January 2015
 
Kelly Hudson
Mortgage Professional

Dominion Lending Centres Aegis Mortgage Services

Phone: 604-312-5009
Cell:
Fax: 1-888-378-1286
E-mail
Website

 

HAPPY NEW YEAR TO YOU AND YOUR FAMILY!

Cheers to a new year and another chance for us to get it right. - Oprah Winfrey

 
TIPS TO IMPROVE YOUR CREDIT RATING

1. Always pay your bills on time. (The payment of utility bills such as phone, cable and electricity are not recorded in your credit report, however many cell phone companies report late payments.)

2. Pay Debts as quickly as possible.

3. Try to pay your full balance off on all cards every month whenever possible.

4. Don’t go over the credit limit on your credit cards.

5. Don’t make too many credit applications (use a Mortgage broker). Your score doesn’t change if you personally make credit inquiries.

6. Contact creditors if you’re having trouble making payments and work out solutions.

7. Read the statements you receive from your credit card company carefully. Keep yourself up-to-date with any changes or fee increases.

8. Keep your credit usage to no more than two credit cards and one Line Of Credit. Avoid store credit cards.

9. Get a copy of your credit report from all three credit-reporting agencies at least once a year and make sure they’re in order.
 

 

About DLC Leasing Inc

* DLC Leasing is the leasing division within Dominion Lending Centres Inc.

* Our leasing programs provide up to 100% financing on business-related equipment.

* Leasing options include new equipment leasing; used equipment and vehicle leasing; customized solutions through vendor finance programs; and lease-backs –where the lender buys equipment from a business owner and the owner leases it back.

* Technology, heavy equipment and trailers, furniture and hospitality equipment, and manufacturing and industrial equipment are just a few examples of available leasing options.

* With access to multiple lending sources, Dominion Lending Centres’ Lease Professionals can cater to leasing deals for a variety of credit scenarios ranging from A to C credit quality.

* Because many of our Lease Professionals are also licensed mortgage agents, we can offer standard equipment leases and creatively structured solutions for seasonal, new or growing companies.

* Working with someone who is both a lease and mortgage expert enables you to even use commercial and residential mortgage and property credit line products, alone or in combination with lease financing, to help achieve the best solutions for your equipment acquisition needs.

* Our Lease Professionals can even break up large-dollar transactions into multiple leases across a number of funders to ease and simplify the approval process.

 

Hi

Welcome to the start of another year and to the January issue of the Mortgage Financing Journal, which is designed to help you make a more informed decision the next time you’re buying or selling a property!

This month’s edition delves into ten secrets of sophisticated real estate investors. It also highlights some important tips to help us protect our credit scores. Please feel free to ask questions or offer feedback regarding anything outlined below via phone or email.

Thanks again for your continued support and referrals!

There are many things that can affect the market value of a property, ranging from interest rates to home improvements to the mood of the seller.  Below are some of the key dynamics that tend to have the largest influence on home values that every homeowner or aspiring homeowner should be aware of.  These factors are often gauged by sophisticated Real Estate investors before they decide to invest in an area:  

1. Increase in Disposable Incomes

This is one of the most important indicators. If a town’s average disposable income is increasing faster than the national average, real estate prices are poised to follow suit.  Key indicators: a) increased average income; b) decreasing income tax rates; c) increasing retail sales.  Be wary of towns where demand is driving values upward while the average income is remaining flat. 

2. Job Growth & Migration

It pays to read the news regularly in the town you would like to invest in or have invested in.  Be on the lookout for announcements of new jobs, major expansions, or new employers. Ideally you can purchase in areas where the population is growing faster than the provincial average and where the reputation of the town, city or region is strong.

3. Political Climate

Business friendly politicians generally equal real estate friendly investment areas.  Look for regions where development is wanted, not shunned.  Look for areas with forward-looking economic development offices where they sell the area to potential employers. Progressive towns attract business while other towns lose it. 

4. Infrastructure Expansion

Here’s another reason why reading local news in areas that you plan to invest in can pay off for you big time.  Look for planes, trains, highways, sewers, land annexation or expansion plans.  Don’t buy until the construction begins or until plans have been completely firmed up, it can be dangerous to buy based on rumors alone.  Trains and rapid transport are huge opportunities (towers that spring up at subway stops as an example). To enjoy a nice price increase relative to other areas of the town, city or region not affected by the infrastructure enhancement, try to buy within 800 meters of the station, or exit/entrance etc. 

5. Areas Of Renewal

If chosen correctly this consistently provides the biggest bang for investment dollars.  This is best defined as areas that are moving up from one economic class to the next, often described as “tough, yet funky”.  In these areas, you’ll witness a mix of run down to well-kept, recently fixed up properties.  Often you’ll see these areas mentioned in the news, every city and most towns have areas like this.  The local perception is the hardest to change, so often locals miss the opportunity.  

  

6. Mortgage Interest Rates

Low interest rates allow a greater proportion of renters to become homeowners, which in turn can lead to an increase in home sales and therefore push prices higher.  That said they don’t significantly increase mortgage costs (on a $100K mortgage a quarter % increase in rates only increases the payments by about $14). With interest rates historically low for the past several years, this is less of a factor now than it would be when rates first dropped.

7. Maximizing Value and Zoning Opportunities

Sophisticated real estate investors look first at a properties physical attributes, and then they examine how they may be able to change the property to optimize profit way beyond just renovations. As an example, an old hotel that is converted into loft apartments (advanced), or taking a single family home and converting it to a duplex (less advanced but still can be tricky).  You need to know zoning bylaws and tenant regulations to make the transition successful. A small percentage of properties will have this potential, but make sure you have the required finances and expertise before taking this on, or find a partner. 

8. Buy Wholesale; Sell Retail

You can buy properties at wholesale any day of the week in any town across the country, there are many investors across Canada who make their entire livings this way. This can include buying rundown properties and fixing them up, developing raw land or buying properties that are going to foreclosure.  In Canada, accessing foreclosure properties is tougher than in other countries such as the US.  The best opportunity for this in Canada is the pre-foreclosure market, some investors will advertise targeting distressed homeowners and then provide them with a much needed opportunity to sell.

9. Stand Out

Quality marketing is a real estate investor’s best kept secret.  You must be proficient to get above market rents and values for your properties. An example of this would be how two incredibly similar houses in the same neighbourhood can easily sell or rent for a 5-10% variance from each other. Matching your message to your prospective target in a compelling way is critical.  

10. Renovations and Sweat Equity

Areas in transition are great sources for homes that need improvements.  Look for well-built but neglected homes.  Keep the work simple and in line with what a renter or owner is looking for. Remember, smaller aesthetic investments such as in paint, flooring or carpeting can provide the biggest bang for your buck.  Landscaping and exterior work also typically provide a solid return.

 

 

At this time of year, especially if we were extra generous with our gift giving, it’s important to review the top factors that can lower our credit scores.  Please also see “Tips to Improve Your Credit Rating” on the left in this issue of the Mortgage Financing Journal.

  1. There are too many consumer finance company accounts on your credit report.  Having too much available credit can hurt your score. If you have several consumer accounts try to consolidate those balances and close the accounts.
  2. Your account balances are too high. As a rule of thumb keep your credit card balances below 35% of the available limit. High balances ongoing will negatively affect your credit score.
  3. There is not enough recent revolving account information on your credit report. Using your credit cards regularly is an important part of building healthy credit.
  4. There have been multiple lending institutions pulling credit reports on you.  This is part of the advantage of using a Mortgage Broker; we pull one credit report and then go to several lenders vs. having several lenders each pulling your credit bureau.
 
 
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  • We have more than 2,200 Mortgage Professionals from more than 350 locations across the country!
  • Our Mortgage Professionals are Experts in their field and many are ranked among the best nationally.
  • We work for you, not the lenders, so your best interests will always be our number one priority.
  • We have more than 100 mortgage programs, making it easy to choose the best fit for your unique situation.
  • We close loans in all 10 provinces and 3 territories.
  • We can process your mortgage in as few as 7 days.
  • We are the preferred mortgage lender for several of Canada’s top companies.
  • Dominion Lending Centres’ Mortgage Professionals are available anytime, anywhere, evenings and weekends – and we’ll even come to you!