Canrus Group of Real Estate Investors

So Is Credit Score Decreases with Mortgage Payment Defferal or Not? Now that we know the big 6 Banks will consider your application for a deferral of mortgage payment on a case by case basis, I noticed some confusion in multiple threads about the impact on credit scores. For us, real estate investors, credit scores are very important! They can be the difference between being able to qualify for a new mortgage to buy another property, or get declined and having the need for ...someone else’s credit to keep moving forward. They can also mean lower or higher interest rate, potentially making your new acquisition or an existing property (during refinance) cash flow negative! As a credit risk management professional, I might be able to explain why some of you hear that mortgage payment deferrals will have no impact on credit scores, while others hear the exact opposite. Banks will keep you in the Current/Non-Delinquent status in their systems, if they approve you for the deferred payment. When they report your credit performance to the credit bureaus, Equifax and Trans Union (which calculates your FICO, Bankruptcy, and Other credit scores), you will appear current. By staying in their "current" scorecard you will not lose points from your overall score, like you would if you defaulted on your payments. However, for those of us with a large number of mortgages, there may be some bad news ... as banks treat these deferrals sort of like additional loans to you, these deferred amounts do get added to your overall debt burden. Debt burden constitutes about 30% of the credit score value. BTW, it also is a big factor in your bankruptcy score too. So as your debt burden keeps growing (for some of us by a lot, depending on the number of mortgages and the length of time you defer), it will impact your credit score negatively gradually. It is not bank policy that will do it to you, but a statistical model that credit score is. Credit inquiries constitute about 10% of the credit score value. Not as impactful as you current vs. delinquent status, or debt burden, but nevertheless try to group your requests for deferrals, if possible. Dropping 10% of your score may move you from Prime Credit to Near Prime for instance. Your interest rate on a refi or new mortgage may go up as a result. Some mentions have been made of Skip Payment options. Normally they are available to those of us who paid additional amounts on top of your monthly or semi-monthly mortgage payment. Worth asking though.

this can be very useful: https://www.canada.ca//canadas-covid-19-economic-response-

Amazing how quickly things can change!! Only two weeks ago the real estate market in Ontario was super hot, people lined up overnight to buy a new condo, multiple offers without conditions were the norm, and we all could travel, go to the movies, and buy toilet paper without fist fights! Fast forward to today, and the world is shut down. Suddenly our plans to go to Florida and explore their flip and rental opportunities is on hold, checking out properties is done virtuall...y, and buying groceries involves dressing like an ancient warrior! So what are we doing with this newly found time? Keeping very busy actually. With so many businesses closing their doors, some people inevitably become unemployed and cannot afford to pay rent or buy groceries. It’s not anybody’s fault, but we all have to pull together to figure out the way to survive this highly dangerous and concerning period. We are compiling all useful information to share with our tenants, so they are aware of the relief programs, income supplements, newly announced EI benefits, payment deferrals announced by utility companies. First and foremost, we must be good human beings right now, and support each other. Hopefully, with these programs being put in place in a hurry, they will pay us rent and if they can’t, we are meeting with our bankers to fully understand the mortgage payment deferral opportunities, following the government sites to see how far we can postpone property taxes, etc. This is important to us and our joint venture partners, who understandably are nervous. Every disaster is also known to create opportunities! In the months to come, we will be looking for good deals. That’s what being an entrepreneur is about. Taking care of business while helping others achieve their goals! If anybody needs information we assembled on the programs available to renters, small businesses, including landlords, please feel free to shoot us a message. Oleg and Allison

Great evening at the RockStar Brokerage! Allison and I got a chance to share a bit of our real estate journey with other investors. Interesting discussion continued after the presentation - investment strategies that get results and attract investment capital, working with your spouse while keeping your marriage healthy, setting goals and calendarizing your activities, etc. etc. Thanks @MarkGreenidge for inviting us!

Important to know! Millennials have their own preferences, as renters too. Typically it is closer to work, driving less, more cafes, restaurants, entertainment, downtown condo living. https://www.kitchenertoday.com//waterloo-a-top-destination

Music to our ears! Jobs, jobs, jobs! Here is what we learned over 15 years of renting homes to people - most tenants are good people, who do want to pay rent on time! The issue is they, like all of us, need good income to keep up with obligations. Good jobs do that. As local investors, we are very excited about the economic fundamentals being so strong in our community! https://www.kitchenertoday.com//business-park-in-waterloo-

As stock markets are tumbling in response to Corona virus fears, the housing market continues its frenzy. How is this for housing demand? https://www.kitchenertoday.com//potential-buyers-camp-out-

Transportation improvement is a very important factor in boosting local real estate values. Now people can commute as far as Toronto on the GO, and live in a much more affordable Kitchener!! https://www.kitchenertoday.com//kitchener-go-station-seein

No surprise here!! When employers come to the area creating lucrative jobs, the population is bound to increase. Kitchener-Waterloo region's population growth is fastest in the country!! When economic fundamentals line up, real estate follows! https://www.kitchenertoday.com//waterloo-region-has-fastes

Great news for K-W! Good choice, Google!! More good jobs means more people coming to the area to take these jobs. Then in turn in creates more demand for rentals, and helps property values increase!! https://www.therecord.com//9844485-google-ramping-up-its-/

With the RRSP contributions deadline approaching, and your bank telling you to buy more under-performing (did I say it out loud?) mutual funds, visit our page to learn about alternatives: http://canrusgroup.com/real-estate-private-lending/

Do returns from your mutual funds portfolio leave you underwhelmed and concerned about your retirement? Visit me on my blog to see how much of your profit is getting shared with your bank: http://canrusgroup.com/blog/