Anna Melnik, Your Real Estate & Mortgage Agent
Kipling Ave M9B3N1 Toronto, ON, Canada

There’s a virtual credit file with your name on it! When it comes time to apply for a mortgage, that file gets opened and the result is a credit score that will help determine whether and how much you can borrow, and at what rate. The good news? You're entirely in control of your own credit score. Even if your past credit history has been bumpy, there are steps you can take to increase your score. Here are a few important tips: 1. Never let a bill get past due. This is the... single biggest factor in your credit score. Set up automatic payments if you can, or keep a careful calendar. This one habit carries the most weight when it comes to your credit score so be sure to take it seriously. 2. Create your own credit limits. If the credit card company gives you a credit limit of $10,000, create your own limit of $3,000 (or no more than 30% of the available funds). Have more than one credit facility? Balance them out. It’s better to be at 30% on three cards than have one at the limit and two that are never used. You want to show that you are using your credit wisely. 3. If you're getting too close to your limit, pay more than the minimum every month if you can, and work towards clearing off your balance entirely. 4. Be selective. Applying too frequently for credit has a negative impact on your score. A raft of cards looks like you’re an out-of-control spender and not a good credit risk. 5. Make sure you have a credit history. You may have a low score because you don't have a record of borrowing money and paying it back. This history is important so don't cancel a card and lose that history. The longer you’ve had a card, the clearer the picture is of how you manage your debt. If you feel you really need to cancel a card, get advice first. Get in touch any time if you'd like to discuss taking control of your credit score. And if you need to get a mortgage while you’re still working on improving your score, I can advise how that may be possible.

Whether you are saving to buy a home or paying one off, money leaks can add up to some big bucks over time. Here are five ways to find some of your missing money or help you save over the long term: Track your spending and consider your impulse buys at grocery, gas station, convenience and other stores. If impulse buying is a big culprit, always make a list and stick to it, only grocery shop once a week and never on an empty stomach! It’s easy to spend more than you ...intend to when you exclusively use your credit cards, because you aren’t seeing the money. Consider withdrawing a fixed amount of cash for your spending each week. Take a good hard look at your monthly bills and go through them line by line. There may be charges for services you don’t use or can live without, or perhaps don’t remember requesting. Even if the amount is small, why have it charged every month? Whether you are signing up for internet or buying a car, ask is this the best you can do? or can you make it more affordable? Do research in advance so you are prepared and knowledgeable on all things related to what you are buying. The biggest money leak? High interest. All of the savings you make in lifestyle choices mean nothing if you don’t put a plug on paying high interest. If debt is choking your cash flow and you have enough equity in your home, you may be able to move that debt to your lower-rate mortgage and save thousands. Let's talk, and find out if this can work for you.

Looking to buy this year? Get in touch early in your homebuying process. Knowledge is power, and being prepared is the best way to get where you want to go.

2022 is just around the corner...

The Bank of Canada announced today that it is maintaining its policy rate, with its projection for a rate increase continuing to be the middle quarters of 2022. Inflation is elevated and the effects of supply constraints will take time to work their way through, although gas prices that were pushing up inflation have recently declined. The Bank expects inflation to remain high in the first half of 2022 and then ease back towards 2 percent in the second half of the year. The B...ank is closely monitoring both inflation and labour costs to ensure that the factors currently pushing prices up are not embedded in ongoing inflation. Economic growth was as expected in the third quarter let by consumption as restrictions eased and high vaccination rates boosted confidence. There is good momentum for the fourth quarter, although the omicron variant and BC floods could weigh on growth. The next rate-setting day is January 26th, 2022 With rates still extremely low, this is a great time to get in touch for a review of your mortgage strategy. It's important to get advice and a professional assessment of your situation if you want to switch your mortgage for a lower rate, need a new mortgage, are renewing, or looking to refinance for debt consolidation, renovations, or other large expenditures.

Pre-approvals still make sense if you are thinking variable-rate mortgage. Should the prime rate rise as projected in 2022 and 2023, variable- rate holders are affected, either by a rising payment or by an unchanged payment that covers more interest and less principal. I will make sure you are clearly aware that this may occur. So then why would you get a pre-approval if you are thinking variable-rate mortgage? It makes sense because you lock in the current discount to the prime rate. History has shown that this discount can change quickly so why not lock it in while you are house shopping. Let's talk!