Toronto Mortgage Useful Info
Purchasing a new home is most likely the biggest investment decision you will ever have to make and it should be approached very carefully. It is for this very reason that more and more Canadian homebuyers are using mortgage brokers to secure their mortgage or to refinance an existing mortgage.As almost everyone who is buying a home will need financing, they are also interested and often need guidance on what to look for in a mortgage and how they can pay the least amount of interest over the term of that mortgage.
This portion of the website has been designed to aid you in making the right decisions regarding your mortgage, the following information will let you know how much you can afford to spend and what your payments will be, it will also suggest ways to save thousands in interest over the life of the mortgage, and present the special programs offered by certain financial institutions that may better cater to your needs.
How to Improve Your Credit Rating
Importance of a Credit Rating
Your credit rating is a measure of your credit-worthiness or in other words, your record of borrowing and repayment. Without a credit rating, few institutions will lend you money. It is very important to have established credit when approaching financial institutions for mortgage financing.
Your credit rating will contain information regarding how you have handled debt in the past. All institutions you have dealt with for the purposes of receiving debt place any applicable information on your credit bureau.
Here is how to build a good credit rating:
- Pay your bills promptly, especially credit cards.
- Borrow only what you need and what you can afford.
- Try to pay off loans on time and as quickly as possible.
Checking Your Credit Rating
As a consumer, it's your right to know your credit rating. Credit can be denied based on inaccurate or insufficient information. You may want to check your file if you aren't sure of your credit rating, if you are refused credit or if you plan to apply for a large amount of credit such as a mortgage. You can get a copy of your credit report through one of the many credit bureaus across Canada for free or for a nominal charge.
Here are some guidelines:
- Contact your local credit bureau, in Canada most lenders rely on inforamtion provided by Equifax and Transunion.
- Call to find out how you can review your file. You'll be asked to provide identification to ensure the confidentiality of your file. A written report may take two to three weeks.
- If you notice any errors and can offer written proof, your file will be changed immediately. If you can't supply written proof, give the facts to the credit bureau, which will then investigate. If your facts are confirmed, your file will be updated.
- If you see an error but proof cannot be found, what happens next depends on where you live. Each province has its own legislation relating to credit bureaus. The information you are challenging may be taken off your file or a note may be added, saying the information is "in dispute".
- If an error has been corrected, the credit bureau must notify members who have inquired about you during previous months (as required by provincial law).
Receive interest rate forecasts and mortgage-related news from Canada's leading financial institutions, assembled by the Reactive Mortgages team.
