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A 700 Credit Score Doesn’t = Good Credit
Theres more to a credit report than a score. You can have good income and a 700credit score(which is about average) and still not qualify for a mortgage. The reason is that lenders generally look for one key factor: repayment history. Suppose, for example, that you have a 710 credit score but only one credit account. Worse yet, that one account is a credit card that youve had for only two months. Before that, youve had either no credit or bad credit (most likely, any bad credit would be from a few years ago, given your score). In this case, your 710 score may not get the job done. Lenders often want to see a minimum of 1-2 years of satisfactory payment history and at least two trade lines (loans or revolving credit accounts). A trade line can consist of a major credit card with a $1,500+ limit (a rough rule of thumb), a revolving credit line, a reported lease, or an instalment loan (like a vehicle or investment loan). So, if you have no credit and you hope to apply for a mortgage, start building credit pronto. Get a credit card (even if its secured), a small instalment loan, a Futureshop card, whatever. And dontevermake a late payment. Many lenders require squeaky clean repayment history for at least 1-2 years. Of course, there are lots of exceptions to the aboveincluding cases where a co-signor or alternative credit can make up for traditional repayment history. (As noted in CMHCsNewcomerprogram, Alternative credit can include things like proof of satisfactory rent payments and utility payments for 12 months). Keep in mind, however, that alternative credit is an exception and not a rule. Speak with a mortgage professional if you have questions about your own unique circumstances.
Canada: Residential sales reached a new record in September
Seasonally adjusted home sales rose 0.9% in September to a monthly record of 56,422 units. Sales in Ontario missed Augusts record by a hair due to a 5.3% monthly decline in Toronto. Records were nonetheless registered in Ottawa and Hamilton. In the Province of Quebec, sales were at a record level in the Quebec CMA and in Gatineau, and close to August records in Montreal. In B.C., transactions reached a record outside the three main markets of Vancouver, Fraser Valley and Victoria. There were also sales records in Nova Scotia and New Brunswick. The active-listings-to-sales ratio indicates that the Canadian home resale market was favorable to sellers in Ontario Quebec, the Maritimes Provinces and marginally so in B.C. The market was balanced in the four other provinces.
PROMISES, PROMISES AND MORE PROMISES
Canadas Parliament re-convened today with a ceremonial Speech from the Throne delivered by the Governor General. Canadas continued response to the COVID-19 pandemic took centre-stage, while providing a lens for a plethora of broader promises: an extension of the wage subsidy, expanded employment insurance, investments in childcare, reaffirmed commitments to universal pharmacare, and green infrastructure investments among many others. Given the exhaustive list of priorities, this Speech is unlikely to bring the minority government down as it provides plenty of hooks for negotiations in the lead-up to a Fall update where details will be laid out. It clearly signals more fiscal spending ahead for Canada leaving the question not if but how much. But this was largely channeled ahead, so the market reaction has been mutedor more likely, it is eclipsed by broader US and global developments. There is little beyond lip service by way of fiscal restraint. This will be left to the Finance Minister to make inevitable trade-offs in her first budget this Fall, particularly as she may need to reserve some firepower for second waves. Source: Scotiabank https://www.scotiabank.com/ca/en/about/economics/economics-publications/post.other-publications.fiscal-policy.fiscal-pulse.federal.federal-budget-analysis.federal-throne-speech--september-23--2020-.html