Credit Score is the method used by financial institutes to measure your financial health at a specific point in time. It indicates the risk you represent for lenders, compared with other consumers. In Canada, credit history is recorded in files maintained by at least one of Canada’s three major credit-reporting bureaus (Equifax, TransUnion and Northern Credit Bureaus Inc.). These files are called credit reports – a “snapshot” of your credit history.

There is a rising tide of spam offering “credit repair” for a fee. Beware of these companies; their ability to change the information that appears in your credit file is no different than anyone else’s! Only your creditors are able to alter this information. Therefore you do not need to pay a third party to obtain, review or make changes to your credit report. You have the right to access your information and make changes to your file if there is an inaccuracy.

What should you do if you have bad credit?

Before you pay someone to advise you how to fix your credit, check out these simple steps to help you build a better credit rating:

1. Request a copy of your credit report from the three credit-reporting agencies at least once a year to verify that your personal information is up to date and your financial information is correct, and to ensure that you have not been the victim of identity fraud. Because your credit information can be kept by more than one credit-reporting agency, and because those agencies do not necessarily share information, it’s important to check all three credit reports carefully. You can get a copy of your credit history from the above agencies websites for a small fee.

2. Check your credit history thoroughly. Look for errors and make sure the information in the report is correct and up to date. If you believe that the information in your credit report is incorrect, contact the financial institution that reported the information to see if an error was made. You could also file a dispute with the three credit-reporting bureaus explaining your situation.

3. Analyse your finances. Make a list of everything you owe, the interest rate each debt carries, and the minimum payment due each month. Then, prioritize your debt: mortgage, real estate taxes, credit cards and bills should be paid in that order.

4. Negotiate with your creditors for a lower interest rate.

5. Pay your bills on time. Although the payment of your utility bills, such as phone, cable and electricity, is not recorded in your credit report, some companies may report late payments to the credit-reporting agencies, which could affect your score. Try to pay your bills in full by the due date. If you aren’t able to do this, pay at least the required minimum amount shown on your monthly credit card statement.

6. Try to pay your debts as quickly as possible. The faster you pay your loans the less interest you will pay in the long run which means more available money to pay other bills.

7. Don’t go over the credit limit on your credit card. Try to keep your balance below 25% of the limit. The higher your balance, the more impact it has on your credit score. You’re better off spreading out your debt between three or four different cards than having it all piled on one card.

8. Reduce the number of credit applications you make. If too many potential lenders ask about your credit in a short period of time, this may have a negative effect on your score. However, your score does not change when you ask for information about your own credit report.

9. Make sure you have a credit history. You may have a low score because you do not have a record of owing money and paying it back. You can build a credit history by using a credit card.

10. Don’t share credit (except with a spouse).  Think carefully before you agree to co-sign a loan. It is easy to wind up in a situation where that friend or relative stops paying his or her bills (for whatever reason) and your credit will take a big hit. Once you’re a co-signer for a loan, you’re legally obligated to make those payments, whether or not you can afford them.

Show the credit system that you are a responsible money manager. A bad mark on your credit report will remain on your credit record for a maximum of 7 years. Pay your bills on time. Don’t bounce any cheques. Don’t overdraw your account at the bank (even if you have overdraft protection). You should only borrow money because you want to, not because you have to.  In this way you will repair your credit and avoid a bad credit report in the future.

source: Canada Realty News

In spite of a sluggish economy, the resale market has remained active since the beginning of 2008. For the first nine months of the year, existing home sales in the Montréal CMA decreased by only 2 per cent year-over-year. According to the latest MLS® data from the Greater Montréal Real Estate Board (GMREB), 8,463 properties changed hands in the Montréal CMA, up 1 per cent from the same quarter a year ago. “The introduction of new rules relating to the maximum amortization period and the minimum down payment required for insured mortgages may have prompted a number of households to purchase earlier than planned”, said Stéphane Duguay, Market Analyst at Canada Mortgage and Housing Corporation.

Property listings, for their part, increased for the second quarter in a row to 21,425 units, up 12 per cent compared to the same period a year ago. The average selling price of homes grew at a similar rate as the pace observed since the beginning of the year. In fact, the average increase in prices was 5 per cent this past quarter, versus 4 per cent in the second quarter and 6 per cent in the first quarter. “Despite the rise in listings observed over the last two quarters, the high demand is such that the resale market still remains favourable to sellers, for all three property types,” said Michel Beauséjour, FCA, Chief Executive Officer of the GMREB.

In the third quarter, 5,098 single-family houses were sold, for a decrease of 2 per cent year-over-year. The Island of Montréal sector accounted for most of the decline in the single-family segment, with sales falling by 11 per cent. In Vaudreuil-Soulanges, sales dropped by 9 per cent in the third quarter, but the impact of this decrease on the whole market was not very significant, as 367 units were sold in this sector, compared to 1,011 on the Island of Montréal. All other sectors in the Montréal CMA registered small increases in sales, varying between 1 per cent and 3 per cent. Listings of single-family homes rose by 17 per cent in the third quarter, compared to the same period in 2007. This rise followed a 9-per-cent increase posted the previous quarter. The average price of single-family homes in the Montréal CMA was $273,872, up 6 per cent from the same period a year ago. This price increase was, however, greater than the 4-per-cent rise posted in the second quarter. Therefore, even though sales fell and listings rose, the single-family market segment remained tight in the Montréal CMA.

The condominium segment remained strong in the third quarter of 2008. From July 1 to September 30, 2,417 condominiums were sold, for an increase of 8 per cent compared to the third quarter of 2007. This result was also in line with the rate of growth recorded year-to-date. The greater affordability of condominiums has allowed this housing type to post a relatively good performance. Thus, from January to September, while single-family home sales were down 6 per cent, condominium sales were up 7 per cent in the CMA. In the last quarter, listings rose much less significantly in the case of condominiums than for the other housing types. Total condominium listings increased by 3 per cent over the same period last year. The average selling price of condominiums in the CMA rose 3 per cent this past quarter, a pace similar to the growth observed since the beginning of the year but slower than the rates recorded for the other housing types. This difference was partly due to the increased share of condominiums sold in the less expensive sectors.

In the third quarter of 2008, there were 948 plex sales, or 2 per cent more than during the same period in 2007. The supply of plexes, for its part, rose by 15 per cent over the third quarter of 2007. This increase was less significant, though, than the 20-per-cent hike registered in the previous quarter. In the third quarter of 2008, 2,766 plexes were listed in the GMREB MLS® system. It should be noted that, with listings up by 11 per cent, the South Shore saw this segment shift from a seller’s market to a balanced market. It would seem that the appreciable rise in listings noted since the beginning of the year has slowly been reflected in the prices. In the overall CMA, plex selling prices registered an increase of 5 per cent in the last quarter, a slightly smaller gain than the hike of 6 per cent recorded for the first six months of the year.

source: GMREB

When you rent a home or apartment in Canada, the landlord will usually ask you to sign a written rental agreement. This legal contract is also often called a “lease.”

Under the laws of each province and territory, tenants and landlords have certain rights and responsibilities whether they have a written agreement or not. Nevertheless, a written lease agreement can help spell out all the terms you and your landlord want to have covered and agreed to. You may also wish to seek legal advice before accepting the terms.

To help you know what to expect, Canada Mortgage and Housing Corporation (CMHC) offers the following list of terms that can be found in most rental agreements:

The names of the landlord and tenant(s). The address of the home or apartment you are renting. The monthly rent you agreed to pay, with or without utilities, parking, cable television or other services. The date when the rent is due (for example, on the first day of each month). The amount and terms of any rent, security or damage deposits you agreed to pay. A list of which repairs or upkeep will be your responsibility. The term of rental period (most rental agreements are usually for one year, but some may be month-to-month or week-to-week). The conditions for ending or canceling your lease, including financial implications and the amount of advance notice you must give the landlord if you decide to move out (for example, 60 days notice). The rules or restrictions for subletting the property. The amount the landlord is allowed to increase the rent in the future. Any other specific restrictions (such as whether or not you can smoke in the home and whether you can have boarders, pets or a waterbed, etc.) Details on when and how the landlord can enter your home or apartment. The procedure for making changes to the contract. A method for resolving any disputes or disagreements (for example, disputes about late rent payments, damage to the property or eviction). Contact information for both you and your landlord in case of an emergency (usually including a phone number, fax and email).

source: CMHC

MAIN CHANGES IN THE LAW

an exclusive representative when acting on behalf of their financial institution in the context of a brokerage transaction relating to a mortgage; a member of a professional order or person governed by the AMF (Autorité des marchés financiers) who only gives a client the name and contact information of a person offering mortgage loans; a superintendent or manager of a property or co-ownership property when leasing; a superintendent or manager giving the name of a buyer to a co-owner; an employee or manager working for a subsidiary of the owner of the immovable (90% controlled); the spouse, child, father, mother, brother, sister of an owner who engages in a transaction described in section 1; the sole shareholder of a company who engages in a transaction described in section 1.

The ACAIQ becomes the OACIQ (Organisme d’autoréglementation du courtage immobilier du Québec);

Natural persons who provide real estate or mortgage brokerage services to consumers will be designated as real estate brokers or mortgage brokers;

Brokerage firms on whose behalf these brokers will act will be called real estate agencies or mortgage agencies;

Broker and agency licenses will be issued by the OACIQ;

Persons (brokers) who provide brokerage services to consumers will have to hold professional liability insurance, same as agencies;

Brokers will be solidarily liable with the agency they represent.

On September 30, 2008, the Canadian Radio-television and Telecommunications Commission (CRTC) will be introducing the National Do Not Call List (DNCL), a service allowing Canadians to reduce the number of unsolicited telemarketing calls they receive. As of that date, consumers will be able to register their telephone numbers (land, cell or fax) free of charge on the DNCL in order to avoid receiving unwanted solicitation calls.

The implementation of this new national register results in major changes to the Unsolicited Telecommunications Rules, and therefore to canvassing practices.

Registered charities Political parties Nomination contestants, leadership candidates or political candidates Telemarketers collecting data for an opinion survey or soliciting a subscription for a major newspaper Companies who have an existing commercial relationship with a registrant Telemarketers to business subscribers

They must register with the DNCL administrator and pay the subscription fees; They must have an up-to-date call list that excludes numbers registered on the DNCL;

They must maintain an up-to-date list of consumers who have asked directly to be excluded from their lists without going through the DNCL; They must keep the information used in the course of their activities, in case of complaint; They must abstain from soliciting any person whose number is registered on the DNCL or who has directly requested to be taken off their list.

www.crtc.gc.ca/eng/dncl.htm

source: ACAIQ

Few appale fans would not agree that it is time for a major update and redeisign of the Macbook and Macbook Pro line. Various rumours have surfaced that past few weeks about a special event that will be held on Tuesday, October 14th 2008 where the new, all-aluminum Macbook will be presented.

Is it really time? We will see in less than a week.

The increase in sales in the Montréal Metropolitan Area is the highest it’s been in the past 11 months, growing by 13 per cent in September 2008 compared to September 2007, according to the Greater Montréal Real Estate Board’s MLS® statistics. With 3,060 sales this past month, year-to-date overall sales are down by only 2 per cent.

“We’re fortunate in Canada not to be facing the same type of real estate situation as our neighbours to the south,” said Michel Beauséjour, FCA, GMREB’s Chief Executive Officer. “In Canada, our real estate economic situation is much healthier due to the more stringent regulations governing the purchase of real estate, including that of careful credit analysis of potential buyers.”

Sales of condominiums in the Montréal Metropolitan Area, which were already performing well, increased by 25 per cent in September 2008 compared to September 2007, reflecting sustained activity in suburban areas (+41 per cent on the North Shore and +27 per cent on the South Shore). Sales of plexes also increased substantially, growing by 16 per cent. And, finally, sales of single-family homes rose by 7 per cent in September, the first increase since the start of the year.

All major geographic regions recorded significant growth last month, with the exception of Vaudreuil-Soulanges (-2 per cent). The North Shore and the Island of Montréal performed exceptionally well with sales increasing by 16 per cent and 14 per cent, respectively. Laval and the South Shore, also showing strong growth levels, recorded an 11 per cent and 12 per cent increase in their number of transactions.

Isn’t the Blackberry Bold huge and made by cheap plastic material compared to the NOKIA E71?

Why would someone pay more for a device like that since you can everything you need on the NOKIA.

The “flip” is a scheme which real estate agents must be aware of and avoid. This manoeuvre has been a source of great concern to the ACAIQ in recent years. It consists in the quick and successive sale of the same property with a substantial and unjustified price hike. Both transactions often take place the same day, a few minutes apart.

The instigators of the flip, often part of a structured organization, first simulate an interest for a property by presenting a promise to purchase to the seller. However, they have no intention of buying the property for themselves. At the same time, a second promise to purchase at a much higher price is drafted between the “flipper” and a buyer. This buyer’s financing is often secured by the organization and the file usually includes false documents attesting to the buyer’s financial situation. With a notary’s participation, the organization first closes the sale with this buyer. Then, with the money from this sale in hand, the final details of the initial promise to purchase presented to the seller are settled and the transaction is concluded. Thus within a few minutes the organization makes a profit, corresponding to the difference between the two transactions.

This scheme contravenes several of the rules of ethics that govern real estate agents, including those related to integrity, fair treatment of the parties to a transaction, and acting with objectivity in the course of a transaction. The Discipline Committee takes very serious view of real estate agents who participate in such transactions, which have disastrous consequences. Among other problems, they can cause a major prejudice to several parties, namely:

damage to the buyer’s credit and financial reputation or even bankruptcy due to having paid too much for the property compared to their means and the market; losses for financial institutions that are conned into lending against an immovable that is worth less than the guaranteed loan; undue upward pressure on real estate prices created by the artificially inflated prices of flipped properties; selling price of the flipped property too low in the first of the two successive sales, causing a financial loss to the first seller.

A buyer contacts an organization offering financing solutions that are attractive to him; Detailed description sheets of properties, selected because they lend themselves well to a flip, are submitted to the buyer; When a buyer is interested in a property, a collaborating real estate agent, in cahoots with the organization, takes the buyer to see the property without explaining the successive selling scheme that the organization intends to do; If the buyer is interested in buying the property, the real estate agent prepares a promise to purchase on behalf of the organization with which he is in league, and the organization buys the property through a numbered company or a nominee holder. Another promise is drafted simultaneously between the buyer and the organization at a price that is much higher than what the organization is offered to the seller; The initial seller and the second buyer often don’t know the identity of the other party; The notarized acts are signed on the same day, so that the organization receives in payment the financing obtained by the subsequent buyer; The organization thus finances the first sale using the loan obtained by the subsequent buyer.

In coming years, this scheme, now common, could be altered by the organizations involved in them and become more sophisticated. However, regardless of variations in the mechanism, the result will remain more or less the same and will still be recognizable as long as agents keep in mind the main characteristics of a flip, with is the rapid and almost simultaneous purchase and resale, with the pocketing of a profit unbeknownst to a buyer and to the detriment of a financial institution.

When a real estate broker or agent takes part in such transactions, our profession’s credibility with financial institutions and the public suffers. Such involvement is considered a serious offence that can lead to a suspension of the broker or agent’s certificate for several months, sometimes even years.

Real estate brokers and agents should have no part in these transactions. When faced with a situation that looks like what is described above, open your eyes and don’t hesitate to denounce it as an illegal practice.

source: ACAIQ

The seasonally adjusted annual rate¹ of housing starts was 213,900 units in April, down from 243,000 units in March, according to Canada Mortgage and Housing Corporation (CMHC).

“Housing starts in April moderated from the high levels posted in February and March. Most of the decrease reflected a drop in multiple starts, which in March and February had reached their second and third highest levels since March of 1978, respectively,” said Bob Dugan, Chief Economist at CMHC’s Market Analysis Centre. “Despite the decline, starts remained robust at over 200,000 units.”

In April the seasonally adjusted annual rate of urban starts edged down by 16.3 per cent to 185,400 units compared to March. Urban multiples were also down to 113,900 in April from 141,000 in March. In addition, singles decreased 11.3 per cent to 71,500 units.

The seasonally adjusted annual rate of urban starts went down in all regions of Canada, except British Columbia, which saw an increase of 17.1 per cent to 34,900 in April. Urban starts decreased  to 7,500 units in Atlantic Canada, 37,600 units in Quebec, 73,000 units in Ontario, and  32,400 units in the Prairies. In terms of single urban starts, all regions except Quebec were down in April. Quebec registered an increase of 9.3 per cent to 12,900 units.

Rural starts were estimated at a seasonally adjusted annual rate of 28,500 units in April².

For the first four months of 2008, actual starts in rural and urban areas combined were up an estimated 3.3 per cent compared to the same period last year. Actual starts in urban areas to date have increased by an estimated 9.6 per cent over the same period in 2007. Actual urban single starts for the four months of this year were 14.9 per cent lower than they were a year earlier, while multiple starts increased by 29 per cent over the same period. 

1. All starts figures in this release, other than actual starts, are seasonally adjusted annual rates (SAAR) — that is, monthly figures adjusted to remove normal seasonal variation and multiplied by 12 to reflect annual levels.

2. Rural housing starts for the January to March period were revised down from the original estimate of 33,200 units per month to 21,400. CMHC estimates the level of rural starts for each of the three months of the quarter, at the beginning of each quarter. During the last month of the quarter, CMHC conducts the survey in rural areas and revises the estimate. The downward revision to rural starts over the January to March period reflects, in large part, the unexpected impacts of harsh winter weather experienced during the first quarter of 2008 as well as a shift in rural/urban boundaries.

As Canada’s national housing agency, CMHC draws on over 60 years of experience to help Canadians access a variety of quality, environmentally sustainable, and affordable homes — homes that will continue to create vibrant and healthy communities and cities across the country.

source: CHMC