When talking about mortgage rates lower is better, and anyone in the market for a mortgage is always looking for the best rate. But there’s a wide array of requirements that need to be met in order to be able to get the best-possible deal. Here are five obstacles you may face when trying to get a lower mortgage rate
You income is too low
In order to qualify for the best pricing on mortgage rates you need to be able to prove one to two years’ worth of stable salaried income. So if you’ve just started your own business and taken a significant salary cut, it may be more difficult to get a good rate. You also may need to make a larger down payment.
You have an unusual property
Some lenders charge more if you have an atypical property. Properties including (but not exclusive to) high-rise condos, co-ops, former grow-ops, larger residences, cottages, and other non-standard buildings will have higher rates because lenders view them as “high-risk”.
Your mortgage is on the bigger side
From a lender’s perspective, bigger mortgages mean potential for bigger losses if the owner defaults. This added risk factor results in stricter lending limits, especially on mortgages exceeding one million dollars without at least 25 percent paid down.
The property isn’t your primary residence
It’s very uncommon that the cheapest rates in Canada apply to residences that are owned for the sole purpose of generating income, that the home owner doesn’t live in. Statistically, these deals are higher risk for investors and lenders so you should expect a higher mortgage rate.
You have a low credit score
The most common minimum credit score to qualify for a good mortgage rate is 680, especially if you have a smaller down payment or a higher debt ratio. However your credit number isn’t everything. To qualify for the best pricing you need a 2 year track record of managing your credit with no major delinquencies.
A will is a legal declaration, by which a person leaves instruction on what to do with their assets and personal belongings upon their death. Wills can cover instruction for a wide array of items, including but not limited your executor, how your assets will be distributed, and who will care for your minor children. Here are five important items that should be included in your will.
Your Will should specify who you wish to be your executor. An executor the person who will take over control of your assets upon your death, which is why appointing an executor is arguably one of the most important decisions you need to make regarding your will.
A trust lets you transfer ownership of your assets to certain individuals but still retain control of how those assets are distributed. If your heir has a habit of carelessly spending money, you can create a trust that gives them their inheritance over time, rather than in a lump sum.
If you want to leave a gift of personal property to certain people or establishments/organizations, it’s possible to include this in your Will. The legal term for leaving a gift is a legacy.
If you have children who are minors, you can name the person you want to have guardianship over them in the event that something happens to you or your spouse. A guardianship clause is not legally binding, but courts typically grant the request.
Distribution of Assets
Directing how your assets are distributed is the main reason for having a Will. It indicates how you want your property and assets distributed amongst those who survive you.
Debt problems are difficult to face, but need to be addressed before you reach the critical point of bankruptcy. When you find that you’re struggling to keep up with minimum payments on your loans, it may be time to consolidate you debt. Before looking into debt consolidation, ask yourself these questions to help determine if it’s your best option to manage your debt:
What is debt consolidation?
For those that qualify, debt consolidation is the process of combining two or more unsecured debts into one, which results in a single debt payment and lower total interest costs. This is done in an effort to lower interest rates and combine all of your payments into one manageable monthly payment.
When should I consider consolidating my debt?
For those people who are getting calls from collection agencies, and you find yourself struggling to keep up with the minimum payments on your credit cards, it may be time to explore debt consolidation as an option.
Is debt consolidation the best way to manage my debt?
It’s important to review all of your options to manage your debt. Consolidation is just one approach and there’s no guarantee that it’s your best option. Ultimately, you should engage a debt specialist or credit counsellor to help assess your current situation, go through your budget, and see what options are available for you to deal with your debt problem.