How is your credit score calculated? It is a complex answer and, as such, common myths persist. Today, we are going to help you get a better understanding of your credit score and how to make the grade by busting the most common credit score myths!

MYTH #1: TOO MANY CREDIT CARDS WILL HURT MY CREDIT SCORE

The reality is that cancelling healthy, active cards or accounts hurts more than having too many. When you cancel a card, all your payment history is lost as well as the type of credit granted. While you may think having a couple credit cards is extreme, the average Canadian has TEN credit sources. What many Canadians don’t realize is that lenders want to see a history of credit; they want to see payments made on time. In addition, lenders also want to see balances maintained at no more than 70% of your credit limit in use. So, if you have a $10,000 credit card, you don’t want to owe more than $7,000 on it at a time.

MYTH #2: AVOID USING CREDIT CARDS IF YOU WANT TO BUILD CREDIT

It is easy to think that different forms of credit matter more than others, but that is simply not the case. In fact, all lenders want to see is a history of credit and payments made on time. This is what will build your credit score and, eventually, give you the ability to qualify for financing. A history of on-time payments and manageable balances shows the lender that you are a promising investment and not likely to default.

MYTH #3: PAYING MONTHLY UTILITIES BUILDS CREDIT

Unfortunately, paying utilities does not build credit. In fact, these providers only check your credit score to determine creditworthiness; they don’t report your payment history to the bureau. Unless you are late to pay, that is. The other organizations that only report on default are municipalities and vehicle insurance providers, so make sure you keep these payments up-to-date. Be sure to pay any traffic tickets and bylaw infractions too!

MYTH #4: I CAN’T DO ANYTHING ONCE A PAYMENT IS LATE

Don’t be discouraged. Lenders understand that you are only human and, in many cases, they are often willing to work with you if there is a late payment. If they are notified within a timely manner, a late payment can be easily reversed. Just be careful not to make a habit of it.

MYTH #5: CHECKING MY CREDIT SCORE WILL DECREASE IT

No exactly. There are two types of credit inquiries: soft and hard. A soft inquiry occurs when you pull your own credit report. Credit card companies also pull this type of inquiry when marketing pre-approval offers. Soft inquiries do not affect your credit score.

A hard inquiry, on the other hand, is triggered by the applicant when submitting a loan or credit card applications. As a result, hard inquiries will affect your credit score slightly as they are included in the calculation done. Recording the number of inquiries a consumer has on the credit report allows potential lenders to see how often a consumer has applied for new credit; this can be a precursor to someone facing credit difficulty. Too many inquiries could mean that a consumer is deeply in debt and is looking for loans or new credit cards to bail themselves out. Another reason for recording inquiries is for preventing identity theft. Hard inquiries that aren’t made by you could possibly be from a fraudster trying to open accounts in your name; therefore only individuals with a specific business purpose can check your score. Creditors, lenders, employers and landlords are some examples of approved business people. The inquiry only appears on the credit report that was checked.

In addition, hard inquiries remain on all credit reports for two years, after which they are removed. Soft inquiries only appear on the report that you request from the credit bureaus and will not be visible to potential creditors.

Credit score plays a vital role when it comes to potential financing for car loans, mortgages, or even personal loans. It is important to recognize good credit habits now and maintain them for a higher credit score today, and better chance of financial approval in the future.

How much do you really know about reverse mortgages? Maybe you know that reverse mortgages can help Canadians 55+ access the equity in their home, tax-free. Maybe you know that tens of thousands of Canadians are using a reverse mortgage as part of their financial plan. But did you know that there are 7 common misconceptions when it comes to understanding reverse mortgages in Canada. As Canada’s leading provider of reverse mortgages, HomeEquity Bank can help set the record straight.

Common misconceptions about reverse mortgages.

1. If you have a reverse mortgage, you no longer own your home

Nothing could be further from the truth. You always maintain title, ownership and control of your home – HomeEquity Bank simply has a first mortgage on the title.

2. You will owe more than the value of your home in the end

Also, untrue. Every CHIP Reverse Mortgage from HomeEquity Bank comes with a No Negative Equity Guarantee(1) which states that as long as you – the homeowner – have met your obligations, the amount you will have to pay on the due date will not exceed the fair market value of your home. In fact, over 99% of HomeEquity Bank’s customers retain equity in their home when they decide to sell, with over 50% of the home’s value remaining after the loan is paid back (on average).

3. Only people younger than 62 can apply for a reverse mortgage

In Canada, the CHIP Reverse Mortgage is available to Canadian homeowners aged 55 and older. In fact, as you age you are more likely to qualify for a higher amount on your loan. A reverse mortgage is a lifetime product and as long as the property taxes and insurance are in good standing, the property remains in good condition, and the homeowner is living in the home full-time, the loan won’t be called even if the house decreases in value.

4. Failure to make payments can result in eviction

This myth is one of the most common when it comes to reverse mortgages. The CHIP Reverse Mortgage does not require any monthly payments, meaning you can’t miss payments in the first place.

5. Arranging a reverse mortgage is very expensive

This is also untrue. Much like a conventional mortgage, an appraisal of your property and independent legal advice is required, and your responsibility to pay for. The only remaining cost is a one-off closing and administration fee. When you compare this to the costs of “rightsizing” to another home, you will find a much more affordable option in a reverse mortgage.

6. Reverse mortgages have much higher interest rates than conventional mortgages

While it’s generally true that interest rates are a bit higher than a traditional mortgage, the difference is not excessive. Plus, making monthly mortgage payments is simply not a viable option for many retired Canadians, and – even if it were – many would struggle to qualify for a traditional mortgage in the first place. For these reasons, many retired Canadians are choosing reverse mortgages over conventional solutions.

7. You won’t be able to pass on your home to your children

The idea that your children won’t be able to inherit your home is a complete myth. Your heirs will always have the option of keeping the property by paying off your reverse mortgage after you pass away. Plus, HomeEquity Bank’s No Negative Equity Guarantee, (1) states that if the home depreciates in value and the mortgage amount due is more than the gross proceeds from the sale of the property, HomeEquity Bank covers the difference between the sale price and the loan amount. Therefore, you will never owe more than the fair market value of the home.

To find out how much you could qualify for, try our reverse mortgage calculator, or contact your DLC Mortgage Professional.

[1] The guarantee excludes administrative expenses and interest that has accumulated after the due date.

Written By: Agostino Tuzi
Post Sponsored by HomeEquity Bank

Things have slowly but surely started to go back to normal after what was a challenging year for all, but there are a few things that we think might be sticking around – and they include some new ways to buy and sell your home.

Buying or selling this year?

Check out these top tips to stay safe and also, to keep things convenient.

Lean into virtual showings

Virtual showings are a great way to show off your home while preventing the spread of COVID-19. Consider taking a walk-through video of your home to showcase your space to potential buyers. 3D tours are another great way to capture images of your home so buyers can envision the space more clearly

Use home listing sites to your advantage

Since in-person viewings are not always viable, more people are using listing sites to market their homes. Home listing sites are a great way to market your home and reach a larger audience. By using a listing site, you can sell your home quicker and save money in the process.

Be strategic with your listing

To improve your listing and increase your chance of selling quicker, consider improving the overall appearance of your home. This can be done by painting the home a neutral tone and using professional staging and photography.

Be selective with your in-person showings

Due to the COVID-19 pandemic, sellers are becoming more selective who can view their home in-person. When scheduling viewings, consider requesting proof of mortgage pre-approval to minimize in-personal contact.

Eliminate surface touching and keep sanitization products around the house 

When proceeding with a showing, ensure you leave all doors open and turn on all lights to avoid contamination on common surfaces. This will help prevent the spread of COVID-19 and ultimately make home viewers feel safer during the buying process.

It is a New Year and it’s that time again to inspect your home to ensure everything is in good condition and working order! To help you, we compiled a list of five simple ways to keep your home maintained throughout 2021.

Seal up any cracks.

The colder months are the perfect time to winterize your home. Be sure your house is properly insulted and check for any cracks in your windows, walls and doorways. You can use a sealing product to repair any drafts. This will help you save money on your heating bill.

Check your roof.

It is important to ensure that your roof is in good condition. Inspect it occasionally for any damage, leaks, loose or missing shingles and water damage. This can save you from a hefty repair bill down the line.

 Spruce up the exterior.

The summer months are a great time to groom the outside of your home. Take the time to touch up the exterior paint and pressure wash your deck and patio. Make sure to check for any damage to your home’s exterior that could worsen in the winter months.

 Prevent damage from insects.

Particularly in the summer months, insects can damage your home. To prevent this damage, be sure to secure and seal the outside of your home to minimize the risk of any pests entering. Consider hiring a licenced exterminator if necessary, especially if you live in a highly active area.

Check your A/C unit.

Air conditioning units should be inspected and serviced annually to make sure that they are running properly and at optimal efficiency. Ensuring that your A/C unit is running efficiently will save you money over time!

For more tips or to speak to one of our mortgage brokers, call us at 403.589.2777

It’s a weird time out there everyone!

But that doesn’t mean you can’t get down and jolly this holiday season! Here are some tips for how to be a holiday host in 2020:

Host a virtual Christmas dinner or party

Despite the new restrictions, you can host a virtual (but still festive!) Christmas dinner or party. Holiday celebrations can be hosted using various easy-to-use platforms including Skype, Zoom, and Google meets. Make it fun and set a theme such as Christmas PJ’s or ugly Christmas sweaters! Digital events are a great way to celebrate safely.

Drop-off a dish for friends of family

Instead of hosting dinner at home this year, consider dropping off a dish for a friend or family to enjoy! Meals that are simple to reheat are usually best. Consider pasta dishes, pot pies, a casserole or even a few baked goods.

Give an e-Gift Card

Skip the shipping and send an electronic gift card instead! eGift cards are easy to send and spend and are a great gift option for friends you won’t see in-person over the holidays. eGift Cards are available at many favourite shops including Starbucks, iTunes and Amazon.  And don’t forget to support local! Lots of local businesses carry some amazing gifts with great stories and even offer online shopping.

Visit Christmas lights with friends

Calgary has some great spots to check out Christmas lights this year!  A few places worth visiting include The Calgary Zoo, Spruce Meadows and Noel Indoor Light Park & Christmas Market. Arrange to view the lights with a few friends or family members to keep the Christmas spirit.

Attend a Christmas market

Attending a Calgary Christmas market is a great way to complete your holiday shopping and support local businesses. Make it fun and plan a safe and socially distant market visit with a few friends. A few great markets include Granary Road Christmas Market, CrossIron Mills Holiday Haven and Festival Hall-iday Market.

With the holidays right around the corner, many people are looking for ways to better manage and save their money. After all, the holidays are a time for celebration and spending time with loved ones, not getting yourself into debt! We have compiled a list of our top money saving tips to help you budget for the holidays.

Order online

Ordering online is convenient and a great way to avoid busy shopping centers! It is an easy way to complete price comparisons; eliminate sales pressure and help you stick to your budget.  Tip: always ensure you are ordering from a trusted source!

Be thrifty

Be sure to start your holiday purchasing early and plan your shopping list beforehand! To save money, take advantage of sales including Amazon Prime Day, Black Friday and Cyber Monday. Tip: get in the habit of going through flyers to get the most out of your money!

Stick to your budget:

Do yourself a favour and don’t go over your budget. By creating a strategic budget before going ahead with your holiday shopping, you can avoid any impulsive purchases. Save yourself from the future debt stress! Tip: download a free budget-tracking app and connect it to your back accounts to keep your spending in check!

Get Crafty

Holidays are typically a very expensive time! Its important to remember that its unnecessary to spend an excessive amount on gifts. Handmade gifts are always very appreciated and will help save you money. Tip: check out Pinterest for tons of inspiration and DIY projects!

Give the gift of time

It is important to remember that the holidays are not solely about buying gifts! Instead of purchasing gifts for your loved ones, consider spending quality time with your friends and family. Tip: split the cost of hosting a dinner for a family in need to double the amount of joy spread during the holidays!

Remember the holidays are a time for creating memories, not over spending. Be sure to plan ahead to save money and maximize the pay-off!

Back to school is not just for kids! Now is the perfect time to get your finances and credit in check. We have compiled a list of our top five tips to save money and get your habits back on track this fall:

Buy in bulk and plan your meals!

Step one? Write that grocery list, but write it out for the whole month. Step two? Head to a bulk food store for things like dry goods, toiletries and things that can be frozen. Use your weekly shops for fresh items and stretch your budget. You will be amazed at how much you can save when buying in bulk.

Pay off debts 

You may think that saving is the most important thing, but you’ll also need to pay down debt if you have any. Consider paying debt down while simultaneously saving for maximum results and consolidate debt into one place; a line of credit often has far less credit than a credit card – and finally, pay debts from highest to lowest to avoid higher interest rates.

Set-up automatic savings

Consider your financial goals in 2021 and automatically save for them! By setting up auto transfers each week or month, or each time you get paid, you won’t risk accidentally spending the money you should be saving.

Consider needs vs wants. 

When making larger purchases, a 24-hour rule is key. Sleep on it. Consider, is it need or a want? Will this item add value to your life? If the answer is yes, we salute you!

Master DIY 

Looking forward to some home renovation projects? Hop on Pinterest and check out the world of DIY! Many home renovations can be done for a lot less than you think!

We are part of Canada’s largest and fastest-growing mortgage brokerage. We work for you, not the lenders. Looking for a new home? Contact us at (403) 589-2777.

Whether we like to admit it or not, fall is just around the corner and there’s work to be done if you want your home to be cozy and protected during the colder months. Here’s our top four favourite tips to get ready for autumn.

Seal any cracks on the outside (and inside) of the foundation of your house. 

Sealing cracks does a couple of different things. It stops leaks from getting inside your house as well as controls unwanted pests like spiders and other critters, from taking up residence in your home during the colder months.

Empty water from hoses or any other moisture bearing devices. 

Do this before the frost hits in October so that you can avoid damage to watering devices as well as, leaks.

SYOD! “Store your outdoor decor”!

Some of your garden friends might survive the colder months, so bring ’em inside!

Did you know that plants like tropicals and succulents and even tomatoes thrive inside? Quarter off a room that you do not mind getting a little dirty and bring them in to enjoy through the fall!

We’re more than just your broker. If you need home advice, give us a call or throw us an email at dlccalgary@dominionlending.ca

As we all continue to adapt to an interim reality, we have to plan ahead to ensure we can continue to live responsibly.

Everyone is juggling new challenges, questions, especially where our finances and jobs are concerned. You’re not alone. Most businesses/employers in Calgary are or will be filling for a number of Federal Government initiatives, including payroll subsidies and cash infusion loans. Some of these items are helpful, but remember, loans still have to be paid back, as do deferrals.

In order to keep accountable to your finances in order to succeed financially post-Covid, we recommend the following steps:

Trim the fat.

Look at any personal or business budgets. What can you afford to cut? What is a luxury item? If it’s a want versus a need, it should go for now.

Look at your income, assets and debt.

If you aren’t bringing in as much income as before the crisis, determine your new baseline and how much you are projected to bring in moving forward – this will help with budget cuts. Take a peek at your assets, can you afford to liquidate or pull any of them out? Your mortgage can also potentially be re-financed if needed. Look at your debt. If possible, keep paying it off. Any good financial expert will tell you to do two things simultaneously, save and pay off debt. This will support your overall financial health.

Spend strategically.

Having your budget in tact is more important than ever. Itemize your expenses by fixed and variable and know what you can afford to cut. Check out cash back apps or services to support in savings and take back old school – coupons are still a great way to save, especially with gas or groceries.

In short, re-consider your spending, be organized and be cognizant of your spending.

If you need support or have questions about your mortgage, reach out to us!

The Danish word “Hygge,” which roughly translates to “coziness,” has been popular the last number of years – and who doesn’t love being cozy? Here are five ways to make your home more hygge that appeal to each of the senses.

1. Sight: Light it up!

Few things are cozier than the warm glow of ambient light. Light the fire or light some candles for instant comfy. Don’t have a fireplace? Real candles aren’t your thing? Consider getting battery-operated candles or turning on some twinkling lights. If all else fails, turn to YouTube and curl up in front of a holiday yule log video.

2. Hearing: Turn up the Tunes!

 Everyone has different tastes in music; what’s music to someone’s ears may be noise to another’s. Soft tunes such as acoustic or “candlelight” music tend to comfort the auditory senses more than upbeat music or heavy metal. (“Metal” even sounds cold!)

3. Taste: Pour Yourself a Cuppa!

Having a warm cup of coffee, tea, or hot chocolate is akin to getting a hug from the inside. Everything from the steam rising from the mug, to the warmth of the ceramic, to the smell of the delectable drink, to the taste on your tongue says, “Cozy!”

4. Smell: The Sense Most Closely Tied to Memory

Like music, scent is inherently personal: what smells good to one person could be off putting to someone else. Certain smells, however, are fairly universally appealing: pop some baking in the oven, boil some aromatics on the stove, or diffuse your favourite essential oil blend to fill the air with the sweet smell of comfort.

5. Touch: Cuddle up!

 Textiles are the easiest way to invite hygge into your home. From cozy throws, to textured sweaters and fuzzy slippers, blanketing yourself is the pinnacle of hygge.

Looking for a home to make hygge and need help on the financing front? We can help make your dreams come true in 2020.

Contact us when you’re ready to make your move!