There is no shortage of “leisure suit Larry’s” out there, offering variations of “get out of debt quick” schemes, even going so far as to promote their services as debt consolidations. These services exist because nowadays so many Canadians are looking for ways to get out of debt fast.
There are several options available to those who are looking to rid themselves of debt. Some will take longer while some provide immediate debt relief. Some solutions to get out of debt will help your credit, but choose wisely. The wrong choice, the wrong method will further destroy your credit.
So how can you get out of debt fast without destroying your credit?
If you are a homeowner, the cheapest and most flexible solution is to consolidate your debt and reduce your monthly payment. You can achieve this by refinancing your first mortgage, taking out a small second mortgage or by opening a line of credit. Any of these options will prove the following benefits:
- This type of credit often charges much less interest than traditional credit cards and store cards
- Low payments will immediately increase your cash flow
- If you have a lot of debt, you can often borrow more from your home than an unsecure consolidation loan
If you are a homeowner who has struggled with credit, all is not lost. There are many lenders who do offer home equity loans even to those who have past credit problems.
In recent times banks have become much tighter with their lending practices. They will often decline a homeowner for a mortgage to consolidate debt, even if they have good equity. They cite reasons such as a bad credit history or the inability to prove their income. While banks may be shying away from these types of deals there are many lenders who are not.
There are a number of trust companies, private lenders and mortgage investment corporations who do help homeowners currently drowning in debt. You can find out about these types of lenders and access them through a local mortgage broker, one who specializes in working with people who have bad credit histories.
If you don’t own your home and depending on your credit, other choices to get out of debt fast include unsecured debt consolidation, credit counselling, consumer proposals and bankruptcy.
Before going to your bank, a debt counsellor or in the worst case scenario, a bankruptcy trustee, speak to a good mortgage broker about your options – it could be a choice that saves your credit and puts you on the road to increased wealth and financial stability. For more information about how to get out of debt fast please visit http://www.gtamortgagematters.com/
Tuesday, May 24, 2011
Monday, May 16, 2011
Bad Credit Refinancing is Available to Homeowners in Ontario – is it the best choice?
Homeowners in Ontario, especially in Toronto, are amongst the most highly taxed in the country. These taxes in combination with rising gas prices and ever-present inflation have made it increasingly difficult for the middle class homeowner to make ends meet.
To make matters worse, the Federal Government has tightened its mortgage lending guidelines across Canada and the Bank of Canada has made a number of quarter point increases to the national lending rate.
The economy in Ontario is steadily improving but a number of Canadians are coming out of the recession with bruised credit. The automotive manufacturing industry has endured mass layoffs, as have the supporting industries that supply the automotive manufacturing sector. They are not alone; many service sectors like the financial services sector have suffered similar circumstances.
Those who have bad credit have fewer choices when it comes to bad credit refinancing but that doesn’t mean that it’s not available.
Bad credit refinancing is available to homeowners in Ontario. It can be a good choice for families who need to consolidate debt, cover the costs of home improvements or pay for their children’s education.
If you are considering pursuing bad credit refinancing, you will have more negotiating power if you thoroughly understand the current state of your credit and financial profile, thereby knowing what value you present to a prospective borrower.
You can do this by obtaining your credit report to see your credit score. It may not be as bad as you think. Most banks require a minimum credit score in of 680 before they will consider an applicant for credit. CMHC will approve high ratio insurance for an individual with a credit score of as little as 620 if they have not had any late payments in the past 3-4 years and are free of bad debt.
Trust Companies, credit unions and mortgage investment corporations all offer CMHC insured mortgage refinancing to individuals who have credit scores that are above 620 but less than the banks minimum of 680.
If your credit score was 670, then you may want to consider strengthening it somewhat so that you can qualify for a mortgage that is financed by the bank. A mortgage financed by the bank is always a more desirable option because they are able to offer the lowest, discounted mortgage rates.
Whether you want a mortgage financed by the bank, a trust company, finance company or private equity lender, you will score the best deal by going through a mortgage broker. A mortgage broker can look at your credit application and let you know exactly what type of credit products you qualify for. For more information visit http://www.gtamortgagematters.com/
To make matters worse, the Federal Government has tightened its mortgage lending guidelines across Canada and the Bank of Canada has made a number of quarter point increases to the national lending rate.
The economy in Ontario is steadily improving but a number of Canadians are coming out of the recession with bruised credit. The automotive manufacturing industry has endured mass layoffs, as have the supporting industries that supply the automotive manufacturing sector. They are not alone; many service sectors like the financial services sector have suffered similar circumstances.
Those who have bad credit have fewer choices when it comes to bad credit refinancing but that doesn’t mean that it’s not available.
Bad credit refinancing is available to homeowners in Ontario. It can be a good choice for families who need to consolidate debt, cover the costs of home improvements or pay for their children’s education.
If you are considering pursuing bad credit refinancing, you will have more negotiating power if you thoroughly understand the current state of your credit and financial profile, thereby knowing what value you present to a prospective borrower.
You can do this by obtaining your credit report to see your credit score. It may not be as bad as you think. Most banks require a minimum credit score in of 680 before they will consider an applicant for credit. CMHC will approve high ratio insurance for an individual with a credit score of as little as 620 if they have not had any late payments in the past 3-4 years and are free of bad debt.
Trust Companies, credit unions and mortgage investment corporations all offer CMHC insured mortgage refinancing to individuals who have credit scores that are above 620 but less than the banks minimum of 680.
If your credit score was 670, then you may want to consider strengthening it somewhat so that you can qualify for a mortgage that is financed by the bank. A mortgage financed by the bank is always a more desirable option because they are able to offer the lowest, discounted mortgage rates.
Whether you want a mortgage financed by the bank, a trust company, finance company or private equity lender, you will score the best deal by going through a mortgage broker. A mortgage broker can look at your credit application and let you know exactly what type of credit products you qualify for. For more information visit http://www.gtamortgagematters.com/
Monday, May 9, 2011
Bad Credit Consolidation Loans Can be an Expensive Option
If you have accumulated debt that has become unmanageable and you own your home, then you realize that there is a lot to lose.
Bad credit debt consolidation can be very expensive. The banks usually recommend lines of credit as a solution for consolidating debt; only, lines of credit are akin to taking out one giant credit card and bear monthly compound interest.
Some finance companies offer unsecured bad credit consolidation loans, however they bear interest of 20%-30%.
Beware of companies that promote debt consolidations by suggesting that you participate in a program that freezes the interest on your credit products or reduces the amount of debt that you owe. This is often a ploy and leads you to sign up for credit counselling or filing a consumer proposal that will ultimately destroy your credit.
The most affordable type of bad credit loan is a home equity loan. This could be achieved through refinancing a first mortgage or by obtaining a second mortgage. Let’s explore both options.
To consolidate debt, your lowest interest option would be to refinance your first mortgage. Depending on the amount of debt that you are consolidating, refinancing your mortgage will immediately increase your cash flow. Your credit payments will disappear and your mortgage payment will only increase slightly.
If you obtain a second mortgage, the interest will be slightly higher than a first mortgage, however, it will significantly reduce the amount of money you are spending on credit payments.
The ideal way to get the best deal on a consolidation loan is to consult a mortgage broker. Mortgage brokers are knowledgeable about all the different lender products and can often negotiate a lower rate at your bank than you would get if you went to the bank on your own. In cases where the applicant has good credit, the bank will often pay the mortgage brokers fees.
Those who require a bad credit consolidation loan stand to get the most benefit out of a relationship with a mortgage broker because depending on how bad your credit is, mortgage brokers are usually the only way to access a private equity mortgage. For more information visit http://www.gtamortgagematters.com/
Bad credit debt consolidation can be very expensive. The banks usually recommend lines of credit as a solution for consolidating debt; only, lines of credit are akin to taking out one giant credit card and bear monthly compound interest.
Some finance companies offer unsecured bad credit consolidation loans, however they bear interest of 20%-30%.
Beware of companies that promote debt consolidations by suggesting that you participate in a program that freezes the interest on your credit products or reduces the amount of debt that you owe. This is often a ploy and leads you to sign up for credit counselling or filing a consumer proposal that will ultimately destroy your credit.
The most affordable type of bad credit loan is a home equity loan. This could be achieved through refinancing a first mortgage or by obtaining a second mortgage. Let’s explore both options.
To consolidate debt, your lowest interest option would be to refinance your first mortgage. Depending on the amount of debt that you are consolidating, refinancing your mortgage will immediately increase your cash flow. Your credit payments will disappear and your mortgage payment will only increase slightly.
If you obtain a second mortgage, the interest will be slightly higher than a first mortgage, however, it will significantly reduce the amount of money you are spending on credit payments.
The ideal way to get the best deal on a consolidation loan is to consult a mortgage broker. Mortgage brokers are knowledgeable about all the different lender products and can often negotiate a lower rate at your bank than you would get if you went to the bank on your own. In cases where the applicant has good credit, the bank will often pay the mortgage brokers fees.
Those who require a bad credit consolidation loan stand to get the most benefit out of a relationship with a mortgage broker because depending on how bad your credit is, mortgage brokers are usually the only way to access a private equity mortgage. For more information visit http://www.gtamortgagematters.com/
Monday, May 2, 2011
Bad Credit Home Loans Too Easy to Come by?
Bad credit home loans used to be relatively easy to come by but times have changed and this is no longer the case. Unless you have at least 20%-25% equity in your home, you may find it challenging to qualify for a bad credit home loan.
Most banks will require that you have a minimum credit score of 680 to qualify for a conventional mortgage. If your credit score is lower, it is reasonable to assume that they will treat you as having bad credit.
Also, if you are self-employed or have difficulty proving your income you may be considered high risk, comparable to someone with bad credit.
If you have bad credit or difficulty proving your income, you can still obtain a bad credit home loan. In most cases, the best place to find this type of loan is through a local mortgage broker. Private companies and individuals generally offer bad credit home loans.
These companies and individuals entrust the mortgage broker to bring them qualified candidates and administer their mortgages. They will grant a bad credit home loan based on the equity in the applicant’s home, not based on their credit.
If a bank declines you for a mortgage, this does not mean that you are instantly a candidate for a bad credit home loan. Your credit may not be that bad at all. In the past couple of years, the major Canadian banks have tightened their lending practices making it much harder to get approved for a mortgage.
In many cases, homeowners think that they have worse credit than they actually have because the bank has declined their credit application. There are many Schedule B banks, credit unions and trust companies that offer mortgages at bank interest rates to people who don’t qualify for mortgage financingthrough the bank.
If being declined from your bank is the reason you think you have bad credit and you have not otherwise made late payments or defaulted on credit; then you may want to consider requesting your credit report. If you decide to consult a mortgage broker, they can educate you about possible issues with your financial profile at the same time discussing possible options that will lead you to achieve your financial goals.
If you have already applied to numerous lenders for home loan financing, stop. This will damage your credit score. Each application for credit in excess of 4 per year will have a negative impact on your credit score.
Before you can continue looking for home loan financing, you must first figure out how bad your credit and financial profile is. You may be pleasantly surprised to learn that it’s not as bad as you may have thought. For more information visit http://www.gtamortgagematters.com/
Most banks will require that you have a minimum credit score of 680 to qualify for a conventional mortgage. If your credit score is lower, it is reasonable to assume that they will treat you as having bad credit.
Also, if you are self-employed or have difficulty proving your income you may be considered high risk, comparable to someone with bad credit.
If you have bad credit or difficulty proving your income, you can still obtain a bad credit home loan. In most cases, the best place to find this type of loan is through a local mortgage broker. Private companies and individuals generally offer bad credit home loans.
These companies and individuals entrust the mortgage broker to bring them qualified candidates and administer their mortgages. They will grant a bad credit home loan based on the equity in the applicant’s home, not based on their credit.
If a bank declines you for a mortgage, this does not mean that you are instantly a candidate for a bad credit home loan. Your credit may not be that bad at all. In the past couple of years, the major Canadian banks have tightened their lending practices making it much harder to get approved for a mortgage.
In many cases, homeowners think that they have worse credit than they actually have because the bank has declined their credit application. There are many Schedule B banks, credit unions and trust companies that offer mortgages at bank interest rates to people who don’t qualify for mortgage financingthrough the bank.
If being declined from your bank is the reason you think you have bad credit and you have not otherwise made late payments or defaulted on credit; then you may want to consider requesting your credit report. If you decide to consult a mortgage broker, they can educate you about possible issues with your financial profile at the same time discussing possible options that will lead you to achieve your financial goals.
If you have already applied to numerous lenders for home loan financing, stop. This will damage your credit score. Each application for credit in excess of 4 per year will have a negative impact on your credit score.
Before you can continue looking for home loan financing, you must first figure out how bad your credit and financial profile is. You may be pleasantly surprised to learn that it’s not as bad as you may have thought. For more information visit http://www.gtamortgagematters.com/
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