Effective Ways to Improve Your Credit Score

by with No Comment Homeowner In-Training Program

If you’ve been struggling to meet your financial obligations, there are higher chances that your credit score has gone down. Having a low credit score to a point that you can’t qualify for a mortgage loan can be a real concern to any prospective homebuyer. Your credit score is one of the factors that lenders look at to determine whether you can qualify for a mortgage or not.

But what is a “good” credit score? In Canada, a good credit score starts from around 680 for most traditional lenders. If my credit score is poor, how do I improve my credit score?

The following are some of the helpful ways to increase your credit score.

  1.     Review your current credit reports and score

One of the first steps that you should take to improve your low credit score is to check your current status. It helps you identify the factors that are negatively impacting your credit score. You can check credit bureaus such as TransUnion and Equifax and get your credit score report for an in-depth review.

Factors such as late bills payments, missed payments, and high credit score balance are some of the common elements that can negatively impact your credit score. Also, confirm if there are any errors that are contributing to your poor credit score ratings.

If you identify any errors, consider filing a dispute with the relevant authorities so that the report can be rectified.

Typically, understanding “where you are” first is one of the first steps to improve your credit.

 

  1.     Pay your bills on time

Paying your bills late can negatively impact your credit score ratings. Consider changing your bill payment approach and start paying all your outstanding bills in time. Once you start doing so, your credit will improve in a short period of time.

Lenders will use your new bill payment track record to gauge your ability to repay the mortgage loan.

  1.     Consider going for higher credit limits

When you decide to go for a higher credit limit, you will drastically lower your credit utilization. The trick is to request a higher credit limit while maintaining the same balance. You can do so by engaging your card issuer and making a formal credit limit request.

Note: Always avoid making a “hard credit inquiry” (which can typically happen during a credit limit increase) as it can have an impact on your credit score.

  1.     Merge your loans

If your credit balance is too high and you can no longer manage to pay it off sooner, you need to come up with a strategy that can save you thousands of dollars in interest payments. If you find yourself in such a situation, one option is to go for a low-interest balance transfer credit card.

In Canada, you can get a low-interest balance transfer credit card that charges minimal interest of less than 1% for a period of six months. For you to maximize this strategy, you should consider paying a higher percentage of your debt or clear everything during the set low-interest periods.

In addition, you can seek a personal loan if you can get one that attracts low-interest rates. Consolidating different types of loans will help you clear off your significant credit card balance within a short period of time thus, improving your low credit score ratings.

 

  1.     Become an authorized user or get a secured credit card

If you have a friend or even relative whose credit card account has a high credit history and a good credit score, you can request to be added as one of the authorized users. The good thing is that even without giving you their credit card to use, their excellent credit score history will positively impact your score.

Getting a secured credit card is another great way of improving your credit score. If you have a poor credit score or if you don’t have any credit history, you can have a hard time applying for a normal credit card.

You can get a secured credit card from a bank if you can manage to raise the required deposit and use it to build your credit score ratings. The best approach is to ensure that you pay your credit card balance on time so that you can build a good credit score history fast.

 

Conclusion

Having a low credit score should not discourage you from pursuing your homeownership goal. In our homeowner in-training program, these are the things that we cover to help renters improve their credit score ratings. With good credit (alongside saving up a downpayment), our clients are able to qualify for traditional mortgage loans after the end of our program.

 

Photo by Mikhail Nilov from Pexels 



Why Is Our Program Called A Homeowner In-Training Program?

by with No Comment Homeowner In-Training Program

Getting into homeownership takes dedication, work, and financial planning. Learn more as to why our program is called a homeowner in-training program.

 A lot of people have asked us why our program is a “Homeowner-in training” program. Well, if you’ve been a renter, I’m sure you somehow understand how difficult it is to transition from renting a home to becoming a homeowner. We see it all the time and that’s why we are here to guide you along the way through our program.

Most of our clients are first-time homebuyers who have been renting for years (or some since inception). To some, getting into homeownership is a totally different ball game compared to just renting as it requires hard work, proper planning, maintenance, preparation, and financial discipline.

Under our homeowner in-training program, we help renters build those skills and curate a game plan for them so they can be successful in our program.

Why is this program unique?

First, our homeowner in-training program is dedicated to making renters proud homeowners who are equipped with the right financial literacy when it comes to homeownership. When you enroll in our program, we provide you with customized financial actionable steps that outline what you need to achieve so that you can qualify for a mortgage at the end of the term. This works out as some of our clients need this guidance and a “roadmap” to get their financial situation in order.

Second, we’ll walk with you every step of the way to ensure that you are moving in the right direction. As a company, we organized “pulse checks” every quarter to ensure all our “homeowner in-trainees” are improving their financial status. We have a team of experienced professionals ranging from mortgage brokers, financial planners, and credit specialists who’d work with you to ensure your financial and homeownership goals are on the right track.

Third, our rent-to-own program gives renters the freedom to practice being homeowners before they can actually own the house. If you own a home in the future and get a leaking faucet, do you call your mortgage provider (the bank) and ask them to fix  your leaking faucet? We hope your answer is a big NO. If yes, then maybe this program or homeownership is not the best fit for you right now (it’s the renter mindset we’re removing here). In our program, we let you get into the “homeowner” mindset already and this will help you to become more prepared for it in the long run. It will be your sole responsibility to make improvements and fix any minor repairs in your home instead of calling your landlord every time there are minor repairs.

Fourth, we give you the freedom (aside from fixing your home) of adding lipstick renovation to your home. Being able to do so will help you adapt to the life of a homeowner and you will also add value to your home. Our homes are also pet-friendly thus, making them convenient for pet lovers.

Fifth, we give renters the freedom to choose homes of their choice based on their qualifications. When the rent to own term ends, you will have the exclusive right to that property and you will have the option of purchasing it at the predetermined price. Our fixed rent policy ensures that renters will no longer worry about rent increases every year, something that helps them plan their budget efficiently and increase their savings for a down payment.

Final thoughts

As a renter, when you enroll in our homeowner in-training program, we will completely change your mindset about homeownership. We understand and know that it takes a lot of hard work, discipline, and dedication when you get into homeownership. That’s why we have dedicated ourselves to nurture renters with all the necessary skills to help them become proud homeowners who are financially and mentally prepared. The question we always ask is, where are you really right now?” Are you just “hoping” that one day it’ll fall under your lap or are you really willing and ready now to take the next step to get into homeownership?

If you’ve been a renter in Canada and you’ve been aspiring to transition to get a home for yourself and family, get in touch with us today for a free consultation on our homeowner in-training program.

Why Are People Getting Into Rent To Own Nowadays?

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Families across Ontario and Canada are getting into homeownership through rent to own programs

Owning your dream home is one of the biggest dreams for many families in here in Canada. However, with the continuous rise of real estate prices across all provinces, it’s becoming harder and harder for people to save for a down payment and get into homeownership. That’s why the Liberal Party is also promising a $1 billion in loans and grants to improve and develop rent to own projects with private, non-profit, and co-op partners for aspiring homeowners. This will open up opportunities to help renters actualize their homeownership dream while renting.

The rent-to-own program aims to help financially struggling renters who can’t meet the threshold of qualifying for mortgage loans. By committing to a rent to own program, renters can hold onto their dream homes by leveraging on their monthly payments.

By delaying the home buying process, the renters get a chance to rebuild their credit score and align their finances so that they can save up the required down payment at the end of the rent-to-own agreement period.

Benefits of a rent-to-own program

  1. Renters are given exclusive rights to purchase their rental homes at a set price that was agreed upon initially after the end of the rent-to-own program.
  2. The saved premium makes it easy for renters under the rent-to-own program to raise enough down payment to enable them to qualify for a mortgage after the end of the term. This is one of the main gaps that rent-to-own program aims to achieve and that’s why it’s a customized financial solution for renters who are struggling with poor credit scores, or insufficient down payment.
  3. Renters are allowed to live in their home before they can own it. Such arrangements help renters to get a sense of homeownership, especially if you’ve been renting your whole life. The toilet is clogged, do you call your landlord, or do you fix it? Remember, the place you’re living in is your home already after the term. You get to understand what it means to have a home and adopt responsibility as a “homeowner”.
  4. When families enter a rent-to-own program, they’re able to enjoy a fixed rent amount over the lease period thus, avoiding sudden hikes in rental prices. Where there is a fixed and predictable rental price, renters can effectively plan their monthly budget and set aside more cash for their savings account.
  5. Getting a pet-friendly home is mostly a privilege enjoyed by those who own homes. Through our rent-to-own program, you can bring your furry family member and enjoy the home with them – in a bigger home too.
  6. The rent-to-own program has no moving-in delays. Once you agree to the terms and sign the agreement, you are given the keys to move into your new home on the agreed-upon possession date.
  7. As a renter, you get the opportunity to pick the home of your choice based on your qualification. We have different types of homes in different neighborhoods and cities in Ontario, Canada that a renter can choose from once they enter the program.
  8. Rent-to-own programs also give renters a unique opportunity to build value to the home by making some home improvements and renovations. Some of the common home areas where renters can often add value or renovate are; kitchen fittings, bathrooms, and backyard improvements.

With an effective and well-regulated rent-to-own program, homeownership ladder will be within reach for many renters who have issues with credit or insufficient down payment. If you have always wanted to transition from a renter to a homeowner, we have good news for you. Kindly sign up for our rent-to-own pre-approval form to get you started with a curated game plan and steps to homeownership.