Why might the credit score I receive be different from one a lender is using?

Why might the credit score I receive be different from one a lender is using?

A credit score you order for yourself may not be the same as a score produced for a lender.

This can happen even if they are created at the same time using the same information in your credit report because there are different types of credit scores that are designed to meet the needs of lenders.

A lender may put more weight on certain information depending on the reason it is calculating your score.

For example, it may want to assess your risk of becoming bankrupt or determine whether you qualify for a mortgage.

Your own credit score should still be in the same range as a score created for a lender.

Young families looking to lock in long-term

_{By Donald Horne | 28/02/2013 10:00:00 PM | 0 comments}

http://www.mortgagebrokernews.ca/news/breaking-news/young-families-looking-to-lock-in-longterm/171471/ 

 

Brokers, it may be time to check in with those young clients you helped into a condo five years ago. Dollars to donuts, they're now looking for houses and the kind of long-term mortgage that spells big bucks for brokers.

“They are telling me they want a 5-, 7- or even 10-year fixed mortgage,” says Bruce Flanagan, Premiere Mortgage Centre. “These young families are very specific; they are fuelling the renaissance in the Ossington, Dufferin Grove, the Junction… the baby has arrived, and they need space for the child and all the toys.”

With rates at  historical lows, the ‘Y’ Generation – also known as the Millennial Generation (20 to 30 year olds), are moving out of their condominiums and into those rejuvenated downtown neighbourhoods.

“You can find a house now (in Toronto) for $400,000 - $500,000 now. That is the big trend – people wanting to cash out of their condos,” says Flanagan. “They are having kids, growing up. They want to buy homes, with space – with a yard.”

The combination of low interest rates, more affordable housing rates within the city and the 20- to 30-year-old demographic are creating a perfect storm of young families looking for long-term mortgages.

“If you can get a 3.79 per cent mortgage on a 10-year term, why wouldn’t you?” asks Flanagan.

And Flanagan is finding that one mortgage deal quickly turns into others.

“I finished a deal with one client and I meet five more very quickly,” he says, as the young families have friends in similar situations – a baby on the way and looking to trade their condo for a house.

Alternative lenders beat up big banks

_{By Donald Horne | 05/03/2013 8:00:00 AM | 1 comments}

 
 http://www.mortgagebrokernews.ca/news/breaking-news/alternative-lenders-beat-up-big-banks/171493/

Alternative lenders were the clear winners from last year’s mortgage rule changes, seizing the lion’s share of consolidated volume from the big banks.

 

Home Trust and Equitable Trust led the charge in volume with dramatic increases. Equitable Trust had an incredible 2012, as consolidated volumes increased 52.3 per cent over 2011, buoyed by a strong Q4 2012, up 29.6 per cent over the same period the previous year.

 

“The mortgage bank segment continues to realize growth in the channel,” reads the D+H Q4 2012 Market Share Report. “Funded volumes in the channel for this segment increased by 30.8 per cent as at Q4 2012.”

 

Home Trust saw a year-over-year increase in consolidated volumes of 7.7 per cent, riding the wave of a great fourth quarter in 2012, racking up an 18.5 per cent increase over the same quarter in 2011.

 

The changes made back in June to the rules for mortgage insurance had a telling effect on the big banks – the key change limiting the amortization on insured mortgages to 25 years. It was expected that the changes would have brokers moving clients to monolines and alternative lenders – and the numbers have borne that out.

 

The big banks’ consolidated volumes dropped to 45.8 per cent of market share from 54.7 per cent in 2011, while mortgage banks increased their share to 39.3 per cent for 2012 from 30.2 per cent.

Non-conforming lenders and credit unions remained relatively steady for 2012 at 12.7 per cent and 2.2 per cent market share respectively. Unable to match the growth of alternative lenders, it is indicative of the need for credit unions to continue to beat the drum for brand presence in the market.

T.O. becomes North America's fourth-largest city

_{By Christopher Myrick | 05/03/2013 10:00:00 PM | 0 comments} 

http://www.mortgagebrokernews.ca/news/breaking-news/t-o--becomes-north-americas-fourthlargest-city/171495/

Data issued at a meeting of Toronto's Economic Development Committee may comfort brokers worried about sustainable housing demand, with Canada's largest city  now overtaking Chicago as North America's fourth largest city.

On February 6, Statistics Canada released its July 2012 population estimates, placing Toronto's population at 2,791,140. The U.S. Census Bureau puts Chicago’s at 2,707,120.
Toronto says it is now the fourth largest municipality in North America after Mexico City (third), New York City (second) and No. 1, Los Angeles.

Toronto has a population growth rate of about 38,000 people per year and has sustained that upward trajectory for the past decade, the city said.
 
While positive for the demand side of the market,brokers may be just as concerned about the supply side of the equation.

The CMHC says new home construction starts in the GTA are expected to be around 37,600 units this year. In the condo segment, in particular, rising inventory is expected to continue to dampen prices.

Data issued by RealNet on February 25 put the unsold highrise inventory at 20,782 units as of the end of January.