33 Proven Ways to Reduce Personal Debt

Making Cents of the Dollars
33 Proven ideas to make your budget work and get your Debt under control:
1. Re-shop auto, home and life insurance to see if you can bring down your payments.
2. Downgrade your cable package, or get rid of it entirely.
3. Disconnect your home phone if you have adequate cell service at your home. Or downgrade to a cheaper package.
4. Buy and sell clothes at your local consignment or shop at Goodwill.
5. Have a massive garage sale. (If you’d rather be out of debt than have an item, choose to sell it to help you get you there.)
6. Advertise higher quality items on Craigslist, Facebook, or your local newspaper to get better prices.
7. Focus on buying mostly sale items at grocery store or generic brands to reduce your cost.
8. Use a grocery store awards program to earn money off gas.
9. Cancel unnecessary expenses like magazine subscriptions, newspapers, manicures, pedicures etc. Anything that could be considered a “want” instead of a “need” should go until you are out of debt or greatly decrease your debt.
10. Go to the matinee movies instead of paying full price (and skip the concessions).
11. Or better yet, use the Red Box for at-home movie entertainment.
12. Get temporary work or seasonal part time work to boost your income.
13. Read books from the library or take a few trips to Barnes & Noble to complete a book.
14. Buy your most expensive groceries in bulk at Coscto: meats, breads, cheese, produce, paper products. Establish a monthly grocery budget for the additional needs at regular grocery stores.
15. When eating out, skip the soft drinks and stick with water. Skip the extras too (dessert, etc.).
16. When eating out, share a large entrée or have small appetizers instead of the costly meal.
17. Plan your errands more efficiently to conserve gas.
18. Find friends that you can trade services with…haircutting, handyman, photography, babysitting, pet-sitting.
19. Give home-made gifts, baked goods, or service IOU’s rather than expensive presents.
20. Boxed cereals are expensive; switch to oatmeal, eggs or fruit for more nutritional and financial bang.
21. Call the utility companies and get on a budget plan to give you more consistency with expenses each month.
22. Set a spending limit with family at Christmas and/or draw names.
23. Use exercise videos, walking or hiking instead of paying for the gym.
24.If your haircut is too expensive, find a less expensive stylist or see if your hairdresser will cut you a break on price temporarily – ours did.
25. Say “no” to hosting and/or attending in-home parties where you feel pressure to purchase.
26. Does your family live nearby? Once a week dinners with mom or dad saved us a meal out of our shopping budget. Additionally, it usually led to leftovers and our parents looked forward to our visit each week.
27. Make your coffee at home instead of buying it each day.
28. Pack your lunch – not once a week, but regularly.
29. Make extra dinner servings on purpose to have leftovers for lunch.
30. Our dentist advised us we could skip the fluoride treatments if we were using a daily dental rinse – which we did… and bought on sale.
31. Program your thermostat for savings on heating/cooling when you’re not at home.
32. Tempted by certain retail stores? While digging out of debt, avoid window shopping these places where you've failed to control your impulses before.
33. Give.

Many may say, “What? I need my manicure!” or “My kids will only eat box cereals!” But trust me. If you are serious about climbing out of debt and changing your life, the only thing you need is a roof over your head, clothes on your back and gas to get to work to bust your way out of this.

Plus, take comfort in knowing that you don’t need to eliminate these things forever. Personally, I look forward to hiring back our housekeeper and treating myself to a few pedicures next summer. But until we are debt free and have a fully funded emergency fund, we’ll be focusing on using the dollars we bring into our home to set us up for a lifetime of success.

Many wonder about Number 33 (Give) because it seem counter intuitive to most of us. One thing we never stopped doing – even in the worst of times – was giving. We always gave money to our church, our favorite charities, and foundations that we believe in. It’s easy to say “I can’t give. It’s not in my budget.” But if we’re looking for a lifetime of success and influence – not just the latest gadget or status symbol – how can we afford not to give? Giving reminds us that we can live for a purpose greater than this world and all the temporary treasures it offers. It helps keep everything else in perspective. So pick and choose from our list above – do one or two or everything on the list – but don’t leave out number 33. We can attest from firsthand experience, it will radically transform your life!

Visit Dominion Lending Centres Mortgage Village to consult a mortgage professional.

Consolidating Debts Can Be Effortless With One Of These Tips

Consolidating debts applications can be a wonderful alternative in case you are in fiscal stress, however they are not the same. In order to choose the best one, you want a standard comprehension of precisely what the applications can offer, what to take into consideration and what phrases are in your very best monetary attention. This article offers you most of that information and facts. Read more to find out more.

Do your homework in your possible debt consolidation loans firms.

Not each one of these businesses is right for your situation. Some usually are not even trustworthy—there are tons of “take flight by night time” operations in this particular marketplace. Don’t get caught in the trap. Check out the firms completely before making any judgements.

Find a debt consolidation agency that hires competent staff members.

Advisors needs to have a qualification from a professional business. Will be the firm genuine with the support of well-known and very trustworthy institutions? This can help you kind the great organizations in the bad.

Find out whether a debt consolidation loans organization will take your specific condition into mind.

A one size fits all technique generally is not going to operate when it comes to these sorts of financial matters. You need to deal with someone that will take the time to determine what is going on along and work out how best to street address the specific situation.

You can pay off your debt by borrowing dollars underneath the correct terms.

Talk to financial loan providers to find out the costs that you simply be entitled to. You may have to set up security, such as a car, to find the dollars you need. You should make sure your loan is paid back promptly.

Recognize why you are in this article to begin with.

Consolidating debts is only 50 % the combat. You must make changes in lifestyle for so that it is a highly effective means to boosting your monetary well-being. It means going for a tough look at your credit history and bank accounts. Determine what resulted in this circumstance.

With regards to handling debt consolidation loans, make sure that you chill out.

This practice is quite typical and can help improve your financial situation when all is claimed and carried out. You have the opportunity to lower fees each month, reduce great curiosity, get rid of late costs, placed a stop to people harassing phone calls, and ultimately come to be debt cost-free. You can bounce back with this, nevertheless, you should always keep relax and take note of your payment plan.

Lots of debt consolidation loans specialists offer home equity loans but do not present these items as a result.

If you work with your own home as being a security for a mortgage loan, you will be trying to get a residence value bank loan. This may not be a great choice unless you are self-confident about spending this loan again promptly.

For those who have a number of bank cards, consider merging your entire accounts into one.

You can save a great deal on your passions and charges if one makes one particular big transaction once a month rather than giving dollars to several credit card banks. Handling the debt is going to be much simpler in the event you blend your accounts.

Have a loan to support consolidate the debt.

Though, this is dangerous for that relationship should you never pay for the money-back. This might be your only opportunity to get a keep in your condition, but handling the debt with debt consolidation will only function if you’re capable of handling the relation to new debt consolidation financial loan.

It is usually much better to try to restoration your debts with out delivering on extra debts, say for example a debt consolidation personal loan. When you can discover ways to pay off whatever you are obligated to pay, even should it be with the help of a credit history consultant, get it done! You will save time and expense.

While engaging in a consolidating debts means a smaller bill for the short term, do not forget that furthermore, it means your instalments will pull on for considerably longer. Is it possible to pay for that in case one thing were to take place later on? Some individuals discover that repaying one of their smaller outstanding debts performs greater for these people. Think about your choices.

As has become stated, not all debt consolidation loans applications are appropriate for everybody. To discover the a single which fits your life-style, assess the advice in the following paragraphs once again. Think about it cautiously when analyzing your options, and ensure to continue having a advanced level of caution. In this way, you can expect to come up with a great fiscal decision which will help to help you get out of debt.

Visit Dominion Lending Centres Mortgage Village to consult a mortgage professional.

BMO Releases 30 Tips for 30 Days During Financial Literacy Month

TORONTO, ONTARIO—(Marketwired - Oct 31, 2013) - To mark Financial Literacy Month in Canada, BMO Financial Group is releasing a financial tip for each day of the month during November. Part of ‘Making Money Make Sense’, BMO’s tips are designed to help individuals and families gain a better understanding of their finances, save money and manage day-to-day finances more effectively.

"We recognize the importance of promoting financial literacy across North America and applaud the efforts of the federal government," said L. Jacques Ménard, Chairman of BMO Nesbitt Burns and Financial Literacy Task Force Vice-Chair. "BMO strives to help our customers and Canadians gain the knowledge, skills and confidence to make responsible financial decisions at all stages of their lives, and we’re confident that Financial Literacy Month will have a positive, long-term impact on the overall financial knowledge and skills of Canadians."

BMO’s 30 Tips for 30 Days in November:
Tip #1: Understand your needs and look for an investment advisor who takes an interest in your specific life situation to help you meet your financial goals.

Tip #2: Open a Registered Retirement Savings Plan (RRSP) as early as possible and making regular contributions will ensure financial stability during retirement.

Tip #3: Investing in an RRSP is a great way to save for retirement in a tax-efficient manner. No tax is paid on investment growth in an RRSP so investments compound far more quickly than they would if invested outside of an RRSP.

Tip #4: Familiarize yourself with the wide range of investments that can be held in an RRSP, including bonds, equities, exchange traded funds (ETFs), guaranteed investment certificates (GICs) and mutual funds.

Tip #5: Spousal RRSPs can be an effective income-splitting strategy to help defer taxes right away and reduce overall taxes in retirement.

Tip #6: Invest in a Tax Free Savings Account (TFSA) to save thousands of dollars in taxes over the long term and to help you grow your savings faster.

Tip #7: Diversify your portfolio by including a mix of investments spread across several sectors to reduce volatility without lowering expected returns.

Tip #8: Consider preferred shares as an investment choice in today’s low interest rate environment. They are a hybrid of equities and bonds and offer guaranteed fixed dividends with stable share prices and predictable distributions.

Tip #9: Create a comprehensive household budget and revisit it often to help keep your overall finances in check.

Tip #10: Track your day-to-day spending habits and take advantage of rewards programs to make the most out of every dollar spent.

Tip #11: This holiday season, encourage friends and family to contribute to your child’s RESP to help pay for his or her education.

Tip #12: Donate securities to benefit from tax savings while supporting a cause that you believe in.

Tip #13: Ensure you are covered with travel medical insurance to avoid financial risk before going on vacation.

Tip #14: Use a combination of a credit card, debit card and cash for added security, convenience and flexibility when travelling to or shopping in the U.S.

Tip #15: Take advantage of credit cards that offer affordable emergency medical and travel insurance to save money and have peace of mind when you travel out-of-country.

Tip #16: Students should pay off credit card balances in full each month and take advantage of rewards and discounts associated with their student-specific credit card to save money.

Tip #17: When planning for a new home, housing costs - including mortgage payments, utilities and taxes - should not take up more than one-third of your total household income. If you can land safely within these parameters, then homeownership is an affordable and realistic option.

Tip #18: Under the federal government’s Home Buyer’s Plan, use your RRSP to help make a down payment on your first home.

Tip #19: Use the tax refund generated from your RRSP contribution to pay down your mortgage.

Tip #20: Before getting married, have an open dialogue about your current finances including your respective saving and spending habits. The “financial talk” will help with the transition from “my money” to “our money.”

Tip #21: Establish a realistic budget for your wedding day and identify ways to minimize costs.

Tip #22: Re-visit your financial situation and budget accordingly when “expecting” a new addition to the family.

Tip #23: Save for your child’s education by investing monthly Universal Child Care Benefit (UCCB) cheques in a Registered Education Savings Plan (RESP).

Tip #24: Create a payment schedule, which includes spaced-out payments and planned financial commitments, to manage day-to-day finances.

Tip #25: Use trusted online financial tools and resources to make smart financial decisions and set yourself up for financial success.

Tip #26: Pay yourself first and put 10 per cent of your income into a high-interest savings account to boost your savings potential.

Tip #27: Bring your lunch to work and put the dollars you save towards retirement.

Tip #28: Include an emergency fund in your financial plan to help ensure you are prepared for unforeseen expenses and to avoid incurring high interest debt.

Tip #29: Consolidate high-interest debt into a line of credit to save on interest costs and become debt-free sooner.

Tip #30: Small business owners should implement year-end tax strategies that will reduce costs and help save money.

Simple Ways To Raise Your Credit Score

If you’re like most people, the recession took a toll on your finances and probably your credit score. So how do you get it back to where it needs to be? While it usually takes seven years for any negatives marks to be removed from your credit report, there are a couple quick and simple ways to you can raise your credit score now. Here are a couple to keep in mind.

1. Keep paying things on time:
The most important thing to remember is to keep your credit report clean from here on out. Pay your bills on time. Make sure you aren’t over your limit on any of your credit cards. Keep the balances on your credit cards low. Keeping your finances clean is the best way to raise your score.

2. Don’t cancel any of your credit cards:
This may seem counterintuitive, but canceling credit cards actually lowers your credit score. Part of your credit score is based on how much credit you utilize (your credit utilization score), so the more credit you have available, the higher your credit score. If you cancel a credit card, you no longer have that credit available, which lowers your credit utilization score, which in turn lowers your credit score. Even if you’ve paid off a credit card, keep it open and gather up the extra points you get from having that extra line of credit. If you qualify, you can also apply for a new credit card to raise your credit utilization ratio, although don’t apply for more than one. Applying for too much credit at once can lower your score. Here is a good list of the best rewards credit cards that can help you save money and raise your credit score.

3. Open the lines of communication with your credit card lenders:
If a bunch of credit card debt is keeping your credit score down, talk with your credit card lenders to see if you can strike a deal to pay off that debt. Many lenders are open to making deals with you, since all they are really after is the money you owe. Just remember, if you do make a deal with a lender, ask them how they will be reporting it to the credit bureaus. They have two options: “Paying as agreed,” which won’t hurt your credit score, or “Not paying as agreed,” which could bring your credit score down. Make sure they are reporting it as “paying as agreed” before you agree to any deal.

4. Sign up for a secured credit card:
If your credit is so bad that you keep getting denied for a credit card or loan, try signing up for a secured credit card. Traditionally, you put down a “deposit” for a secured credit card that ends up being your credit limit, so it doesn’t matter how bad your credit is, secured credit cards are available for everyone. Just make sure to apply for a card that reports to all three credit bureaus, otherwise having the extra line of credit won’t affect your credit score.

5. Make sure there are no mistakes on your credit report:
Over 42 million people in this country have errors on their credit report, and 10 million of those have errors that affect their credit score. Make sure you are regularly checking your credit report to make sure there are no mistakes and that you haven’t been a victim of identity theft. Fixing simple mistakes on your credit report can be a quick way to boost your score. Each of the different credit bureau has instructions on their web sites on how to fix an error, or you can hire a credit repair service to do the work for you (as well as try other methods to raise your credit score.)

Keep in mind, the only guaranteed way to raise your credit score is to keep your report as clean as possible and wait until negative information expires from your credit report, which takes seven years (some bankruptcies take 10 years.) As new positive information appears and old negative information disappears, you’ll see your score start to rise.

Visit Dominion Lending Centres Mortgage Village to consult a mortgage professional.

Clients Less Willing To Renew Early… For Now

Following historically low lending rates, clients are less likely to opt to renew early, leaving few opportunities for independent brokers to try to entice clients to switch lenders… for now, at least.

“Clients (were) getting 2.79- 2.89 five year mortgages and there is no incentive for clients to jump ship earlier and opt to renew early,” Lee Welbanks of Verico Welbanks Mortgage Group told MortgageBrokerNews.ca. “The banks certainly have the advantage because they can renew four months out and they aren’t charging clients a penalty to renew.”

Nevertheless, clients who signed up for five-year fixed rates five years ago – and whose mortgages are now maturing — will likely look to renew, as rates are lower today than they were when they signed up for the current term.

“The variables rates are in vogue right now and we have high rate fixed rates coming out of maturity and so they’re happy to get in on an early renewal,” Welbanks said.

In many of these cases, clients are usually satisfied to stay with the original lender; leaving few opportunities to entice clients to leave. Though that shouldn’t sway brokers from trying.

“We’re trying to find the deals where the clients need more funds. I have some who like my services but, at the end of the day, clients often opt for the path of least resistance – so they choose to renew with the banks or their current lender even if they have to pay a little more,” Welbanks said. “I think the idea is that we need better incentives in order to switch clients; that may be a cash incentive for the hassle they go through, that may be other products you offer.

“It could be a myriad of things but at the end of the day, we can never stop trying, as long as we are not doing something that acts against the client’s better interests.”

And even if that fails, there is always the knowledge that the future will bring with it a leveler playing field.

“The playing field will be more level in 4.5 years because we won’t see as many early renewals. It’s a brand new deal and they have to play with whatever rates are available,” Welbanks concluded.

Visit Dominion Lending Centres Mortgage Village to consult a mortgage professional.

Seven Reasons Credit Applications Are Rejected

A credit file profile is not the only reason for having a credit application refused. There may be other less obvious causes for a rejection.

Not on the electoral roll
The electoral roll is something to which lenders turn for confirmation that the applicant is who they say they are. Not being registered on it can lead to a refusal for credit.

Make sure there is uniformity in your address details
Check the address is formatted consistently. There could be problems if Royal Mail’s postcode address file and the electoral roll don’t match. Disparities in address details can mean a lender turns you away.

Social media
Would-be lenders might check you out on social media and if the vibe from you or even your friends seems irresponsible, this might reflect on their readiness to lend to you. [Read more: How your Facebook friends could damage your credit rating]

A lender’s interpretation of earnings
One reader’s bank statement showed a regular payment coming from an employer, so the bank presumed it was a wage. When the bank found out that in fact it was from a scholarship and was not technically earnings it would not then lend to her.

Another reader’s bank couldn’t understand how his earnings, which were largely paid as dividends, were worked out and so reduced the amount it was prepared to lend for his mortgage.

Not being able to produce the right paperwork to establish identity
Problems can arise in meeting identity requirements. For example bank statements and utility bills downloaded from online may well not be acceptable when it comes to proving who you are. A utility bill needs to be recent so some bills, such as a water bill which does not come as frequently as bills for some other utilities, may not be suitable if it is dated some months before.

One person in a couple may receive the utility bills, so the other will not have those in their name.

Not everyone has a passport or a driving licence and few have, say, a police warrant card and gun licence which may be on the list of acceptable documents. Other identity proofs needed may include an assortment of items that also may not apply to the individual at issue, including evidence of state benefits.

Being too old
As you get older borrowing becomes more difficult.

No track record of past borrowing
Not only should a potential borrower be capable of fulfilling the demands of a regular contract responsibly, they need to be able to demonstrate this with some track record. This could be by managing a credit card or a mobile phone contract. Avoid borrowing more than you can repay. Consider closing down any credit facilities that are not needed as they could give a misleading impression about your borrowing intentions.

Visit Dominion Lending Centres Mortgage Village to consult a mortgage professional.

Settling Unsecured Debts

If you are experiencing money problems, trouble paying your debts or your financial situation is deteriorating you need debt relief. Ideally, you can either avoid paying some of your unsecured debts or you can pay off some of your debts for less than 100 cents on the dollar. Depending upon the situation you might be able to settle one or more of your unsecured consumer debts for anywhere between 5% and 85% of the balance owing.

Type of debts where generous settlements may be available

If you owe money to the government the government will usually take the position that it wants you to repay the entire debt. It is also difficult to settle debts with certain types of consumer creditors such as a landlord or a utility; water, hydro, cable or internet service provider. If you do not pay your rent your landlord is going to evict you. If you do not pay your cable bill your cable service will be disconnected. However, there are plenty of opportunities to settle debts at major discounts with certain types of unsecured debts including credit cards, personal loans, lines of credit and cellular phone charges.

Settlements involving purchased debt

In Canada today about 90 per cent of the debts collection agencies attempt to collect are debts owned by the original creditor. However, in some cases a creditor will sell a large group of debts to a company called a debt buyer, a company that specializes in buying debts. Typically debt buyers purchase debts that are more than 3 years old for pennies on the dollar. If a collection agency is attempting to collect an older debt from you that is owned by a debt buyer the collection agency may be willing to settle this debt for as little for 5 cents or 10 cents on the dollar.

Settlements involving debts owned by the original creditor

Typically major credit grantors in Canada attempt to collect a debt on their own for 3 to 6 months before placing the accounts for collection on a commission basis with a collection agency. When an account is initially placed with a collection agency it is referred to as a first assign. Some creditors may not permit settlements on first assigns. Other creditors may permit settlements for approximately 85% of the balance owing. After a year a delinquent account may be recalled and placed with a new agency as a second assign and the creditor’s blanket settlement instructions may then be reduced to somewhere around 65% of the balance owing. Upon the expiry of another year the debt will likely become a third assign and the settlement guidelines may be reduced to approximately 50% of the balance owing.

In some cases it may be possible for a collection agency to obtain permission from its creditor-client to settle a debt for an amount even more generous than that permitted under the client’s blanket settlement instructions. A creditor may consider settling a debt for a lump sum payment less than its blanket settlement guidelines where the creditor is satisfied the consumer will never be in a position to repay the debt or the creditor is on the verge of insolvency.

Importance of obtaining a written settlement offer before making a payment
In the event you negotiate a settlement with a collection agency it is important that you obtain a satisfactory written settlement offer from the collection agency before making your payment to the collection agency. Failure to do so may result in the creditor or another collection agency attempting to collect the balance from you.

Visit Dominion Lending Centres Mortgage Village to consult a mortgage professional.

Mortgage Rates Stay Flat to Begin Busy Week

Mortgage rates stayed in line with recent 4-month lows today.  In some cases, there was a slight movement in the closing costs associated with prevailing rates, but the rates themselves didn’t change.  The most prevalent Conforming 30yr fixed quote (best-execution) remained at 4.125%.

Every day since last week’s jobs report has been relatively calm for mortgage rates.  Even then, there was reason to believe that we could be lacking some direction until the next major round of economic data came in.  That culminates in next week’s jobs report (which is occurring so close to the previous report due to shutdown-related rescheduling), but the current week can certainly play a role.

Economic data is an important factor in mortgage rate movement for 2 primary reasons.  First, there’s the basic deductive logic that a stronger economy can support higher interest rates, thus stronger economic data tends to push rates higher, all other things being equal.

The second reason has to do with the Federal Reserve’s current role in bond markets.  While market participants no longer expect the Fed to reduce asset purchases soon, the longer-term assessment of Fed policy still affects rates.  If markets think the Fed will continue to push back the eventual end of their buying program, it gives rates more room to stay or move lower.

These two factors both suggest the same movement in the same circumstance, i.e. weaker data suggests lower rates and stronger data suggests higher rates.  But as far as the Fed policy component is concerned, some of the economic data is significantly more important than others—namely the big jobs report next week.

That’s not to say that the other data can’t have an impact, but it has to be fairly unified in its suggestion or the report has to be one of the more important ones.  Tomorrow’s Retail Sales data is a good example of a non-employment-related report that has the power to move markets.  It’s joined by several other reports that together, stand a much better chance to ensure we don’t end tomorrow in relatively unchanged territory for a 5th straight day.

Loan Originator Perspectives

"Good start to the week, auction today was well received, overall lack of any action is a net positive. Keep a close eye on the data Tuesday and Wednesday, auctions, and earnings for some of the big boys this week. FOMC on Wednesday is probably the most important piece of the week.  Safe to stay floating as long as you are closely monitoring the data.  Rates at multi month lows warrant strong consideration to lock." -Constantine Floropoulos, Quontic Bank

"Plethora of data unfolding this week, from Fed Statement on Wed to weekly unemployment, housing starts, and ADP’s October unemployment report (Labor Dept’s report released next week). Will be interesting to see Fed’s take on the DC drama’s impact on the economy and housing. By week’s end, we should have a decent indication on whether our two month bull bond market will continue." -Ted Rood, Senior Originator, Wintrust Mortgage

"Nothing has changed with my current outlook. I like floating loans and only locking when within 15 days of funding. Today’s rates opened pretty similar to Friday and MBS have gained since the weak housing data at 9am. I recommend to float all loans over night, unless your lender has repriced better today, then I would lock if within 15 days." -Victor Burek, Open Mortgage

Today’s Best-Execution Rates

30YR FIXED - 4.125%
FHA/VA - 3.75-4.0%
15 YEAR FIXED -  3.25-3.375%
5 YEAR ARMS -  3.0-3.50% depending on the lender

Ongoing Lock/Float Considerations

• Uncertainty over the Fed’s bond-buying plans and more recently over Fiscal Policy has been making for a tough interest rate environment.

• A lack of data due to the government shutdown caused rates to experience moments of paralysis while headlines suggesting the shutdown might/might-not end, as well as a seizing-up of short term funding markets caused unexpectedly high volatility—enough to be felt in longer term rates like mortgages.

• After a deal was reached to avoid going over the debt ceiling, funding markets thawed and rates returned to the same ‘wait and see’ range that existed before the Fiscal drama. 

• Markets continue to be most interested in economic data and it’s suggestions about the longer term trajectory of the economy.  This will shape expectations for Fed policy in the coming months, and thus inform the direction of interest rates.

• The stronger the data the more likely the Fed is seen as reducing asset purchases.  Rates would rise under this scenario, but the most recent FOMC Meeting (and more importantly, the Fed’s decision to hold off on tapering) suggests that they’ll attempt to keep the pace of rising rates moderate as long as inflation isn’t adversely affected.  The delayed release of the September jobs numbers on October 22nd helps confirm that.

• (As always, please keep in mind that our Best-Execution rate always pertains to a completely ideal scenario.  There are many reasons a quoted rate may differ from our average rates, and in those cases, assuming you’re following along on a day to day basis, simply use the Best-Ex levels we quote as a baseline to track potential movement in your quoted rate).

Visit Dominion Lending Centres Mortgage Village to consult a mortgage professional.

Falling Rates, BoC’s Stand Put Housing Spotlight on Flaherty

For the past few years, the Finance Minister has been trying to prevent Canadian house prices and consumer debts from rising too quickly – without causing a major slump in the real estate market that would hurt the economy. Four times, he has changed Ottawa’s rules governing mortgages to reel in overheated home prices.

It was expected that higher interest rates would do the rest of the work. But that’s now in question, after the Bank of Canada pushed out the timeline for raising short-term rates. Longer-term rates are falling too: The yield on five-year government bonds has fallen from 1.9 per cent to 1.72 per cent in the past 10 days.

If that trend continues, mortgage rates will eventually fall, giving yet another push to a housing market that already has a lot of momentum. The average price of houses that sold over the Multiple Listing Service in September was $385,906 nationally, up 8.8 per cent from a year ago, in large part because pricey cities, such as Toronto and Vancouver, are rebounding from steep sales declines a year ago.

So will Mr. Flaherty be forced to intervene for a fifth time? “While we continue to monitor the housing market, we have no plans for further action at this time,” he said Thursday.

In any event, it’s not clear what tools he has left. Mr. Flaherty has already made most of the easiest changes, such as shortening the maximum amortization period on government-insured mortgages to 25 years. And his favourite tool – verbal warnings to consumers that rates will ultimately rise – are losing traction in light of the central bank’s decision to remove its bias towards higher rates.

“Housing has been the big driver,” says Jim Murphy, head of the Canadian Association of Accredited Mortgage Professional. “If you slow the housing market, what’s going to take its place in terms of the domestic economy? It turns out it’s not the export sector, and now they’re predicting lower growth. If we keep slowing housing and slowing housing, will that just make things worse overall?”

Still, Mr. Flaherty does have some options. Those range from the small tweaks to the standards that consumers must meet in order to qualify for mortgage insurance – which is mandatory for buyers whose down-payment is less than 20 per cent – to more severe changes, such as increasing minimum down-payments.

But it is unlikely that policy-makers will take any action this. Economists and experts have been in wait-and-see mode, because the general view has been that much of the market’s strength in recent months stems from buyers jumping into the market earlier than they otherwise would have in order to beat potential mortgage rate increases.

It will take at least two more months of housing data to properly assess whether the market’s rebound is temporary or has legs. “They really have to wait at least until November or December,” said Canadian Imperial Bank of Commerce economist Benjamin Tal.

There are some minor moves that Ottawa is already planning that could have a bit of a cooling impact on the market. Sources say the Department of Finance has circulated a discussion paper on portfolio insurance. It proposes some changes such as limiting portfolio insurance to terms, such as five years, rather than having it be for the full life of the mortgages, and taking away the ability of banks to substitute one mortgage for another within a portfolio. Changes such as these would further reduce Ottawa’s exposure to the housing market.

And the Office of the Superintendent of Financial Institutions is still putting together a set of underwriting guidelines for mortgage insurers that could place new restrictions on the way they do business.

OSFI has also been weighing the possibility of tightening the mortgage underwriting guidelines for banks, something that would have a larger impact on the housing market. The regulator has been exploring the prospect for a while and decided not to take any action in the spring, at a time when the market was still climbing its way out of the slump that ensued after Mr. Flaherty tightened the mortgage insurance rules in the summer of 2012. (That set of rule changes, which included cutting the maximum amortization of insured mortgages to 25 years from 30, was the fourth that Mr. Flaherty has made in the past five years in an effort to curb consumer debt loads and house prices.)

OSFI has been monitoring the market again this fall, and collecting more data from banks. If it decides to change the lending rules it will hold public consultations first. The possibilities open to the regulator include tightening the rules around uninsured mortgages, for instance by cutting the maximum amortizations of such loans to 25 years, to bring them inline with the rules for insured mortgages.

Any moves that policy-makers might take will potentially have other consequences that must be weighed. For instance, if OSFI alters the rules that govern the big banks and other federally regulated lenders, it could tip the playing field in favour of credit unions and other provincially regulated lenders.

More broadly, any significant moves that bite into the market will slow economic growth. Bank of Canada Governor Stephen Poloz noted Wednesday that “extra growth in the housing market” helped pull the country through the recent period without a major downturn.

And if the finance department continues to make it harder for first-time buyers to get into the market, “it will cause some issues that may have a longer-term impact,“ said Royal Bank of Canada economist Robert Hogue.

“What we’re missing is rising rates,” Mr. Murphy said. “Rising rates would solve the problem.“ That is the opinion of Bank of Nova Scotia CEO Rick Waugh, who spoke out last month saying that if policy-makers are concerned about house prices then the Bank of Canada should raise interest rates. Rather, the central bank decided to remove its bias towards higher rates as it worries about sluggish exports and continuing struggles in Europe.

Visit Dominion Lending Centres Mortgage Village to consult a mortgage professional.

Tips On How To Raise Your Credit Score

The drive to pursue credit repair comes naturally to most people, because better credit scores mean access to more things and saves lots of money. Attempting to repair credit can look like a long, arduous journey. However, there are some tips that can make the trek a much easier travel than might be imagined.

Getting money for a home loan can be difficult, particularly when your credit is less than perfect. In this situation, it is a good idea to try to obtain an FHA loan, because these loans are guaranteed by the federal government. You may even qualify for an FHA loan if you don't have enough money for a down payment or the closing costs.

Be sure that you pay all of your bills promptly if you are trying to fix a bad credit history. Don't leave them until the last minute. Set up a schedule for when you pay your bills, and use some sort of reminder system to make sure that they all get paid on time.

Now is always the right time to consider repair of your credit file. You should always practice spending and saving patterns that allow for you to constantly improve your credit. Monitor for issues, address those issues and protect your improving rating consistently. Waiting until there is an issue or need for good credit will only cost you more time and effort.

Keep your credit card balances low. having a high credit limit on your card can seem like you've won the lottery, but using that entire limit will lower your score. Try to keep balances at a 50% maximum. 30% is more of a prime target. By doing this you are showing that you can handle your credit well, and that you don't need every dollar that has been extended to you.

If you constantly find yourself running out of money towards the end of each month, then monitor all of your spending for an entire month by using a spreadsheet or by keeping a journal. At the end of the month you can then review everything that you have purchased and make suitable adjustments to next month's sending by considering which items are priorities.

As mentioned earlier in this article, the pursuit of credit repair is a process that can take a long time. However, if you apply the advice given in this article, the journey can start now with effects that manifest in coming days. Follow these tips for a simple and solid start to restoring your credit score today.

Visit Dominion Lending Centres Mortgage Village to consult a mortgage professional.

Easy Credit Fixes For You

(Image courtesy of valariecareyerm, flickr.com)

How To Repair Your Credit Quickly And Easily

If you are needing a credit pick me up, then you have come to the right place. Everyone needs to take time to manage their credit, and make sure that it is as good as it can be. This article will give you ideas on how you can clean up your bad credit and maintain the good credit.

The key to successful repair of your credit is to know your rights about how your accounts are reported. If you feel that errors have been made in the way an agency has reported to your credit history then it is in your best interest to know your rights and contact these creditors with that information in your toolbox.

When you're looking to fix your credit, be cautious of credit repair companies. They may tell you they can remove negative information, but if it's correct, it can not be removed. Negative info stays on your history for seven years! It is possible, however, to remove errant information.

Looking at credit repair like a real relationship that you need to work on daily and view as a long term commitment will provide you with a realistic and workable perspective. Just like a marriage, credit repair involves small sacrifices that really add up and improve living conditions. Your relationship with your credit will either enable you a happier lifestyle, with less stress and restrictions or be like a dreaded ball and chain.

More income is the obvious choice when one is working to repair their credit. Therefore, it is important to consider getting a second job. This is important because it is very likely that you actually do have extra time that you could allocate toward earning income. It is equally important to overcome pride, and realize that your current job may just not be enough for you to dig yourself out of a hole.

Hopefully at the end of this article you are seeing just how easy it can be to maintain a good credit rating and to clean up a not so good one. There was a lot of information presented here, but if you follow it and make smart financial decisions, you will be limitless in possibilities.

Visit Dominion Lending Centres Mortgage Village to consult a mortgage professional  

How To Repair Your Credit Quickly And Easily

(Image courtesy of valariecareyerm flickr.com)

How To Repair Your Credit Quickly And Easily

If you are needing a credit pick me up, then you have come to the right place. Everyone needs to take time to manage their credit, and make sure that it is as good as it can be. This article will give you ideas on how you can clean up your bad credit and maintain the good credit.

The key to successful repair of your credit is to know your rights about how your accounts are reported. If you feel that errors have been made in the way an agency has reported to your credit history then it is in your best interest to know your rights and contact these creditors with that information in your toolbox.

When you're looking to fix your credit, be cautious of credit repair companies. They may tell you they can remove negative information, but if it's correct, it can not be removed. Negative info stays on your history for seven years! It is possible, however, to remove errant information.

Looking at credit repair like a real relationship that you need to work on daily and view as a long term commitment will provide you with a realistic and workable perspective. Just like a marriage, credit repair involves small sacrifices that really add up and improve living conditions. Your relationship with your credit will either enable you a happier lifestyle, with less stress and restrictions or be like a dreaded ball and chain.

More income is the obvious choice when one is working to repair their credit. Therefore, it is important to consider getting a second job. This is important because it is very likely that you actually do have extra time that you could allocate toward earning income. It is equally important to overcome pride, and realize that your current job may just not be enough for you to dig yourself out of a hole.

Hopefully at the end of this article you are seeing just how easy it can be to maintain a good credit rating and to clean up a not so good one. There was a lot of information presented here, but if you follow it and make smart financial decisions, you will be limitless in possibilities.

Visit Dominion Lending Centres Mortgage Village to consult a mortgage professional