Equifax VS Transunion. Whats the Difference? Equifax and Transunion are the 2 credit reporting agencies in Canada, used by lenders to assist with the qualifications of your new mortgage. Equifax is the most common to be used by lenders, when looking to grant credit. When a person is trying to get approved for a mortgage the average of both will usually be used. When trying to apply for car loans or bad credit car loans most lenders will use Equifax.

What I do know is credit granting companies have the option to who they wish to report to as a primary. When lenders choose who they want to report to as a primary, they will take a lot of items into consideration like cost to report, amount of clients they are reporting on(monthly), most common bureau, and effectiveness of the reporting. As a lender reporting, we know that Transunion requires fewer reported files on a monthly basis.

What does this information mean to a client, probably very little. It may be best to use Transunion when a client is from the Eastern side of Canada, as I believe it will give me more accurate information. As a client you should be made aware that your 2 bureaus will not be the same. From what I have found with my own bureau, and clients bureaus, almost 0 percent have been the same. I believe that a person should know where both of their bureaus are at all times.

This will allow a client to know that they have not been reported incorrectly on either bureau( in regards to identity theft). It is very common for 1 bureau to have a trade line reporting, and the other bureau not showing that exact trade line.

I have also found that if a trade line has been cancelled by consumer or credit granter, that trade line might show on 1 bureau and not the other. Both Bureaus have a completely different format and different reporting codes. Please keep in mind that both bureau use a different reporting formula.

The report contains more mortgage data than virtually any other in Canada. Its data tells an intriguing story of the year that’s about to pass.

Here are some key statistics from the survey: • Brokers currently hold 28% market share in Canada – up 3% in just one year

• 40% of all new mortgages were obtained through a mortgage broker

• 44% of consumers surveyed have a good understanding of what mortgage brokers do – up from 33% three years ago

• Top 5 Reasons for Using a Broker: best rate, multiple quotes, research expertise, help understanding options & process, and paperwork.

• 54% very satisfied with rate provided by a broker, while only 43% satisfied with rate provided by a bank

• 41% say they want multiple quotes from a broker, yet only 57% of broker clients report receiving more than one quote

• Top 5 Reasons They Didn’t Use a Broker: easier to deal directly with a lender, don’t want to pay for a broker’s service, don’t want to work with an unfamiliar lender, didn’t think about it, and don’t want to switch lenders

Three years ago, 5% down mortgages were extremely flexible. Today they are not. Before you could refinance and pull out extra equity up to 95% loan to value. Today it’s a maximum of 80% loan to value.

The funny thing is, you are still paying the same high ratio CMHC fees as you did when you had that flexibility. The only other way to get access to extra funds is to do a “Purchase + Improvement” program. If you know you are purchasing a property that can be renovated, you might as well get the bank to finance it instead of paying with a PLC or, out of your pocket.

BUT, YOU NEED TO PLAN FOR THIS WHEN APPLYING FOR YOUR MORTGAGE, NOT AFTER. If you want to renovate your property after receiving the mortgage, the bank will not have the power to increase your mortgage amount. Reply to this newsletter and let me help you plan for those renovations.

On average, CMHC has no issues lending out an extra 10% for renovations. For a $500k purchase, that’s an extra 50k for reno’s. For the best mortgage rates , service , and knowledge about mortgage related questions call Us anytime

• What $390,000 Will Buy You Across The Country The average price of a house in Canada in the fall of 2013 was about $390,000. Here’s what that amount will buy you in the country’s various real estate markets. Trois-Rivieres is one of the most affordable housing markets in Canada, and here the average house price will get you something close to a palace. Three bedrooms and some pretty awesomely fitted-out bathrooms in this 2,000-square-foot home. This 580-square-foot cottage is located in Toronto’s inner east end and has one bedroom on the main floor and a second in the basement. It may be small, but it’s actually sort of remarkable that you can still buy a standalone house anywhere in the 416 for under $400,000. Listed at $389,000. This custom-built split-level house on the east side of Regina has 1,800 square feet of floor space, and features a family with room with a fireplace. At 548 square feet, this loft condo is only slightly smaller than that cottage in Toronto. But it’s certainly slicker; it’s located in yuppie-ish Yaletown and features a stainless-steel appliance kitchen with a movable island. Listed for $384,000. $388,000 will get you this house with four bedrooms and as many fireplaces in charming little Summerside (PEI). A whopping 4,464 square feet of floor space on a half-acre lot makes this easily the largest home on this list. Fort McMurray, the heart of Alberta’s oilsands, may be a small city, but thanks to enormous oil business salaries, it has real estate prices like a big city. This two-bedroom condo on the south side of town features oak cabinets and a gas fireplace, and lists for $393,500. According to the CMHC, the average price for a two-bedroom apartment across the country was $920 in October, up 2.5 per cent over the past year. Vancouver had the priciest market in the country, with two-bedroom apartments going for $1,281, beating out second-place Calgary, where two-bedrooms went for $1,224 on average. Toronto came in third, at $1,213. A decade ago, Toronto rents were the highest in the country and about 8 per cent higher than second-place Vancouver. Toronto’s booming condo market could explain some of the relative weakness in rental rates. With condos coming online at a faster clip than population growth, the supply of apartment housing in Toronto has been increasing.

A Client Turned down by his Bank is approved by darick.ca at best rate today. We researched 10 lenders offering the lowest 5 year rate and found two that were willing to work with the clients debt load to allow him to afford to purchase his new home! CMHC insured, 5% down. The client is happy and the realtor is happy! Best mortgage rates in Barrie Best mortgage broker in Barrie www.darick.ca

Why is a Home listed under power of Sale generally priced lower than homes of comparable status.

Generally because the home is sold without warranty and Appraisers will account for this risk when setting a value for the Bank.   Often times this discount is larger in rural areas as the septic and well can account for a potential large expense to the new buyer.

5 year 3.39%

Variable prime less .5%  2.5%

Debt consolidation – $40,000 can carry for as little as $117 per month

Call for a free quote

Looking to consolidate high interest debt into one low payment?  Its easy if you have equity in your home.

The product is called a Home Equity Line of Credit, or HELOC for short.

Because the debt is secured against the home the interest rates that are available are as low as possible and come with interest only payment options if you desire.

It is also an open product allowing you to payoff the debt at your pace.  All at once or spaced out over time.

Once the debt is paid off the HELOC is ready to be used again for any purpose.

Many clients will not only utilize this strategy for debt but they will also use the HELOC to purchase RRSPs, RESP or other investment type strategies.

With ultra low rates it often is an advantage to clients.

for more information call me at our Barrie office on Commerce Park drive 705 797 8811×102

Mortgage penalties are straightforward if you have a variable-rate mortgage – expect to pay the equivalent of three months’ interest in most cases. With a fixed-rate mortgage, the penalty is set at the higher of three months’ interest or a calculation called the interest rate differential, or IRD. The must-ask question when negotiating a fixed-rate mortgage: Do you use discounted or posted rates to calculate these penalties? This is important because using posted rates can result in a much higher penalty. For some real world numbers, let’s use the mortgage prepayment calculators all lenders now provide on their websites. They show penalties for paying all or a portion of your remaining mortgage balance (to find them, Google your lender’s name and “mortgage prepayment calculator”). Let’s use an example of someone who, three years ago, set up a $250,000 five-year mortgage and has a balance owning of $200,000. Assuming an original mortgage rate of 3.64 per cent with a discount of 1.5 percentage points, the mortgage prepayment calculators at several big banks showed penalties ranging from $5,000 to $7,600 or so. A check with some alternative lenders found penalties ranging from $1,800 to $2,800. These are very rough comparisons because lenders differ a fair bit in what information they ask you to supply. But you get the picture – the big banks apply penalties with a sledgehammer. As well as producing revenue for lenders, inflated mortgage penalties also help trap clients who might otherwise move their business to another lender. Imagine you want to refinance your mortgage or buy a bigger home and your bank won’t come across with a competitive rate. You say you’ll change banks, only to find out how prohibitively expensive it is to break your mortgage.

Alternative lenders often have better rates than the big banks, and they typically have cheaper penalty fees. Why do so many people use their banks for mortgages, then?

One of Canada’s largest producing team in the banking channel has chosen to switch to the broker side. In general it is expected to see more mortgage specialists defections next year as high-flyers strike out on their own in order to maximize their commissions in a slowing market.