Do you have too much debt? Are monthly credit card debt and installment loans getting in the way of your financial goals? Then consolidating your bills into one easy payment is the right option for you. If you are a home owner you can qualify to consolidate all your high interest credit card and installment debts into one loan at a fraction of the interest rate. debt Consolidation loans are the best way to use your home as leverage towards becoming debt free!
When comparing Revolving Debt (Credit Cards and Line of Credits) vs. Installment loans (Mortgages, vehicle loans, personal loans etc.) people need to understand that revolving debt does NOT carry a term, where an installment loan has a fixed payment and term ex. 48 months therefore the loan is over when it is said to be over.
ex. John Smith has credit card debt of $5000, the rule of thumb when you apply for a mortgage is that they use 3% of your current balance to determine your minimum monthly payments which is usually what you see on your bill. Therefore, John has a monthly payment of $150 which does not bring his balance down nor will his term end, so then John can be paying $150 a month for the rest of his life because revolving debt does NOT carry a term. If John consolidates his debt into a Home Equity or Second Mortgage he can put that $150 dollars into the loan where he knows when it will be paid off at the fraction of the interest rate of the credit cards.
There seems to be a common misconception that putting a lien on your home, taking out a Home Equity loan or a Second Mortgage is deemed negative and is frowned upon. More and more homeowners are using the equity in their homes as financial leverage to accommodate their lifestyle and budgets. Don’t be afraid of using the equity in your home; you have worked hard for your home, now have your home work for you by getting a home refinance today!
Debt Consolidation Loans
Breathe easier with lower monthly payments, lower interest rates and have the security knowing that your debt will be over when it says it will be over; you can start planning your future by clicking below. Our XPX.ca Mortgage Broker / Specialists have lenders who can lend up to 100% of the value of your home. Contact our XPX.ca Mortgage Specialists and let them know you want to start a consolidation loan using the equity in your home now!
Do you have credit problems? Here is some information to help you increase your credit score and give yourself leverage when applying for a mortgage. Excellent credit scores opens many doors in your lifetime with benefits such as saving money(by getting the best interest rate for your mortgage), getting a mortgage with no down payment (zero down), having more lenders to choose from and your freedom to endless financial possibilities. Below are some quick tips on how you can improve your credit score and prepare for a mortgage.
There are two major companies who hold your credit reports are Equifax and TransUnion.
Credit scores range from 300-900 (you need at least a 680 to qualify for the “zero down” mortgages, as these are CMHC and Genworth’s criterias).
Payment History is worth 35% of your total score. Be sure to make payments on time, the longer past due, the lower the score. Frequency is also a factor, the number of times you are late. This also applies to bankruptcies, liens and judgements.
Amounts Owed is worth 30% of your score. Are you maxed out on all your credit cards? If you don’t want to have this affecting you then be sure to use only 75% of your credit limit. If your limit is $5000 don’t use more than $3750 or it will affect your score.
Length of Credit History is worth 15% of your score. How long have you had your loan/credit card for? Have you been using your credit cards recently?
New Credit is worth 10% of your score. Make sure you do not apply for credit too often. Newly activated accounts may lower your score. Also, make sure you do NOT have your credit checked too many times. This will lower your score. They want to make sure you are not living beyond your means.
Types of Credit you use are worth 10% of your score. Watch out if you have several credit cards with high limits. This could mean that at anytime you can max these out and have financial hardship, because unlike installment loans, you do not need re-approval to reach the maximum limit. NOTE: If you are the person who likes paying with cash, make sure you use your credit card at least once a month to boost your credit score.
XPX.ca Mortgage Specialists
For further guidance, needs analysis or to book a no-charge consultation please fill out this form below. One of our XPX.ca Mortgage Broker / Specialists will be glad to help as we often deal with credit counseling everyday. (If you would just like a copy of your credit report, please state this in comments section and just fill out the required fields)
The day you complete the sale and take possession of your new home is most exciting. To make it go as smoothly as possible, there are a number of things you should do in the weeks before the big day. In addition to securing your mortgage and providing necessary documents to your lawyer, make sure you satisfy any requirements and conditions in the Agreement of Purchase and Sale.
Other key steps:
1. If you rent, cancel your lease or sublet your premises.
2. Arrange for insurance to take effect on closing and forward the necessary documents to your lawyer. You’ll likely want to insure the value of the building on a replacement-cost basis.
3. Either your builder or your lawyer will advise utilities(water, gas and hydro) of your date of possession, but you’ll have to call to start service.
4. Of course, there’s packing and moving. Best to arrange for the mover as early as possible and leave lots of time to pack. If there’s anything you’ll need right away, such as a crib, load it last so that it will come out first.
5. Don’t forget to change your address - not just with friends but on subscriptions, driver’s licenses and ownerships, health insurance and credit cards.
Pre-Deliver Inspection
When your new house or condo is substantially complete, your builder will give you an opportunity to become familiar with it and check for defective, damaged or missiing items. Do this inspection before you move in.
This is also when you’ll learn about the operation and maintenance of your home’s mechanical systems. Reviewing how to operate all of the new home’s sophisticated systems will not only allow you to fully enjoy them but will help ensure you understand yo9ur warranties.
This is not the time to show off your new home to family or friends-in fact, your builder may have a policy against bringing others along. This is a time to pay close attention to detail. You’ll be looking around inside and outside. It’s still a construction site, so dress appropriately (hart had and work boots).
Before the inspection, refresh your memory about any special features, colour selections or changes you’ve made so you can ensure that extras and upgrades have been approprately installed. There’s a handy home inspection checklist on that you can download here at Xpress Property Xchange (XPX.ca)
In general, you’ll go through every room in the home and around the exterior. You’ll want to inspect closely the surfaces of counters, floors, fixtures and walls. If any defects are found later, it will be difficult to determine whether they existed before you moved in.
At the end of your inspection, you’ll be asked to sign the Certificate of Completion and Possession and you’ll receive a copy of the Tarion Homeowner Information Package, which explains the comprehensive warranty provided by your builder and guaranteed by Tarion Warranty Corp. It also details the process to report any other items once you have moved in. Tarion also insures deposits, protects against delayed closings without proper notice and handles other such matters.
The Big Day
The day they hand you the keys is also the day you hand your lawyer the balance of the purchase price and the day the bank turns over the mortgage money. It will be hectic, but try to enjoy this milestone! Owning your own home is the dream of most Canadians, Congratulations!
