Guard Your Personal Credit Bureaus Like Gold!

I'm appalled! I'm so perturbed by something that I just saw that I have to write about it and warn and caution you all about this.

Your credit score is a critical piece to any financing that you are attempting to get, mortgage or otherwise. Do NOT let everyone you speak with when looking for financing pull your credit. I'll say it once again..... do NOT let multiple people pull your credit bureau!

I have someone who came to me today .... 13 months ago their credit scores were 737 and 638 and today they are 619 and 560 respectively due to sheer ignorance. Pure and simple ignornance and lack of knowledge about the repercussions of having so many people pulling their credit. They literally shot themselves in the proverbial foot and destroyed their credit at the same time.

Amazingly enough the client doesn't even recognize many of the people who have pulled their credit bureaus. I was told, "well, my husband was online looking at cars on all these sites and just entered his Social Insurance Number"....... never realizing that by doing so he was allowing them to pull his credit while he was online shopping for cars and getting prices.

And don't get me started on the 'rate shoppers' affect of going to 10 different mortgage brokers to find mortgage financing and each one pulling their credit and effectively lowering their credit scores each and every time!!! Consumers need to be educated on how this will lower their credit scores thereby lowering their ability to get the most advantageous and cost effective mortgage financing in the market. Sometimes even making it impossible to get any kind of financing or refinancing when they need it. I won't even go into the morality and ethics of going to 10 different brokers and wasting the brokers time, efforts, and money on that particular game. And yes, it actually costs a broker money to pull those credit bureaus, a cost ads up pretty quickly.

Guard your personal credit file like gold! The immediate and direct result of too many credit bureaus being pulled is a quick reduction in your credit score which will reflect in higher interest and borrowing costs to you.

And if you are serious about getting a mortgage to buy that dream home or refinancing your existing mortgage and paying off some debt, give me a call or apply online at www.MaryWozny.com!

Warmly,
Mary Wozny

Are Homes the Cause of Some Bankruptcies?

According to an article in the Toronto Star, homes are becoming more of a problem for consumers with escalalting debt.

In the past it was unusual for the family home or real estate to be the cause of bankruptcy in the last 10 to 15 years. It actually was a solution for many people. However, with the drop in the value of homes, their equity has disappeared and they come up with a deficit that the bank still wants repaid.

A bankruptcy trustee with Deloitte & Touche attributes the recent spike in consumer insolvencies to a seven-year high unemployment rate and people relying too much on credit as an income supplement. People worried about losing their job should be cutting expenses and aggressivley repaying debt. Always sound financial advice!

Warmly,
Mary Wozny

U. S. Mortgages Default Rate

It's interesting to note that the default rate for U. S. mortgages that have been modified to prevent house foreclosures may actually end up at 75% according to Fitch Ratings, because of "shrinking disposable income, escalating job losses and possibly some deceptive practices on the part of the borrowers themselves".

Since the U. S. government announced assistance programs to help struggling homeowners and lower the rate of foreclosures, lenders have been trying to modify mortgage terms for borrowers to give them a better chance to get back on track. They reported that aproximately seven per cent of U. S. home loans packaged into securities without government support have been modified to date.

In a statement to Bloomberg, a Fitch representative stated that loan modifications hold clear value for many homeowners proved the modified payments are sustainable. Unfortunately, more often than not, reducing the home payments to an affordable level may not be enough to rescue borrowers who are overextened on other credit and expenses.

How will all this shake out? We'll have to watch and wait, only time will tell.

Warmly,
Mary Wozny

Are You Feeling Stressed?

Stress!

I wonder if you can relate to that one word! What pictures does it bring to mind for you?
One of the most common complaints people have is that they have and they are under so much stress. I’m sure you hear this every day, I know I do! Of course they all believe that is a negative thing. This is not always the case.

Stress can actually be good for you. Some stress is normal and useful and in times of crisis or emergency it helps you act quickly or meet a deadline you may have.

However, if stress happens too often or last too long, it can be very dangerous to your health. Stress is linked to headaches, stomach upset, difficulties sleeping, back pain, moodiness, tenseness and depression.

Stress weakens your immune system making it harder for you to fight off disease and making existing health conditions worse. Over time, stress works unseen within us and harms our bodies, causing degenerative diseases, ulcers, heart disease, cancers, diabetes, metabolic syndrome and a host of other illnesses. The effect of being overweight compounds the effects of stress further harming your health. Poor nutrition and poor nutritional supplementation exacerbates this.

Stress is a matter of perception. What one person believes to be stressful may be seen as perfectly normal for someone else. How you view a situation determines how much stress it causes you, meaning only you can evaluate the amount of stress in your life and learn better ways to cope with it.

Everyone has a choice in how they react and perceive situations. It’s up to you to make the decision to make the necessary changes in your life. It really is easy enough to do, the toughest part is making the decision to actually make some changes.

You can make positive changes and decrease your stress by scheduling and prioritizing, by getting plenty of rest, eating well, drinking responsibly and not smoking, exercising, joining a yoga group or taking up meditation, learning to say no and implementing some boundaries in your life. Nourishing your cells at the cellular level is an optimal way of maintaining your health and well-being, giving you more energy and vitality and over time, healing your body from within. View my website www.VibrantHealthandProsperity.usana.com if you wish to learn more about the number one rated nutritional supplementation program in North America.

Remember to alleviate stress, pamper yourself, relax your body using breathing techniques, exercise or dance, listen to soothing music, live in the present, the ‘now’, and laugh. Above all, life is to be lived and enjoyed to its fullest!

By Mary Wozny

First Time Homebuyers in the Market

According to a report published by Royal LePage Real Estate Services, low interest rates and house prices are the driving forces for potential first-time homebuyers across Canada.

Although first-time homebuyers appreciate government incentives such as tax credits, it is the markedly improved affordability that is proving to be the powerful drawing card bringing them to the market and encouraging them to purchase. The survey demonstrates how important affordability factors such as interest rates and house prices are in stimulating demand.

When asked what the top incentive to purchase was for them, 86 per cent cited low interest rates followed by 81 per cent who said lower housing prices were the top motivating factor. Job security and a stable economy were the next ranked incentives.

Interesting to note - the survey also revealed regional differences when it came to the importance of certain incentives. Job security was more important in Western Canada compared to Atlantic Canada, which has seen a relatively resilient local economy. Ontario and Quebec buyers rated the recently implemented Home Renovation Tax Credit as having a bigger impact on their buying decision compared to the Canadian average.

Contact Mary Wozny, www.MaryWozny.com today for your mortgage financing and make your dream of home ownership come true!

CMHC Says Mortgage Rates to Remain Stable

CMHC in their second quarter Housing Market Outlook says that Mortgage Rates are expected to remain with 25 to 75 basis points of their current level for the remainder of 2009, keeping them very low in a historical context.

Movements in mortgage rates are difficult to predict due to volatile economic conditions however rates are expected to remain steady this year and edge higher in 2010.

Along with mortgage rates, CMHC listed employment, net migration and low birth rate as having key effects on residential construction, and forecast housing starts to decline to 141,900 in 2009 (most notably in Alberta and Saskatchewan) before rebouding to 150,300 in 2010.

2009's decline in housing starts can be attributed to several factors, including the current economic climate, increased competition from the existing home market and the impact of strong house price growth between 2002 and 2007, states their chief economist.

Housing market activity will begin to strengthen in 2010 as the Canadian economy recovers, bringing housing starts more in line with demographic fundamentals over the forecast period.

Warmly,

Growing Numbers Boost B.C. Real Estate Market

British Columbia saw its first year-over-year increase in residential sales in May 2009, with the B.C. MLS reporting a three per cent rise compared to May 2008.

The chief economist at the British Columbia Real Estate Association states that homes sales have bounced back from the extraorinarily low levels recorded during the winter months. Improved affordability and less uncertainty about the future are the main factors driving home sales higher.

Stronger consumer demand combined with fewer home listings is stabilizing prices in the province. MLS predicts residential prices in B. C. to decline eight per cent in 2009 to $420,600.

The majority of the decline in home prices has already occurred and balanced markets are emerging in Victoria, Vancouver and the Fraser Valley. There's now little downward pressure on home prices in these particular areas.

Warmly,
Mary Wozny

Ottawa Housing Market Hot!

Ottawa saw its best May on record for housing sales, with the capital city’s Real Estate Board reporting a 19 per cent increase in sales from the previous month and a 5.3 per cent increase in house prices over May 2008.

Homes in every price range are sell well, right from starter homes to luxury properties, according to the president of the Ottawa Real Estate Board. Homebuyers and sellers are showing a lot of confidence in the Ottawa real estate market.

They reported that 1,969 residential properties were sold in May at an average price of $312,045, a slight rise in mortgage financing has been noted for the same time period. Ottawa hasn’t seen as much of a slowdown as the rest of the country because it is more isolated than the rest of the country and there is more guaranteed income due to the large number of government jobs the capital city has to offer.

Warmly,
Mary Wozny

Have Housing Starts in Canada Hit Bottom?

Canada Mortgage and Housing Corporation (CMHC) reported recently that national housing starts increased by 9.2% in May compared to April. This leads some economists to think that a bottom might be forming in the country's homebuilding activity.

March saw a jump in overall nationals housing starts, that jump was largely due to condo development in Ontario, the Prairies, the Atlantic provinces and Quebec. The only region to see a decrease was B. C. where the market is still moderating. It is believed that housing starts will bottom out slightly below 120,000 before stabilizing throughout next year.

This is a good indication that homebuilding activity will cease being a drag on economic growth and employment heading into next year, however this being the case, housing starts are not expected to head back to previous levels of 150,000 before 2011.

Warmly,
Mary Wozny

Funding for Commerial Mortgages in Canada

The commercial mortgage market has been on a roller coaster ride the past two years with loans based on retail space drying up. The A lenders have increased the credit quality scale and many borrowers are faced with high fees resulting from having to place their mortgages with private lenders in an effort to stop foreclosure.

A lot of the changes to the commercial mortgage arena results from the collapse of the Commercial Mortgage Backed Securities (CMBS). The collapse of the CMBS had large institutional lenders like insurance companies and pension funds leave the market completely.
Lenders are paying stricter attention to the quality of the property, looking at whether the operator is a good one, what the neighborhood is like, and are insisting on appraisals. All this means the lenders aren’t loaning as much LTV and the vendor has to put in his own funds for the balance. Lenders won’t go over 65% LTV with some not going above 50% LTV.

Retail properties are some of the worst hit for financing with fears that if the conglomerates were to shut down some of their big box stores, there would be far too much vacant space available and makes the risk factor much higher for the lender.

An easier option for financing right now is CMHC approved rental apartments in large urban areas. Not only are they the safest, from a lender’s point of view, but with rates the way they are (around four per cent on five-year deals), never has there been a better time to look at insured loans.

Other niches, such as seniors’ care facilitations, rentals, medical buildings and local strip malls with decent tenants (i.e.: not the giant big box stores), are also areas still performing, even if there is limited money to loan on them.

There is sentiment in the marketplace that things are looking better already and investors belive that the market may have finally bottomed out and are deciding to get back into the market.

The market is picking up, interest is good, liquidity is getting better and confidence is coming back.There will be fewer buyers/investors for major commercial deals but those who get the financing will benefit from the historically low interest rates we currently have.

Warmly,
Mary Wozny