Mike Cara

Mike Cara: Equifax® Certified Credit Professional

When you apply for a mortgage, your credit score is only one part of the story.

As an Equifax® Certified Credit Professional, Mike Cara combines specialized credit knowledge with more than 30 years of experience in banking and finance to help borrowers understand how their credit profile can affect their mortgage options.

For homebuyers and homeowners in Peterborough, the Kawarthas and Central Ontario, that experience can be particularly valuable when a mortgage application isn't straightforward.

Your Credit Score Is Not Your Entire Credit Profile

Many borrowers assume mortgage qualification comes down to a single number:

Their credit score.

It doesn't.

Mortgage lenders may consider much more than the score itself. Your overall credit profile can include:

• Payment history
• Outstanding balances
• Credit utilization
• Age and type of credit accounts
• Recent credit inquiries
• Collections
• Missed or late payments
• Consumer proposals or bankruptcies
• Overall debt obligations
• How credit has been managed over time

Two people with similar credit scores can therefore present very different credit profiles to a mortgage lender.

Understanding those differences is an important part of developing the right mortgage strategy.

What Does Being an Equifax® Certified Credit Professional Mean?

Mike Cara's Equifax® Certified Credit Professional education provides additional training in understanding consumer credit and the information contained within a credit report.

For a mortgage broker, that knowledge has practical applications.

Rather than simply looking at a credit score and deciding whether it is "good" or "bad," Mike Cara can examine the broader credit picture and consider how a lender may interpret it during mortgage underwriting.

That can be particularly important when dealing with circumstances such as:

• Past credit problems
• Consumer proposals or bankruptcies
• Collections or missed payments
• High revolving credit balances
• High credit utilization
• Limited or newly established credit
• Recent credit inquiries
• Debt consolidation
• Rebuilding credit after financial difficulties
• Strong credit scores accompanied by an unexpected mortgage decline

A credit issue doesn't automatically mean there is no mortgage solution.

It may mean the application needs to be approached differently.

Why Credit Knowledge Matters When Getting a Mortgage

Mortgage lenders don't all evaluate borrowers in exactly the same way.

Canada's mortgage market includes banks, credit unions, monoline mortgage lenders, alternative lenders and private lenders.

Different lenders can have different underwriting guidelines, risk tolerances and credit requirements.

This is where mortgage experience and credit knowledge can become particularly valuable.

A borrower who doesn't meet the requirements of one lender may potentially fit the criteria of another.

In other situations, it may make more sense to address specific credit issues before applying rather than submitting mortgage applications prematurely.

The objective isn't simply to find a lender. It's to understand the borrower first, then determine which mortgage strategy makes sense.

Good Credit Doesn't Always Mean Mortgage Approval

One of the biggest misconceptions about mortgages is that an excellent credit score guarantees approval.

It doesn't.

A lender may still decline an application because of:

• Income verification
• Debt-service ratios
• Property type
• Property location
• Employment history
• Self-employed income
• Source of down payment
• Existing debt
• Mortgage amount
• Property valuation
• Other underwriting requirements

Likewise, someone with bruised credit may still have mortgage options depending on their income, equity, down payment, property and overall financial circumstances.

This is why Mike Cara encourages borrowers to look beyond the number displayed on a credit report.

The question isn't simply:

"What's my credit score?"

The better question is:

"How will a mortgage lender view my complete application?"

What If You Have Bad Credit?

Bad credit doesn't necessarily mean no mortgage.

But it can affect which lenders are available, the amount of down payment or equity required, the interest rate, lender fees and other mortgage terms.

The first step is understanding what caused the credit problem.

Was it:

• A temporary loss of employment?
• Divorce or separation?
• Unexpected expenses?
• Business difficulties?
• High credit utilization?
• Missed payments?
• Collections?
• A consumer proposal?
• Bankruptcy?
• Simply too much debt?

The circumstances behind the credit problem can matter.

A borrower who experienced a one-time financial setback and has since re-established credit may present a very different application from someone whose debts and missed payments are continuing to increase.

The complete story matters.

Helping Borrowers With Challenging Credit Situations

Credit challenges can happen for many reasons.

A divorce, illness, job loss, business difficulties, unexpected expenses or relying too heavily on credit during a difficult period can affect an otherwise responsible borrower's credit history.

The important issue is determining what happened, where the borrower stands today and what options are realistically available.

As both a Licensed Ontario Mortgage Broker and Equifax® Certified Credit Professional, Mike Cara can review credit in the context of the complete mortgage application and help develop an appropriate strategy.

Sometimes that means pursuing a mortgage now.

Sometimes it means restructuring debt.

Sometimes an alternative lender may need to be considered.

And sometimes the best recommendation is to improve specific areas of the credit profile before applying again.

The right answer depends on the individual borrower.

What If Your Bank Declined Your Mortgage?

A mortgage decline can be frustrating—especially when you believed your credit was good enough to qualify.

But a decline doesn't necessarily mean your credit score was the problem.

The first question should be:

Why was the mortgage declined?

Mike Cara can review the application to help identify whether the issue involved:

• Credit
• Income
• Debt-service ratios
• Property
• Down payment
• Employment
• Documentation
• Lender policy
• Another underwriting requirement

One lender's decision doesn't necessarily represent the entire mortgage market.

Different lenders can assess risk differently.

Understanding the reason for the decline is therefore important before deciding what to do next.

Don't Wait Until Credit Problems Become Serious

Credit problems often don't appear overnight.

Balances may gradually increase.

Minimum payments become larger.

Available credit becomes smaller.

A line of credit starts being used to cover expenses that were previously paid from income.

Eventually, payments can become difficult to manage.

If you're a homeowner with available equity, addressing the situation earlier may provide more options than waiting until payments are missed and credit deteriorates further.

Depending on your circumstances, potential strategies may include:

• Mortgage refinancing
• Debt consolidation
• Home-equity financing
• Restructuring existing debts
• Alternative mortgage financing
• Developing a plan to rebuild credit before applying

A conversation with Mike Cara doesn't mean you need to take out another mortgage.

Sometimes understanding your options is the most valuable first step.

Credit and Debt Consolidation

Credit knowledge can also be important when a homeowner is considering using home equity to consolidate debt.

Moving high-interest credit cards or other consumer debts into mortgage financing can potentially reduce monthly payments and borrowing costs.

But consolidation needs to be approached carefully.

The analysis should consider:

What debts are being paid?

What interest rates are currently being charged?

What will the new mortgage cost?

How much will monthly cash flow improve?

How long will the consolidated debt take to repay?

Will the paid-off credit accounts remain paid off?

Lowering a monthly payment isn't necessarily the same as reducing the total cost of borrowing.

That's why debt consolidation should be treated as a financial strategy—not simply as a way to access additional home equity.

More Than 30 Years of Experience in Banking and Finance

Professional education is valuable, but it becomes considerably more useful when combined with experience.

Mike Cara has more than 30 years of experience in banking and finance and has built his mortgage practice around helping borrowers understand their options, particularly when their circumstances don't fit neatly into conventional lending guidelines.

Mike Cara's professional qualifications include:

• Licensed Ontario Mortgage Broker
• Equifax® Certified Credit Professional
• Certified Canadian Reverse Mortgage Consultant®

That combination of experience, licensing and continuing professional education supports a simple philosophy:

A mortgage recommendation should be based on an understanding of the complete financial picture—not simply on chasing the lowest advertised rate.

Why Homeowners Choose Mike Cara

Over 30 years of experience in banking and finance is just the beginning.

Mike Cara combines professional licensing, specialized education, industry involvement and local business credentials to help homeowners and homebuyers make informed mortgage decisions.

Mike Cara's professional background includes:

• Over 30 Years of Experience in Banking and Finance
• Licensed Ontario Mortgage Broker
• Equifax® Certified Credit Professional
• Certified Canadian Reverse Mortgage Consultant®
• Founder of The Mortgage Learning Centre
• BBB-Accredited Business with an A+ Rating
• Member of the Peterborough & Kawarthas Chamber of Commerce
• Member of the Canadian Mortgage Brokers Association
• Member of Mortgage Professionals Canada

Because when it comes to mortgages:

Credit is more than a score—and experience matters.

Talk to Mike Cara About Your Mortgage and Credit

If you're looking for a mortgage broker in Peterborough, the Kawarthas or Central Ontario and you're concerned that your credit may affect your ability to qualify, don't assume you have no options.

Your credit score is important.

But so are your income, debts, equity, down payment, property, payment history and the circumstances behind previous credit difficulties.

The first step is understanding the complete picture.

Talk to Mike Cara before deciding what your credit means for your mortgage options.

Mike Cara — Your Local Trusted Mortgage Broker in Peterborough, Ontario

Your Mortgage Advocate

Over 30 years of experience in banking and finance.

Mike Cara

Mortgage Broker

Equifax® Certified Credit Professional

Certified Canadian Reverse Mortgage Consultant®

Mortgage financing is subject to lender approval, borrower qualification, credit, income, satisfactory documentation, property valuation and applicable underwriting requirements. Credit requirements vary by lender and mortgage program. Credit education and mortgage advice do not constitute credit-repair, legal or financial-planning services.