On the CBC news site there is an article about how someone’s credit score was downgraded by 100 points because of an unpaid bill.  The gentleman in the article,  had moved and failed to inform one of his creditors (Telus).  Since the bills were going to the wrong address, it remained unpaid for years until it dramatically affected his Beacon score.

“When you have a lower beacon score it affects the amount a creditor will lend to you,” said Bonnie. “When there’s damage on a credit report it’s on there for six years.”

I highly recommend reading the article because it outlines Telus’s rationale for not tracking him down.  The article also gives some great tips about what you should do in similar circumstances and what you can do “after the fact” if your Credit Score is damaged.

This article really hit some “nerves” … check out the comments!

I know this is a little late, but we’ve been so incredibly busy this past month I almost forgot!   Averbach Mortages and Belmont Properties participated as GOLD sponsors for the Odd Squad’s 2nd Annual ON TRACK Gala.  This event was to raise money to fund the services and educational programs provided by the Odd Squad.

The Odd Squad is a registered charitable organization, started in 1997 by seven Vancouver City Police officers with expertise gained through their extensive beat work in the Downtown Eastside, and a passion for storytelling to make a difference.

Their Mission: To educate the public about the devastating effects that high-risk behaviour has on members of our community. Odd Squad creates high-quality, reality-based documentaries designed to give youth the knowledge to avoid the pitfalls of drug abuse and other life altering, anti-social and criminal behaviour and to assist them in making rational life choices.

Because of the increasing prevalence of Gangs throughout the lower mainland, the Odd Squad has also introduced Gang related videos and educational components into their program.

The Odd Squad is currently developing educational modules for youth, parents, and teachers on the issue of youth Gangs. This critical issue is in the forefront of everyone’s minds at a time when gang violence is spiraling out of control in metro Vancouver and across Canada.

Here is a sample snippet of their upcoming gang prevention program:

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If you would like to donate to the Odd Squad please call  604-408-9945.  Be sure to visit the Odd Squad website to see the range of services, educational information and resources they provide to help keep kids and teens off drugs.

Mortgages are normally rejected because of credit problems, such as being delinquent on your bills, employment problems, a heavy debt load, or not enough income.

If your bank turns you down, that does not mean you will end up paying rent forever.

As professional mortgage brokers, it is our job to help you present yourself in the best light. For example, your bank may have turned you down because the property you were hoping to buy was too pricey.  The first thing we would do is pre qualify you, so that you would know exactly what you can spend on a property.

We’ll also shop around for you. Other financial institutions may look at you differently. Each institution has different lending criteria and our job is to know where there may be a “fit.”

If your problem is your credit score, due to missed credit card payments or other credit history problems, we can advise you on what it would take to improve your credit score.

Other things that may make a difference between acceptance and rejection are:

A Guarantor: Someone who is able to financially back your application will help you get accepted. Of course you will have to convince THEM that you are a good financial risk, because if you default on your loan, they will have to pay. Parents, siblings, friends or even an employer may be willing to be a guarantor.

Borrow money: Increase your down payment by borrowing money. Again, parents, siblings, friends and employers may be willing to lend you money. Be sure to ask us how this will affect your application, it may not make a difference if you are near to, or over the 40% debt limit.

Get creative. If you are single, consider purchasing a shared space with a couple, or another single.

If you have any questions be sure to give us a call at 604-736-1855.

Here’s a market update from our friends at Macdonald Realty; Simon Clayton, Kristie Marsden, Jason Low, Sandra Ens, and Jenny Stephanson.

July 2010 Market Update

Welcome to the 2nd Half of the Year!

On July 1st, the HST came into effect.

We discussed this last month, so there’s no need to rehash the topic, but just a reminder that to calculate how the HST will affect a typical new house price, please visit www.macrealty.com to use the HST calculator. Remember though, there are many subtleties to the HST laws and its associated transition rules. An accountant will likely be needed to answer these more detailed questions.

On to a more interesting topic: Luxury homes

Midway through 2010, Vancouver’s luxury housing market is set to break all records. According to MLS stats, 169 homes sold for over $3 million through the first 6 months of 2010. The projected 338 sales for this year beats the record set last year of 2009, and doubles the number achieved in 2008 (167 sales), when the financial crisis led to a downturn in housing sales throughout the country.

This market is being fuelled by international buyers, who are comparing Vancouver prices to those seen in Hong Kong, London, New York, and other world-class destinations. By comparison, Vancouver’s luxury prices still seem relatively cheap. For instance, Vancouver’s most expensive neighbourhood, waterfront Coal Harbour, fetches prices close to $2,000 per square foot. By comparison, properties in Knightsbridge in London have seen prices in excess of CDN$8,000 per square foot!

However, despite the resurgence in luxury properties in Metro Vancouver in the past year, the same cannot be said for the rest of the province. In both the Interior and on the Island, foreign buyers generally aren’t from other countries, but rather from the Lower Mainland and Alberta. The interior and Gulf Islands have seen a strong price stabilization since the financial crisis nearly 2 years ago, but nowhere near the price inflation seen in Vancouver.
If you want more information on Macdonald Realty’s luxury program or have any other questions regarding real estate, please do not hesitate to contact me.



July 2010 Market Update

If you would like to learn more, please feel free to contact us by phone or by clicking on one of the links below:

Simon Clayton 604-764-0711

Kristie Marsden 778-836-4389

Jason Low 604-790-5276

Sandra Ens 604-263-1911

Jenny Stephanson 604-675-6214

Jason Feinstadt 604-263-1911

MacDonald Realty 604-263-1911

Our Appreciation Goes to YOU

June has been an amazing month. Our office has been a bee hive of activity.

By the end of July, we’ll have eclipsed last year’s total mortgage volume. That’s an incredible increase in our business … all due to you, our customers.

We do our best to be of service to our customers, In April the Canadian Mortgage Awards presented us with a plaque for winning the “Best Customer Service” award. But better than that is the fact that OUR CUSTOMERS keep coming back to us, and keep referring us to their acquaintances, friends and family.

Both Justin and I want to acknowledge YOU and thank YOU for your business.

If you are planning on a home purchase, or on refinancing in the next six to twelve months, here are a few things you can do to positively affect your credit score.

Your credit score will impact how much of a mortgage you will qualify for as well as the rates you will be offered.

1. Be sure to pay off any loan or debt payments on or before their due date. Any 30, 60 or 90 day delinquencies on loans or debts will negatively impact your credit score.

2. IF you are having problems paying your debts, pay any loans or debts first. Then pay your credit card. Try to at least pay your minimum credit card payment. The lending institutions will first look at your payment history on loans similar to theirs (eg. car loans) and then will look at your credit card history.

3. Don’t max out your credit card.

4. Get rid of extra credit cards (including department store cards such as Sears, the Bay, etc).

5. Consider reducing the amount of your down payment, and paying down some of your consumer debt.

These actions will positively impact your credit score and may make the difference between being accepted for a mortgage, or not.