Cash is king! No wait, credit is king!
One thing I can certainly agree with is that credit is the key foundation that provides access to affordable home mortgages. Regardless of anything else, credit is the one key factor of your application that is almost entirely under your control …
If you disagree with the above statement, then its probably because you fit in with the majority of canadians across the country who do not have a strong working understanding of personal credit or how to use it to their advantage.
In fact, you’re more likely to have negative credit and not even know it.
A recent article in the Globe and Mail has a great exerpt from Kelley Keehn’s “The Money Book for Everyone Else”, and while I haven’t read the book, if the first chapter is any indication it might be something that should be on every high school student’s grade 12 final.
The start of a strong credit environment can only truly be achieved through education at the start of one’s “credit profile”.
Even if you are fully current on all of your credit cards and credit lines, your credit score may already be lower than you think. Mortgages, credit lines, credit cards, and even “frequently checking your credit” can hurt your ability to qualify for a mortgage despite always making your payments on time.
Often catching things early is the key to being able to negotiate a better deal. Properly trained and experienced mortgage brokers can look at and understand the big picture when it comes to your past, present, and future financial story.
If you’re in a situation where you are struggling with debt, current or in arrears, I would highly encourage you to speak to a CMI mortgage professional who can help assess your situation and provide crucial advice and guidance.
