Mar 15, 2010...Ontario home equity loan

At Home n Work Mortgages, we have lenders who can take care of your mortgage needs, whether your current credit is good or bad.  We deal with "A" lenders who can offer Alberta home loans to folks with credit scores of 680 and above.  We have "non-conventional" lenders who can offer BC home improvement mortgages to clients with credit scores in the high 500's.  And then we have access to private lenders who can give you a Saskatchewan debt consolidation loan if your credit is poor.  Let us help your today.

Mar 13, 2010...3rd mortgages in Canada..

The standard mortgages in Canada are 1st mortgages and 2nd mortgages.  It is very uncommon that a lender will offer a Canadian 3rd mortgage, because the 3rd position is quite risky compared to being in the first or second position.  But if the loan-to-value percentage is low (ie around 50% - 60%), then we do have a lender who will look at a secured 3rd mortgage.

Mar 3, 2010...no credit, no problem...

Sometimes I get a client who has no credit.  I'm not talking about bad credit.  I'm talking about a person who, throughout their life, has never owned a credit card or taken out a loan.  Conventional Canadian banks and lending institutions won't deal with anyone who doesn't have a good credit history.  But we have a lender who will advance you a 75% mortgage on a purchase, even without a credit history.

Mar 1, 2010...a good appraisal makes a huge difference...

If you are looking for a home equity loan in Canada, make sure that your house looks great for the appraisal.  You'd be surprised at how many times a lender turns down a Canadian equity loan because of a poor appraisal.  And I'm not talking about the value of the property.  I'm referring to the condition of the house.  Lenders like to see pride of ownership.  Appraisals that show messy rooms, untidy kitchens, junky back yards, etc show the lender that you are not taking care of the security that he would be lending on.  So, the bottom line is this.  When getting an appraisal done, make your house look like you are having an "open house".  You will get much better results from the lender.

Feb 16, 2010...Canadian government makes mortgage changes...

The Feds are concerned about Canadian house buyers getting in over their heads, and so they announced new mortgage guidelines that will come into effect on April 19.  Three new guidelines are 1) borrowers need to qualify on a five year mortgage rate versus the current 3 year rate, 2) the maximum percentage for refinancing is 90% of the appraised market value of the the property, and 3) the minimum downpayment for a rental property will now be 20%, versus the current 5%.

Feb 14, 2010...good Canadian makes a big difference...

Many clients come to me and ask "how much of a downpayment do I need" when I am buying a house.  There are a number of factors that come into play (such as income qualification and available cash for a downpayment), but the greatest factor is your credit.  If you have great credit (ie 680 and above), you can probably get away with as little as 5% down to get a Canadian mortgage from a conventional lender.  If your credit is poor, you will need up to 25% down, or more, and you will probably be dealing with a private lender who will have much higher rates than the conventional bank, and there will be lender fees.  So if you are planning on purchasing a house, make sure you pay all of your bills on time for at least a year prior to the purchase.

Feb 4, 2010...do you have enough equity for a Canadian 2nd mortgage...

When you own a Canadian property, and you have a 1st mortgage, you may find the need for some extra cash.  Perhaps you need to pay bills, buy a car or take a vacation.  If you have good credit, a lender may lend you up to 85% of your property value.  If your credit is poor, a lender may only lend up to 75%, or even less if your credit is really poor, or your property is undesirable.  So, keep your credit in good shape, and your house in good repair, and you may be eligible for a high ratio Canadian home equity loan.

Jan 31, 2010...sign your Canadian private lender commitment..

If your credit is damaged, you may have to get your mortgage through a private lender.  If you receive a commitment from a Canadian private lender, you would be advised not to delay too long in signing it.  Some private lenders only have a certain amount of money to lend, and if you delay in signing the commitment (and then following through), the lender may lend the money to another borrower who acts quickly.  And then it may become difficult to replace that private lender with a new private lender.

Jan 23, 2010...co-signing can be dangerous...

Many Canadian folks have good hearts.  Sometimes a family member, friend or relative may wish to buy a car, house, or other asset.  But sometimes their credit or income is not strong enough for the lender.  The lender may ask the borrower for a cosigner, which is a person who agrees to guarantee the loan if the borrower defaults.  The cosigner trusts the borrower to make payments and repay the loan.  But be very careful...as time passes and situations change, you, the cosigner, may find yourself on the hook for full payment.  This can cause great financial pain, as well as black mark on your credit report if you are unable to make the payments.  So if a friend or relative asks you to cosign on a Canada home equity loan, make sure you are aware of the possible consequences.

Jan 14, 2010...new lender to help Canadian borrowers...

Over the last year or so, a number of subprime lenders have left the market place.  A subprime lender is a lender who lends to clients that have less than "good" credit.  This usually translates into credit scores of between 500 and about 640.  A new lender, TD Financing Services, can assist clients who have less than perfect credit, people who own rental properties, low beacon scores and customers that are in a consumer proposal.  Their rates are higher than the conventional bank rates, but lower than going through a private lender.

Jan 7, 2010...understanding collections on the Equifax bureau...

Many clients ask me how "unpaid" collections on the Canadian credit bureau report affect their credit.  I always tell them, an unpaid collection is like a boat anchor.  No matter how hard you try to improve your credit (ie paying your current creditors on time, keeping balances low, etc), unpaid collections will not allow your credit score to rise.  What you need to do is get a copy of your Canada Equifax report, check to see if any creditors have put you into collection, and get them paid off.  The credit bureau will keep the record of your collection on your report for 6 years, but a "paid" collection will allow your credit score to rise, and make you more attractive to potential lenders.