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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.
Teranet–National Bank National Composite House Price Index
In October the Teranet-National Bank National Composite House Price IndexTM began the fourth quarter with a dip of 0.1% from the month before. The final quarter of the year is typically slow for the index, and the monthly decline was in line with the average of the last 10 Octobers, in five of which the index retreated. In short, it is too soon to herald a downward trend on the national home resale market. Indeed, if seasonal pressure were removed (seasonal adjustment), October would have been the third consecutive month of an underlying uptrend. Pulling the composite down on the month were retreats in the indexes for Edmonton (-1.0%), Winnipeg (-0.4%), Toronto (-0.2%), Hamilton (-0.2%), Calgary (-0.1%) and Montreal (-0.1%). Pulling it up were Quebec City (0.1%), Vancouver (0.2%), Ottawa-Gatineau (0.2%), Victoria (0.7%) and Halifax (1.3%). For Vancouver it was a first monthly rise in 15 months, consistent with a strong revival of home sales since August. For Ottawa-Gatineau, October was the seventh consecutive monthly rise, for a cumulative surge of 9.8%. Victoria has also had a good run, with gains in six of the last seven months. For Halifax it was the 10th advance in 12 months. For Toronto, on the other hand, October ended a run of six monthly rises. Same story for the five-month runs of Montreal and Winnipeg. According to the most recent data, however, the resale market remains balanced in Toronto and favourable to sellers in Montreal.
Unemployment rate unchanged in October
Following two consecutive months of growth, employment held steady in October. The unemployment rate was unchanged at 5.5%. On a year-over-year basis, employment grew by 443,000 or 2.4%, driven by gains in full-time work. Over the same period, total hours worked were up 1.3%. In October, employment increased in British Columbia and Newfoundland and Labrador, and was little changed in the other provinces. Employment was down for men in the core working ages of 25 to 54, and grew for the population aged 55 and over. Employment declined in manufacturing and construction. At the same time, employment was up in public administration and in finance, insurance, real estate, rental and leasing. The number of self-employed workers decreased, while the number of employees in the public sector increased for the second consecutive month.