Chad Moore
100, 1721 10th Ave SW T3C 0K1 Calgary, AB, Canada

Story time ...I recently checked a new clients credit and discovered a low FICO 9 score (619). At first glance I could not determine a good reason why their score was so low? They had long standing credit, no recent credit checks, an isolated incident of missed payments was 12 months prior, less than 50% utilization rates on all trades and multiple types of credit are active. Here's what I discovered ...the money borrowed on one credit card was very recently borrowed. Ev...en though the balance was still less than 50% of the credit card limit, the credit score algorithm severely lowered the credit score because of the recency of borrowing money. I checked the clients credit 30 days later. The credit balance and entire credit profile was virtually the same - except for the passage of time. Their new credit score, 725! Let me know if you have any questions about credit or planning your next Mortgage (buy, refinance, renewal). Cheers, Chad Moore

Free market. I often write about supply and demand fundamentals that move our Real Estate markets. I believe this at my core. However, we do have forces that help steer our housing market. Sometimes I refer to these forces as "they". One of the "they's" is the Bank of Canada. You've likely heard fixed interest rates are at all time lows? If not, now you have. Here's why ...the Bank of Canada is buying financial assets to ease the risk in credit markets and provide liquidity. Without this, we would be in a drastically different interest rate situation. Take a look at the change in financial asset purchases that have been taking place in 2020. WOW.

Here's what I think is important to note about this new Mortgage rule change .... There are three Mortgage default insurance companies in Canada. One public company and two private companies. Canada and Mortgage Housing Corporation (Public). ... Genworth Financial (Private). Canada Guarantee (Private). Until now, their underwriting polices are nearly exactly the same. This Mortgage rule change is a CMHC initiative. This is NOT a Mortgage rule change from the Department of Finance or Office of the Superintendent of Financial Institutions (OSFI). OSFI Mortgage rule changes are mandated across all federally regulated Mortgage lenders and default insurers. For now, the other two Mortgage default insurance companies have publicly stated they are retaining their current underwriting policies. Connect with me to understand all your Mortgage options! [email protected] 403-809-5447 https://calgary.ctvnews.ca//new-cmhc-lending-regulations-k

CMHC, Canada’s largest Mortgage default insurance company, has just announced Mortgage rule changes that are targeted at home buyers with less than 20% down payment, taking effect July 1st. Guys, this is BIG NEWS! I want to explain theses changes, how they effect home buyers, what might happen in the housing market and what opportunities are available. ... CMHC is reducing home buyer qualifying ratios. This means a buyers maximum affordability, with income and down payment remaining constant, is being reduced by about 10%. CMHC is also raising the minimum credit score from 600 up to 680. It is even more important to be mindful of your credit. While on the topic of credit - here is one very basic but helpful tip - please make sure you have active and ongoing credit. Start with a credit card in your name :-). In terms of our housing market, these Mortgage rule changes restrict home buyer demand. If we have reduced buyer demand, without an equal reduction of home supply, that alone puts downward pressure on home prices. So where is the opportunity in all of this? I think home buyers, that are purchasing within their affordability and have maintained a good credit profile, will have even more negotiating leverage. I think this will continued to pressure home prices above the $500,000 price point and increase demand for entry level homes priced under $500,000. The opportunity for home sellers is working with a full time and trusted Realtor or Realtor team who will clearly educate them on the current market and how to anticipate future Real Estate markets. To sum everything up for you, CMHC is tightening Mortgage qualifying criteria and increasing the minimum credit score required for home buyers with LESS THAN 20% down payment, starting July 1st. All else being equal, this is reducing the maximum affordability home buyers can purchase. One big opportunity for buyers is understanding their purchasing power before-and-after the rule change, and adjusting their plans accordingly. I hope this has been helpful information. If you would like an expert opinion on your Mortgage affordability, home purchase plan and MUCH MORE, please connect with me today! Thank you, Chad Moore

| SELF EMPLOYMENT | Traditional income qualifying as a self employed mortgage applicant means looking at a two-year average of personal taxable income. How much money did I personally pay taxes on? This is usually a simple and easy starting point for traditional self employed income eligible for mortgage qualifying. Non-traditional income qualifying is also available for self employed mortgage applicants. This takes a bit more finesse to correctly... structure BUT is a viable option to at least understand. Are you self employed and disappointed with what you've heard back from your bank about your home affordability? Feel free to give me a shout. Chad Moore 403-809-5447 [email protected] See more

HOME RENOS | Ok let's talk kitchens. For most people your kitchen is the area you spend the most time in, and most likely the first place you'd renovate in your home. Here are some kitchen reno numbers: ... As is home: Purchase price: $350,000 5% down payment ($17,500) Bi-weekly payment: $733 As improved home: kitchen Reno: $15,000 Home value: $375,000 Down payment: $18,750 Bi-weekly payment: $786 Improve your home for and extra $1,250 in down payment and $53/bi-weekly payments. See more