Mortgage Rules Tighten

Insured Mortgage Rules Change

Mortgage rules are changing, effective July 1, 2020, making it harder to qualify for a CMHC insured mortgage. CMHC just announced that they’re tightening the qualifying rules substantially, reducing buying power once again on mortgages with less than 20% down payment. -Limiting the Gross/Total Debt Servicing (GDS/TDS) ratios to the standard 35/42 (currently 39/44) -A […]

What’s Stopping You from Owning a Home?

Owning a Home

Owning a home is considered to be a rite of passage for many Canadians. It symbolizes independence. You set the rules, make the decisions, take financial responsibility and invest in your future. Renting doesn’t give you much control over the property. You are under the landlord’s mercy when it comes to following rules written in […]

Credit Bureau Breakdown

Credit Bureau Breakdown

Your credit bureau is the track record you’ve established while managing credit and making payments over time. This information reports to the credit bureau and generates a score. Equifax and TransUnion are the two major credit bureau companies in Canada and both have slightly different ways of rating credit scores. Here is the breakdown to […]

Getting Your Mortgage Approval on Track

Mortgage Declined

Just because the timing doesn’t work currently, doesn’t mean you have to lose hope about buying a home. Here are some common reasons people don’t receive mortgage approvals right away and ways to increase their chances of being approved for a mortgage in the future. Start by asking why you didn’t qualify for the mortgage. […]

Ways to Improve Your Credit Score for a Mortgage

Ways to Fix your Credit Score

It is essential to fix issues on your credit bureau before applying for a mortgage. Here are some tips to improve your credit and increase your credit score. The best time to start working on your credit is now, 6-12 months before you apply for a new mortgage. If you’ve had severe credit challenges, it […]

Breaking Down the 5 C’s of Credit

The 5 C's of credit will help determine if you can get a mortgage

To qualify for a mortgage, a borrower needs to meet specific criteria known as the five C’s of credit. This process weighs five characteristics of a borrower and tries to evaluate the likelihood of default on a mortgage loan. The five C’s of credit are capacity, capital, collateral, credit history, and character. Capacity measures a borrower’s ability to make […]

Credit Bureau and Your Mortgage Approval

Credit Score

There are many reasons why a mortgage application can be delayed or even worse, declined. A key tool lenders rely on when identifying any concerns when giving a mortgage approval is your credit bureau. A credit bureau is a history report of collected information from an individual’s borrowing and bill-paying habits. When applying for a […]