they have to renew their mortgage in 5 years? Well I usually get a blank look and then something like “I never really thought about that”.
So there is your answer, Canadians don’t know and and don’t really care about future mortgage payments and housing prices. They are budgeting based on today’s current rates and happy to have their own place. They are busy with work and the every day problems that come with life. They are not economists and don’t spend their day thinking about income ratios and where interest rates will be in 5 years. I understand this way of thinking, but given the magnitude of the financial commitment, I’m nervous for them.
End of story, Canadians are extremely exposed to higher interest rates and its low on their list of worries.
How are Canadians budgeting these days? Like many countries there is a huge culture of home ownership in Canada. It makes for a great new facebook pic that unofficially says you’ve ‘made-it’.
There are two issues that are very concerning for home buyers. First off, you have what I’m very confident is a real estate bubble in Canada. This has been discussed on this site since it was started and more recently in the media. That being said, the media focuses mainly on the condo bubble. Indeed I agree that condos are the most overvalued but much like the real estate bubble in the US which started with ‘just sub-prime borrowers’ a large correction in real estate prices will effect the entire sector.
We’ve all heard this argument a million times and I’m not going to bring it any further today. Its my opinion, I’ve presented my facts and if you disagree with my conclusion that’s cool.
But back to the story, maybe you don’t care about what your house is worth in 2, 10 or 20 years, you are just buying it for pride of ownership. Again, that’s cool, not my cup of tea when it comes to your biggest investment, but my question is; how are people budgeting this?
There is a huge difference between the US and Canada in terms of mortgages. In the US, the standard government backed mortgage is a 30 year fixed. You can perfectly budget your mortgage expense over 3 decades. I won’t even mention other benefits such as writing off part of the payments. In Canada, our government backed mortgage is traditionally a 25 year mortgage, fixed for 5 years.
So Canadians really have no clue what their mortgage payment will be in 5 years. With record low interest rates, it’s not hard to imagine them reverting to a more normalized level. What happens if your mortgage payment doubles? (or worse), let alone if we have a recession and a big jump in unemployment. This is the problem with the ‘no bubble crowd’ which cite the current relatively low debt service ratios as evidence of appropriate real estate prices. Yes, service ratios are good now, with today’s economy and low interest rates. The problem is a mortgage lasts for 25 years and credit conditions shouldn’t be judged on today’s economic variables remaining constant for decades to come.
So How Are Canadians Budgeting For Higher Mortgage Costs? Well I did some boots on the ground research. I’m 28 and more and more of my friends are making the big switch from renting to buying. I’ve asked them about this and I get very similar responses on Canadian real estate.
Real estate will always go up (recency bias).
Renting is wasting your money (they need to factor in potential capital losses and hidden costs of home ownership).
The bank approved me for this mortgage, therefore I can afford it (don’t let the bank’s poor decision making determine your own).
And in terms of what happens when they have to renew their mortgage in 5 years? Well I usually get a blank look and then something like “I never really thought about that”.
So there is your answer, Canadians don’t know and and don’t really care about future mortgage payments and housing prices. They are budgeting based on today’s current rates and happy to have their own place. They are busy with work and the every day problems that come with life. They are not economists and don’t spend their day thinking about income ratios and where interest rates will be in 5 years. I understand this way of thinking, but given the magnitude of the financial commitment, I’m nervous for them.
End of story, Canadians are extremely exposed to higher interest rates and its low on their list of worries.
How Does Your Mortgage Compare?
A new study by the Canadian Association of Accredited Mortgage Professionals details the state of homeownership, mortgage debt and more.
Close to four in 10 Canadians carrying a home mortgage took extra steps to pay down what they owe this year, according to new research released yesterday by the Canadian Association of Accredited Mortgage Professionals (CAAMP). “Our study shows that 38% of Canadians made some additional payments on their mortgages,” said Jim Murphy, president and chief executive officer of CAAMP in an interview with me yesterday. “They increased their payment, increased their frequency or made a lump-sum payment.”
Sixteen per cent reported increasing the amount they paid (over and above their minimum monthly payment), 17% made an additional lump-sum payment and 8% increased the frequency of their payments. Thirty-eight per cent said they did one or more of these.
The report is a treasure trove of data on what Canadians owe, the terms they've negotiated on their mortgages and more. Seven highlights:
Policymakers face a well-publicized dilemma. Steps have been taken to discourage Canadians from taking on too much mortgage debt. At the same time, Ottawa is trying not to stifle economic growth.
“One of the reasons the Canadian economy is slowing is that housing is not contributing as much as it used to,” said Murphy. “Every new condominium is worth about 1.5 jobs. Every new low-rise property is worth about two jobs. We’ve already had a 10 to 15% drop in housing starts. And we’re going to see less activity because new sales are down. So the economic contribution of housing is going to be even less.”
Close to four in 10 Canadians carrying a home mortgage took extra steps to pay down what they owe this year, according to new research released yesterday by the Canadian Association of Accredited Mortgage Professionals (CAAMP). “Our study shows that 38% of Canadians made some additional payments on their mortgages,” said Jim Murphy, president and chief executive officer of CAAMP in an interview with me yesterday. “They increased their payment, increased their frequency or made a lump-sum payment.”
Sixteen per cent reported increasing the amount they paid (over and above their minimum monthly payment), 17% made an additional lump-sum payment and 8% increased the frequency of their payments. Thirty-eight per cent said they did one or more of these.
The report is a treasure trove of data on what Canadians owe, the terms they've negotiated on their mortgages and more. Seven highlights:
- Canadians went fixed rate this year. No less than 82% of new mortgages signed between January and October 2013 (when the study was conducted) were fixed rate. Variable and adjustable rate mortgages were issued to 9%. The same percentage went with combination mortgages. Among those who refinanced or renewed, 66% went fixed rate, 24% went variable or adjustable rate and 10% went with a combination.
- Almost four million homeowners are mortgage-free. There are a little more than 9.5 million homeowners across the country. Almost 60% – 5.6 million – carry a mortgage and 3.9 million don’t.
- Home Equity Lines of Credit (HELOC) remain popular. Almost a quarter – 2.3 million – of Canadian homeowners have a HELOC. Among those with mortgages, 1.7 million owe money on a HELOC. Among those without mortgages, the figure is 650,000.
- We’re taking equity out of our homes. More than one million homeowners took some amount of equity out of their home this year. Canadians added roughly $36 billion to their mortgages and $23 billion to their HELOCs.
- On average, Canadians own about two-thirds of their homes. The average equity position is 66%, according to a CAAMP estimate.
- Ottawa’s 25-year limit is having an effect. The maximum amortization period for an insured mortgage has been 25 years since July 2012. So it is no surprise that 81% of homeowners carry a mortgage with an original contracted period of 25 years or less. The average amortization period is 21.8 years.
- Canadians are taking advantage of lower rates. Relative to all mortgages, Canadians who signed a new mortgage or renewed their mortgage this year have done better than the national average. The average fixed rate issued this year was 3.65% (3.18% for 2013 purchases; 3.17% for 2013 renewals). The average variable or adjustable rate was 3.05% (2.85% for purchases; 3.21% for renewals). And the average combination rate was 3.7% (4.19% for purchases; 3.54% for renewals). About 1.5 million Canadians renewed their mortgage this year.
Policymakers face a well-publicized dilemma. Steps have been taken to discourage Canadians from taking on too much mortgage debt. At the same time, Ottawa is trying not to stifle economic growth.
“One of the reasons the Canadian economy is slowing is that housing is not contributing as much as it used to,” said Murphy. “Every new condominium is worth about 1.5 jobs. Every new low-rise property is worth about two jobs. We’ve already had a 10 to 15% drop in housing starts. And we’re going to see less activity because new sales are down. So the economic contribution of housing is going to be even less.”
Choosing the Perfect Mortgage Broker Canada – A Guide
Choosing the mortgage plan involves a lot many factors. There are numerous aspects to consider and approach a mortgage suitable for you. But most importantly, a mortgage broker is the right person to guide you. He/she is single-handedly the most crucial part of any mortgage plans you have. Here is a guide to choosing the right mortgage broker Canada.
Importance of Mortgage Broker
When you say home loans, good mortgage brokers are the next word that springs to mind. They can assist potential home buyers in securing the lowest mortgage rates in Canada. Also, they are the link between homeowners and lenders. When you are out looking for the banks or lenders, they can connect you directly to such large institutions. They will also help negotiate the rates and provide a host of other mortgage related services.
Steps to hiring a Broker
Understand the Advertised Service: Before you hire a broker, understand all the services that he/she offers. They act as a link between the lenders and the borrowers, helping the latter avail a loan at the lowest interest rates. Their function is to search and match the best possible lenders with the suitable homeowners. They work through a huge network of brokers in the mortgage industry. The advertised service should be inquired into deeply before involving them into the mortgage.
Where to Search: Yes, Google is the most important search platform. But there are other ways as well. Begin by contacting your area’s real estate boards. They maintain a comprehensive list of qualified mortgage brokers Brampton. Consult another potential buyer and match his/her list with yours. Match and rate them according to the past track record. Friends, family and professional network must also be scourged for to fund the appropriate broker.
Research Phase: Just like you will research for the mortgage plans, do the same for broker as well. To find a good candidate, check all the aspects related to mortgage industry. Check the brokerage license and other relevant licensing requirements. Inquire into other background information about the broker. You can also visit local business unions/bureaus to check for past complaints filed against them. Read online reviews and testimonials from former clients.
Interview: Arrange a face-to-face meeting with all the potential mortgage brokers in Brampton. Ask everything about the services and the blueprint for mortgage. Get the commission rates in writing. Check the mortgage sector knowledge of the individual. Ask about the current market conditions, available loan programs, Canadian housing sector etc. Inquire about the contact of the potential broker and whether he can help you secure a loan from unconventional lenders. A good broker usually works beyond the traditional banking circle.
Discuss Your case: Only a good broker will listen to your case in detail. Share your condition and potential roadblocks. Make sure that a mortgage broker understands your case fully.
Selection: After narrowing down your options, choose someone who understands your loan application well. Get everything in detail and start the mortgage application process Canada.
Most homeowners have a tendency to sit back and relax after selecting the mortgage broker. Be involved in the entire process. A good mortgage broker Canada will stay in touch with the client regarding every stage of the application process. Happy mortgage hunting!
Importance of Mortgage Broker
When you say home loans, good mortgage brokers are the next word that springs to mind. They can assist potential home buyers in securing the lowest mortgage rates in Canada. Also, they are the link between homeowners and lenders. When you are out looking for the banks or lenders, they can connect you directly to such large institutions. They will also help negotiate the rates and provide a host of other mortgage related services.
Steps to hiring a Broker
Understand the Advertised Service: Before you hire a broker, understand all the services that he/she offers. They act as a link between the lenders and the borrowers, helping the latter avail a loan at the lowest interest rates. Their function is to search and match the best possible lenders with the suitable homeowners. They work through a huge network of brokers in the mortgage industry. The advertised service should be inquired into deeply before involving them into the mortgage.
Where to Search: Yes, Google is the most important search platform. But there are other ways as well. Begin by contacting your area’s real estate boards. They maintain a comprehensive list of qualified mortgage brokers Brampton. Consult another potential buyer and match his/her list with yours. Match and rate them according to the past track record. Friends, family and professional network must also be scourged for to fund the appropriate broker.
Research Phase: Just like you will research for the mortgage plans, do the same for broker as well. To find a good candidate, check all the aspects related to mortgage industry. Check the brokerage license and other relevant licensing requirements. Inquire into other background information about the broker. You can also visit local business unions/bureaus to check for past complaints filed against them. Read online reviews and testimonials from former clients.
Interview: Arrange a face-to-face meeting with all the potential mortgage brokers in Brampton. Ask everything about the services and the blueprint for mortgage. Get the commission rates in writing. Check the mortgage sector knowledge of the individual. Ask about the current market conditions, available loan programs, Canadian housing sector etc. Inquire about the contact of the potential broker and whether he can help you secure a loan from unconventional lenders. A good broker usually works beyond the traditional banking circle.
Discuss Your case: Only a good broker will listen to your case in detail. Share your condition and potential roadblocks. Make sure that a mortgage broker understands your case fully.
Selection: After narrowing down your options, choose someone who understands your loan application well. Get everything in detail and start the mortgage application process Canada.
Most homeowners have a tendency to sit back and relax after selecting the mortgage broker. Be involved in the entire process. A good mortgage broker Canada will stay in touch with the client regarding every stage of the application process. Happy mortgage hunting!
The Benefit In Dealing Mortgage Broker/Agent: One Inquiry
As a mortgage broker/agent, we can use the same inquiry to shop for the best mortgage lender for you. If you shop on your own, too many inquiries will flag you as a potential credit risk, and end up lowering your credit score.
CREDIT SCORE BOOT CAMP: BOOST YOUR CREDIT SCORE FAST!
So may be you let a few bills slide when things were tight. Or maybe you haven’t seen a zero balance on your credit card in longer than you can remember. Then there was that temporary line of credit … that somehow became permanent. It’s amazing how many things we do that weaken our credit score.
A low credit score can prevent you from getting the lowest mortgage rate, or even from getting a mortgage at all. Sometimes, that’s how we first discover there’s a problem. That’s why it’s so important to stay on top of your obligations.
A few missed bills and a sky-high credit card balance could send your score plummeting – and your lending costs soaring. The good news is that there are lots of things you can do to whip your credit score into shape.
Whether you’re looking at buying your first home, thinking of your next mortgage, or just looking for ways to improve your financial fitness – take the time to put yourself through the paces!
GET YOUR CREDIT REPORT : SEE WHAT YOUR LENDER SEES
You might think that lenders make decisions based on some intricate financial calculation. In fact, lenders can easily pull up your credit report and see your credit score, which is based on how well you pay your bills on time, how much debt you’re carrying, how long your credit history is, your pursuit of new credit, and the types of credit you have.
If you’re going to whip your credit score into shape, you’ll want to know what you’re working with. Get a copy of your report and see what your lender sees.
Credit reports can be ordered for free through the mail, or for a small fee you can download your credit report – and your score – online. Scores range from 300 to 900. You’ll want to target a score of 650 to 680 or higher to access the best credit rates and terms.
First, check your credit report carefully for any errors. If you spot a problem, contact the agency immediately to have the issue corrected.
Next, look carefully at the factors that are pulling your score down. It takes some time – and some good habits – to build up a low score, but you can probably boost your score by several points fairly quickly by addressing your top credit issues.
PAY THE BILLS ON TIME: YOU’LL NEED A FOOL-PROOF SYSTEM
The single biggest factor in your credit score is having a timely bill payment history. Credit agencies keep track of every late payment. And each one impacts your score. The good news is that recent late payments are factored more heavily than old ones: so you can start today with a commitment to NEVER let a bill get past due. In as little as six months, you’ll look more credit worthy to a lender. The longer your “good” history is, the higher your score.
The hardest hits on your credit score are bankruptcies or accounts that have been sent to collections. Even for a small amount – and even if it is in dispute – being “sent to collections” will create a serious, long-term stain on your credit reputation. Don’t let it happen.
Develop a fool-proof system for bill paying. It doesn't have to be elaborate. Put your bills on an automatic payment plan. Or take an inexpensive monthly calendar and make it your “bill tracker”. As bills come in, mark the amounts and due dates on the calendar. Be sure to pay at least the minimum required amount (more or all if you can!) a few days ahead of time – as it can take time to process payments!
MANAGE YOUR CREDIT CARDS WEEKLY: SHOW YOUR CREDIT WORTHINESS!
Many people make the mistake of rushing to cancel credit cards – in an effort to improve their credit score. Bad idea. High balances are the problem – and your credit score is based on your balances relative to your available credit. Those cancelled cards represented “available credit”- so cancelling then could actually hurt your score!
Ideally, you would have a few credit cards with reasonable interest rates, and you would use them regularly and pay them off promptly. Look at your credit care limits, and calculate what 30% of your limit would be. Consider that your upper spending limit and stay within it. Same goes for any lines of credit. Follow the 30% rule and stay on top of payments.
Paying down your debts to under 30% is a great way to boost your credit score. If you need to carry a balance, it’s better to be below the limit on one more than one card, than at or over the limit on one card.
BUILD CREDIT HISTORY: ALWAYS KEEP YOUR OLDEST CREDIT CARD.
Wasn't it exciting? Your first credit card? For most of us, it was our introduction to the real financial world: the privilege of borrowing, and the responsibility to pay back.
Perhaps you've changed your financial institution since you got that first credit card. Here’s an important piece of advice: keep that credit card. Even if you now do most of your banking with another institution, that old credit card is valuable to your credit score. If you can, you should always keep your oldest card, and use it a little so it remains active. That long credit history is a valuable asset.
Someone who has no credit history is usually viewed as riskier than someone who has credit and manages it responsibly. If you are thinking of cancelling a card, get some advice first, even if you aren't using it.
Simply put, use credit wisely. Keep your oldest card, use it regularly, and keep it paid up-to-date. Remember the 30% rule, and fight hard to get your overall debt to under 30% of your available credit … and keep it there!
PROTECT YOUR CREDIT RECORD: PLAY IT SMART
You know how you’re always asked at the checkout counter: “would you like to apply for our fill-in-the-blank Store Card? You can save $X dollars on your purchase today …”
Don’t do it. These pitches – a common part of the retail experience – are a potential credit pitfall. Applying for these store cards generates a “hard” inquiry that goes on your record, and is visible to lenders looking at your report. Every time you seek credit by applying for a credit card, store card, or loan – you generate a hard inquiry. Too many inquiries will flag you as a potential credit risk because it signals credit desperation. You should keep these to a minimum.
There are exceptions, of course. If you are shopping for a loan or a mortgage, a lender will expect to see a short burst of inquiries against your credit score. It’s best if these happen fairly quickly and around the time of a loan event.
There’s also such a thing as a “soft” inquiry; only you can see these, and they do not impact your score. Potential employers might make an inquiry, for example. And when you check your own credit report, your inquiry is both invisible and irrelevant to your credit score.
Make a habit of checking your credit score each year – and watch how those good credit habits push your credit score skywards!
CREDIT SCORE BOOT CAMP: BOOST YOUR CREDIT SCORE FAST!
So may be you let a few bills slide when things were tight. Or maybe you haven’t seen a zero balance on your credit card in longer than you can remember. Then there was that temporary line of credit … that somehow became permanent. It’s amazing how many things we do that weaken our credit score.
A low credit score can prevent you from getting the lowest mortgage rate, or even from getting a mortgage at all. Sometimes, that’s how we first discover there’s a problem. That’s why it’s so important to stay on top of your obligations.
A few missed bills and a sky-high credit card balance could send your score plummeting – and your lending costs soaring. The good news is that there are lots of things you can do to whip your credit score into shape.
Whether you’re looking at buying your first home, thinking of your next mortgage, or just looking for ways to improve your financial fitness – take the time to put yourself through the paces!
GET YOUR CREDIT REPORT : SEE WHAT YOUR LENDER SEES
You might think that lenders make decisions based on some intricate financial calculation. In fact, lenders can easily pull up your credit report and see your credit score, which is based on how well you pay your bills on time, how much debt you’re carrying, how long your credit history is, your pursuit of new credit, and the types of credit you have.
If you’re going to whip your credit score into shape, you’ll want to know what you’re working with. Get a copy of your report and see what your lender sees.
Credit reports can be ordered for free through the mail, or for a small fee you can download your credit report – and your score – online. Scores range from 300 to 900. You’ll want to target a score of 650 to 680 or higher to access the best credit rates and terms.
First, check your credit report carefully for any errors. If you spot a problem, contact the agency immediately to have the issue corrected.
Next, look carefully at the factors that are pulling your score down. It takes some time – and some good habits – to build up a low score, but you can probably boost your score by several points fairly quickly by addressing your top credit issues.
PAY THE BILLS ON TIME: YOU’LL NEED A FOOL-PROOF SYSTEM
The single biggest factor in your credit score is having a timely bill payment history. Credit agencies keep track of every late payment. And each one impacts your score. The good news is that recent late payments are factored more heavily than old ones: so you can start today with a commitment to NEVER let a bill get past due. In as little as six months, you’ll look more credit worthy to a lender. The longer your “good” history is, the higher your score.
The hardest hits on your credit score are bankruptcies or accounts that have been sent to collections. Even for a small amount – and even if it is in dispute – being “sent to collections” will create a serious, long-term stain on your credit reputation. Don’t let it happen.
Develop a fool-proof system for bill paying. It doesn't have to be elaborate. Put your bills on an automatic payment plan. Or take an inexpensive monthly calendar and make it your “bill tracker”. As bills come in, mark the amounts and due dates on the calendar. Be sure to pay at least the minimum required amount (more or all if you can!) a few days ahead of time – as it can take time to process payments!
MANAGE YOUR CREDIT CARDS WEEKLY: SHOW YOUR CREDIT WORTHINESS!
Many people make the mistake of rushing to cancel credit cards – in an effort to improve their credit score. Bad idea. High balances are the problem – and your credit score is based on your balances relative to your available credit. Those cancelled cards represented “available credit”- so cancelling then could actually hurt your score!
Ideally, you would have a few credit cards with reasonable interest rates, and you would use them regularly and pay them off promptly. Look at your credit care limits, and calculate what 30% of your limit would be. Consider that your upper spending limit and stay within it. Same goes for any lines of credit. Follow the 30% rule and stay on top of payments.
Paying down your debts to under 30% is a great way to boost your credit score. If you need to carry a balance, it’s better to be below the limit on one more than one card, than at or over the limit on one card.
BUILD CREDIT HISTORY: ALWAYS KEEP YOUR OLDEST CREDIT CARD.
Wasn't it exciting? Your first credit card? For most of us, it was our introduction to the real financial world: the privilege of borrowing, and the responsibility to pay back.
Perhaps you've changed your financial institution since you got that first credit card. Here’s an important piece of advice: keep that credit card. Even if you now do most of your banking with another institution, that old credit card is valuable to your credit score. If you can, you should always keep your oldest card, and use it a little so it remains active. That long credit history is a valuable asset.
Someone who has no credit history is usually viewed as riskier than someone who has credit and manages it responsibly. If you are thinking of cancelling a card, get some advice first, even if you aren't using it.
Simply put, use credit wisely. Keep your oldest card, use it regularly, and keep it paid up-to-date. Remember the 30% rule, and fight hard to get your overall debt to under 30% of your available credit … and keep it there!
PROTECT YOUR CREDIT RECORD: PLAY IT SMART
You know how you’re always asked at the checkout counter: “would you like to apply for our fill-in-the-blank Store Card? You can save $X dollars on your purchase today …”
Don’t do it. These pitches – a common part of the retail experience – are a potential credit pitfall. Applying for these store cards generates a “hard” inquiry that goes on your record, and is visible to lenders looking at your report. Every time you seek credit by applying for a credit card, store card, or loan – you generate a hard inquiry. Too many inquiries will flag you as a potential credit risk because it signals credit desperation. You should keep these to a minimum.
There are exceptions, of course. If you are shopping for a loan or a mortgage, a lender will expect to see a short burst of inquiries against your credit score. It’s best if these happen fairly quickly and around the time of a loan event.
There’s also such a thing as a “soft” inquiry; only you can see these, and they do not impact your score. Potential employers might make an inquiry, for example. And when you check your own credit report, your inquiry is both invisible and irrelevant to your credit score.
Make a habit of checking your credit score each year – and watch how those good credit habits push your credit score skywards!
Subscribe to:
Posts (Atom)