| Wednesday, February 2, 2011
 Shawn Mooney (403) 945-8769 mortgages@shawnmooney.com
AIRDRIE, Alberta (403) 945-8769 | 
Your credit score: Decoded While credit scores seem to be arbitrary, they're actually determined according to a rigid mathematical formula. Every debt, credit card and late payment is weighed differently -- and these weights differ between TransUnion and Equifax. In general, Equifax Canada weighs its components something like this:Payment History -- 35% This typically involves recent payments that are more than 30 days late, as well as any collections, judgements or bankruptcies Outstanding Debt -- 35% This includes the number of creditors owed, credit card balances and allocated limits. A maxed out credit card will have a deeper impact on your credit score than a card with a $200 balance Credit Account History -- 15% This refers to the length of time your accounts have been open. If you've been using a credit card for ten years and have been paying it off on a regular basis, this actually has a positive effect on your overall credit rating Recent Inquiries -- 10% Every time you apply for a loan or credit card, lenders have to access your credit report to see your score and assess your credit worthiness. Too many of these in a 12 month period -- say, if you were shopping around for a mortgage -- can reduce your rating. Types of Credit -- 10% If you have a mix of different types of credit -- including revolving credit, such as credit cards and lines of credit, and installment loans that you pay monthly, such as student loans -- the better your credit picture will be. A little bit more on the new rules... Basically, these new rules affect you if:a) You have, or were planning to get, a 35-year amortization. The maximum amortization available to Canadians, after the new rules take effect, will be 30 years. b) You're planning to refinance your existing mortgage. Previously, you were allowed to refinance up to 90% of the value of your home. That number is now 85%. c) You were planning on acquiring a HELOC (or Home Equity Line of Credit) to complete those home renovations you've been planning. The government has announced that it will no longer insure these mortgages - meaning lenders are going to have to take on the associated risk themselves. Something they may or may not be willing to do, moving forward. While those are the new rules in a nutshell, there were a lot of questions left unanswered with the government's announcement. For example, when will the new rules take effect? According to CMHC, if you submit your application before March 18th, you'll make it in under the deadline - even if the deal in question closes after that date. So if you were thinking about any of the above mortgage products, now's the time to make the move! If you already have an existing 35-year amortization, you're not quite out of the woods. If you plan on moving to a more expensive home in the future - one that will require you to increase the size of your mortgage - you won't be able to keep that 35-year amortization. If you're able to port your mortgage and keep it the exact same amount, you can hold onto the 35-year amortization. As always, if you have any further questions surrounding the new mortgage rules, please feel free to give me a call. If I don't have the answer, I'll be sure to find it for you! Looking to get rid of your unwanted gift cards? If you received a gift card to a store in which you know you'll never set foot, you may want to make a bit of money off of it by checking out CardSwap. The Canadian site is for people looking to sell unwanted gift cards - or buy cards at a discount. The process is quite simple. Sellers post the card at a discounted price (because, if it's a gift, you're still making a profit). Once it's sold, they must drop it in the mail within three days and pay CardSwap a fee of 6% of the selling price. Buyers simply peruse the website, purchase the card that they want via Interac online (no credit cards are accepted), and wait for the card to arrive in the mail. If the card doesn't arrive, or if the balance is different than what was advertised, CardSwap will refund your money. The gift card is guaranteed for 21 days after purchase. Pre-spring cleaning A lot of people wait until spring to give their house a good cleaning and organizing - but why waste those first warm, fresh days of the year cooped up inside? With the days still dark and dismal, and most of your time spent in the house, why not get it in order so you can enjoy it just a little bit more?This article at Apartment Therapy offers five great tips for decluttering your home. While they may seem pretty straight forward, when you and your family are spending plenty of time in the house, it's amazing how quickly it can get messy. Simple reminders - such as 'clean flat surfaces every day' -can prevent the junk from piling up, and keep your home in tip top shape. Maybe your home's problem areas lie in those out-of-sight-out-of-mind places. If your linen closet is driving you nuts, check out this article by Martha Stewart. She has some great ideas to keep your linens in order - such as folding all sheet sets into one pillow case. An under-sink organizer, like this one from Bed, Bath & Beyond can also help with frustration clutter by preventing toiletry and cleaning supply avalanches in the bathroom and kitchen. While curling up with a good book this weekend may sound more appealing than some pre-emptive spring cleaning, just think of how much better you'll feel when the warm weather starts to hit, and your house is already in working order! | |||||||||||||||||||||||||||||||||||||
Thursday, February 3, 2011
February Newsletter
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