Bad Credit Mortgage Loan Canada
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Building a Good Credit History Is More Important Than You Think
If you were ever turned down for a loan, charged higher interest rates, or had a landlord refuse to rent you an apartment, it could be because of your credit history.
Your credit history may make you appear to be a bad risk, or indicate that you sometimes have trouble making your monthly payments. Maybe you never had credit before, so there is no track record of how you pay back money you borrowed. Or maybe - without knowing it - you were a victim of "identity theft", which affected your credit rating.
Many Canadians - especially newcomers to Canada or students - who do not have much experience with credit would be surprised to learn how crucial it is to build and maintain a good credit history if you want to qualify for a mortgage or other types of loan.
To help consumers understand the ins and outs of credit, the Financial Consumer Agency of Canada (FCAC) has developed a useful booklet called Understanding Your Credit Report and Credit Score, which you can obtain at no cost by calling FCAC, toll-free, at 1-866-461-3222, or by visiting the Agency's Web site: www.fcac.gc.ca
Know how credit reporting works
Three major credit-reporting agencies in Canada - Equifax, Transunion and Northern Credit Bureaus - keep a file on consumers, called a "credit report".
Fed May Finally Pause Rate Hikes
Federal Reserve Chairman Ben Bernanke and his colleagues appear ready to call a halt to the longest unbroken stretch of Fed interest rate increases in recent history, providing at least temporary relief to millions of consumer and business borrowers.
But the pause in interest rate increases could be short-lived as Fed policy-makers deliberated behind closed-doors on Tuesday. They're confronting rising inflation pressures in the form of a relentless surge in energy prices and new data that wage pressures are intensifying.
The central bank has not missed a chance to boost interest rates since it started the current credit tightening campaign in June 2004, the longest unbroken stretch of Fed rate hikes in recent history.
It has nudged the federal funds rate up by a quarter-point at each of 17 consecutive meetings, going from a 46-year low of 1 percent to the current level of 5.25 percent.
Reverse mortgage advice
DEAR BRUCE: We own two homes, one in Pennsylvania and our primary residence in New Jersey. Our ages are 66 and 68, and we would like your thoughts on taking a reverse mortgage on the New Jersey home. We do not have a mortgage on the property, and it is worth about $2 million. We thought it would be better to do a reverse mortgage rather than sell; this way, our daughter can inherit the home upon our death. - J.T., via e-mail
DEAR J.T.: Without question you can get reverse mortgage, but you should know that reverse mortgages are only available in modest amounts. The amount is established on the average price in the county where the property is located. There is some talk of changing the legislation to allow whatever amount you need, justified by the value of the home, which would make a lot more sense.
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