Shannon Bashir

It’s hard to believe Christmas is only 16 sleeps away! It is so nice to see people getting into the spirit of the holidays, decorating their homes and making their places festive.

I’ve had the pleasure of sharing some joy with families all over the lower mainland, handing out gingerbread houses and holiday pies and the responses have been very touching.

The gingerbread houses were a big hit, it brought families together to create masterpieces, taught patience and showed the potential of youngsters who may become the next Planner or Project Manager . I’ve received numerous photo submissions for the gingerbread contest and I must say the submissions have been very creative and a great deal of whimsy. Winners of the contest will be announced next week.

We held our Customer Appreciation day on the weekend and it was a huge success. We gave away over 1000 holiday pies while maintaining social distancing. The weather cooperated and it was great to see everyone. I received reports that the pies are definitely delicious!

I’d like to wish everyone a very merry holiday season, if you feel overwhelmed and need someone to speak to, remember I’m only a phone call away and a great listener.

Stay Safe and Have Fun!

There are two types of relationships that you may have with a real estate professional that involves buying, selling or leasing a property.

If you’re shopping for a new home, or ready to sell your current home, there comes a time where you will need to reach out to a real estate professional for help and guidance. But, before disclosing confidential information, you should decide what type of business relationship you want to have.

Prior to providing services, a real estate professional must present you with the “Disclosure of Representation in Trading Services” form. This Disclosure of Representation was put into place by the Real Estate Council of BC in order to regulate real estate professionals and to protect you the consumer. On this form, you will have the opportunity to choose whether you will be represented as a client or a non-client

As a Client

If you choose to be a “client” of a real estate professional, they will work on your behalf and will have special legal duties to you:

1)    Loyalty

Your real estate professional will act in your best interest at all times

2)    Full Disclosure

Your real estate professional must disclose everything they know that may influence your decision in a transaction

3)    Avoid Conflicts of Interest

They must avoid situations that affect your real estate professional’s duty to act in your best interest

4)    Confidentiality

Your private information cannot be revealed by your real estate professional without permission (even after your relationship ends). This includes:

• reasons for buying, selling or leasing
• minimum/maximum price
• any preferred terms and conditions you may want included in a contract

As a Non-Client

A real estate professional may only provide limited services to a Non-Client. If you chose a Non-Client relationship, the real estate professional will not be obligated to you for any of the special legal duties noted below:

1)    Loyalty

The real estate professional may be representing a client who has competing interests in a transaction, that real estate professional owes their loyalty to their client, not to you

2)    No Duty of Full Disclosure

A real estate professional does not have a duty to provide you with all the relevant information

3)    No Duty to Avoid Conflicts

A real estate professional is not acting in your interests

4)    No Confidentiality

A real estate professional must share any information you tell them with their clients in a transaction

Whether you chose to be a Client or Non-Client, when a real estate professional works with you in a real estate transaction, they still have the responsibility to act honestly and with reasonable care and skill but may only provide limited services as a Non-Client

Please Note: The Disclosure of Representation in Trading Services is NOT a contract, it is a document designed to protect you, the consumer.

You had a little extra time on your hands and looked online to see what’s new in the real estate market. Many of us like to window shop online and it’s certainly a great way to peruse what’s out there whether we are actively looking or just curious. When checking everything out you may come across an interesting property on a real estate website or perhaps Facebook that has piqued your interest. But on some of these sites, you cannot retrieve all the information you want until you sign up.

Facebook is a common tool used by many realtors. It helps us connect with prospective clients and helps to connect your property for sale with prospective buyers, but it has its drawbacks because we do not have the opportunity to ask you how we may help or how we can refine your search.

Another drawback is if you click on many Facebook ads and sign up to each one, you are now potentially connecting to many different realtors and possibly receive more calls and emails than you would like. Most of us do not want to drive you crazy with phone calls and emails. As your advocate; we really do want to help you make informed decisions without overwhelming you.

This is not an attack on Facebook. It can be a powerful tool to sell your home and an excellent opportunity to increase exposure of your listing to a larger group of people in a specified area.

My suggestion; find a good realtor you are comfortable with and talk to them. A short conversation to discuss your needs/wants is invaluable. Once you are done, your realtor can generate a customized search where refined listing results go directly to you on a schedule that works for you. The results can be re-customized at any time if your needs change.

If you prefer to look at properties on your own, without being emailed and phoned every time you click on an ad, I invite you to my website. The benefit of an account is the ability to create and share multiple searches and favourites using varied criteria, plus, access to sold history. You can look at your leisure and when you’re ready for the next step, I’m only a phone call away.

Feel free to contact me if you have any questions.

How your Credit Score is Calculated

How your Credit Score can be improved

Part 3

Now that you understand how your credit score is calculated, and ways to improve it, you want to ensure your credit stays intact.

It is important to review your credit report once per year, consider this general housekeeping.

Start by requesting your credit report and review it for inaccuracies. If you find any errors dispute them, and have it rectified.

Checking your credit report will not affect your credit score as it is considered a "soft hit". You may find a credit card listed as delinquent, when in fact you paid off the balance and closed the account. You may even find a bill listed that isn’t yours.

Both Equifax and TransUnion will allow you one free credit check per year (by mail). If you do it strategically (alternating every six months) you will be able to detect issues sooner.

Equifax Credit File Disclosure (credit report)

You can order your report two ways;

1) Order by Phone 1.800.465.7166 (may be a cost).

2) Request the report using their form (free).

Two pieces of ID are required and your report will be mailed to you.

https://assets.equifax.com/legacy/ecm/canada/EFXCreditReportRequestForm.pdf

TransUnion Consumer Disclosure (credit report)

You can order your report two ways;

1) Order by Phone 1.800.663.9980 (may be a cost).

2) Request the report using their form (free).

Two pieces of ID are required and your report will be mailed to you.

https://www.transunion.ca/resources/transunion-ca/doc/personal/Consumer_Disclosure_Request_Form_en.pdf

If you need help re-establishing your credit, contact Credit Canada for a free and confidential session and move forward with your financial goals. 1-800-267-2272 https://www.creditcanada.com/contact-us

Last week we covered How your Credit Score is Calculated, this week we will cover How your credit score can be improved.

There are several ways you can improve your credit score.

The number one way to increase your score is to always pay your bills on time. But if you can’t pay the full amount, make sure you are always paying the minimum amount due. Making a full payment a few days late is actually worse and deemed a missed payment.

Lower your credit usage so your credit utilization is decreased. Call your credit card companies and request a higher limit. As long as you don’t use the extra credit card room (don’t over spend). Increasing your credit utilization will raise your score.

If you cannot obtain a regular credit card, you may want to apply for a Secured Credit Card, (this is different than a prepaid credit card). Basically, you send the bank money that is kept as collateral and returned when you pay off your card and close the account. You receive a credit limit based on your collateral (e.g. if your credit card has a limit of $2,000, you will be required to put $2,000 into a designated account). You use the card like a regular credit card and your payment history is reported to the credit bureau as you use it. It’s a good idea to stay below your credit limit and make regular payments to help repair your credit rating.  

You can also raise your score by becoming an authorized user on someone else’s account. If you know someone with a really good score they can add you to their credit card as an authorized user which will impact you positively, they don’t even have to give you a credit card to use.

Close extra cards. Many of us may sign up for bonus miles with various cards, but having more cards can hinder your credit limit, you really only need 1 or 2 credit cards.

If you write cheques, be sure that your account has enough funds. Cheques that are returned due to insufficient funds may be reported to the credit bureau.

If you are having a hard time financially, contact the credit bureau (Equifax or TransUnion) and ask for a note to be put on your file explaining your financial difficulties e.g. Job loss, sickness or debt incurred by your partner or spouse.

No matter how bad your credit is, you can improve your score by 100 – 200 points if you start to make changes now.

Next week find out how to obtain a copy of your Credit Report

When you apply for a vehicle loan or mortgage, your lender will look at your credit score to determine your risk compared to other consumers. If you know you have an excellent credit score, consider taking advantage of your excellent score, you may be able to negotiate a better interest rate.

Your credit score is a calculation from your credit report which is based on; payment history, credit utilization, length of credit history, credit diversity and number of hard inquiries. Credit Scores ranges from 300 – 900, with 300 being poor and 900 excellent.

Let’s take a look at each factor that makes up your credit report:

Payment History

Extremely important and accounts for approximately 35% of your score. Any missed or late payments may drop your score. If you are having trouble paying your bill, contact your lender right away. Even if you have to dispute a charge, it is wise to pay the bill now and resolve it later to keep your credit rating up.

Credit Utilization

Credit utilization is approximately 30% of your credit score. This is the average credit you use each month compared to the amount of credit you have available. 

E.g. A credit card with a $5K limit and average borrowing amount of $1K is 20% usage. Add up all of your available credit (credit card limits, line of credit) and try to use less than 35% of your available credit each month. Maxing out your credit cards will bring down your score. The best approach is to ask for a credit increase (but don’t increase your spending).

Credit History

Your credit history makes up about 15% of your credit score. Consider keeping that old credit card or line of credit even if you don’t use it often. If you’ve thought about closing your old line of credit due to lack of use, think again, keeping it will help to retain your credit history and also your credit utilization (the amount of money you have at your disposal versus what you are using – the higher your disposal the better).

Credit Diversity

This accounts for approximately 10% of your credit score. It’s always best to have several types of credit such as a line of credit, car loan, and credit card. This variety may improve your credit score as it indicates to the credit bureau that you are a good borrower and can handle several payments.

Hard Inquiries

Hard inquires make up about 10% of your credit score. When a lender or bank checks your credit report it is considered a hard inquiry. This may occur when you apply for any new credit.  If you have a large number of hard inquiries (hits) to your report, creditors will wonder why you are applying to so many places at once, so it is best to limit the number of times you apply for credit. If you are shopping around for a new vehicle or mortgage, try to do all your inquires within a short time-span such as two weeks so it’s deemed as one hit to your credit score.  If, however you order your own credit check, it is considered a soft hit and will not affect your credit rating.

Credit Scores

800 - 900 Excellent

720 - 799 Very Good

650 - 719 Good

600 - 649 Fair

300 - 599 Poor

Join me Next Week when I discuss how you can improve your Credit Rating

In a nutshell, if you are a homeowner and over the age of 55, you can access up to 55% of your homes equity and receive the funds in two basic scenarios; a one-time lump sum payment or monthly payouts.

Many people are using their reverse mortgage to enter into early retirement, pay off debt, increase their investment portfolio or help loved ones enter the housing market. If you have children, you may have a plan set out for what they will inherit. How rewarding would it be, to help them now, rather than later.

As with standard mortgages, there are some fees involved with obtaining a reverse mortgage. These include; an appraisal of your property, legal advice, closing costs and administration fees. And most importantly, a reverse mortgage also allows you to maintain ownership and title and control of your home, but keep in mind, the lender would be listed on title as a first mortgage.

The mortgage amount is only payable when you sell or move, and is based on the original principle balance plus accrued interest. Historically, your equity in your home will continue to grow, and is usually higher than the interest accrual.

Contact your financial institution to see if a reverse mortgage may be the right decision for you or your parents.