Pramod, somewhere in your earlier posts you mentioned that one can ask for their credit history report at Equifax.CA

Here above, you have mentioned that if the credit history is being asked for again and again may effect the credit history.

If I want to keep a track of my credit history (due to identity theft business going around), will it be noted as call for credit history and have a effect?

it only shows up on your credit report if a lender or lender's agent requests your credit file, not when you ask for it yourself...

and having multiple "hits" DOES affect fico score... its not "may"... having multiple enquiries on the credit report tells people lots of lenders have been looking at it, which leads to the obvious conclusion that you have been applying for credit left right and center, which automatically makes you a risk to default...

you personally can get your own report as many times as you want (the online service you have to pay for, you can also get it for free if you send them a letter asking for it, and they send it back by mail)... all such inquiries by you on your own report dont show up anywhere lenders can see... but they do see which other lenders have been looking at it... which is why everytime a lender looks at your credit report they need explicit permission from you to do so...

Thanks Bighead for explaining it. You really have a 'big wise head' on your shoulders.

Desi # 1

If you read the same post again, I have clearly mentioned that if you ask your credit report, it would not affect your credit score at all. Moreover, it is your right to ask for it and you get it free by mail. However, if you want to know your credit score also known as 'FICO SCORE' you have to pay for it but it still does not show any where on your report and does not affect your score.

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Pramod Chopra
Senior Mortgage Consultant
Mortgage Alliance Company of Canada

Quote from Equifax website:

"Avoid applying for credit unless you have a genuine need for a new account. Too many inquiries in a short period of time can sometimes be interpreted as a sign that you are opening numerous credit accounts due to financial difficulties, or overextending yourself by taking on more debt than you can actually repay. A flurry of inquiries will prompt most lenders to ask you why. However, most scoring formulas will not penalize you if, for example, you are shopping for the best mortgage rate or the best car loan."

the link is: https://www.econsumer.equifax.ca/ca/main?forward=/view/common/template.jsp&body=/view/education/credit_ed.jsp?show=score_basics_llaanngg.jsp

Read particularly the last sentence - "However, most scoring formulas will not penalize you if, for example, you are shopping for the best mortgage rate or the best car loan."

so how come the credit score is affected if one is shopping around for best mortgage rates?

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Sunil Sharma, P.Eng.

I agree with Sushil. I have done this excercise so many times and to be very frank, I never had any problem of not getting better rate because of credit scoring.
I think what Pramod says is only applicable if you are on borderline otherwise this is not important.
Also, my experience with mortgage agents are very bad. If you are paying more than 25% down payment or having solid proof income, they don't show their interest because they immediately understand he or she can negotiate the rate with any bank directly.
Agents only show their interest if you are
=> Down payment is less than 25%
=> Self employed showing no income (Govt's Jamai)
Sorry for being blunt in my email but some one misuse the system and we all end up paying for it.

By the way, I really enjoy the posting and has learnt a lot. So keep up the good job

Quote:

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Orginally posted by nishi200

I agree with Sushil. I have done this excercise so many times and to be very frank, I never had any problem of not getting better rate because of credit scoring.
I think what Pramod says is only applicable if you are on borderline otherwise this is not important.
Also, my experience with mortgage agents are very bad. If you are paying more than 25% down payment or having solid proof income, they don't show their interest because they immediately understand he or she can negotiate the rate with any bank directly.
Agents only show their interest if you are
=> Down payment is less than 25%
=> Self employed showing no income (Govt's Jamai)
Sorry for being blunt in my email but some one misuse the system and we all end up paying for it.

By the way, I really enjoy the posting and has learnt a lot. So keep up the good job

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Quote:

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Val,

You are right. If the savings are in CAD and you have the required down payment, and are here for good then you should go for the house/condo depending on your lifestyle and family needs. It is always good to put 25% down payments so that you can save on the CMHC mortgage insurance costs which sometimes can be substantial depending on the percentage of down payment and the amount of mortgage you are looking for.

The CMHC/GE mortgage insurace premiums are as follows:

5% down payment.....................3.25% of mortgage amount
10% down payment......................2.00% of mortgage amount
15% down payment......................1.75 % of mortgage amount
25% down payment........................nil

Moreover, you have to pay 8% tax on the premium amount plus $165 CMHC application fee.

Now suppose you buy a house for $200,000 then by putting 5% down payment you would have to pay a total of $6,175 in insurace premium, $494 in 8% PST on premiums and $165 CMHC application fee.

Similarly, if you put $20,000 as down payment then insurance premium is reduced to $3600 only and the tax is reduced to $ 288 and the application fee remains the same.

By putting 25% down payment instead of 5% down payment you would save a total of $6,834 and hundreds of dollars in interest over the time of your mortgage. Please note that these calculations are based on a purchase price of $200,000 and would differ either way depending on the cost price of the condo or house you plan to buy.

Now you can find out how much loss you would have in USD to CAD conversion and whether that would be significant in comparison to these costs if you decide to put 25% down payment and convert your USD savings int CAD.

Any questions, you can either PM me or email me at

Good Luck
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And in the same thread I advised another member NOT TO GO for housing as this was not in his best interest. Plese see a pasting from the same post.

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Quote:
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Orginally posted by Zeas

Hi

We are planning to move to Canada shortly and by God's grace we have around 200K. Is it advisable to buy a house or condo for about 150K and pay full cash down or go for mortgage. My job prospects there may not be bright, minimum is what am counting initially, having this in mind your input will be much appreciated.

Thank you in advance.

Zeas

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Zeas,

The advice of Chandresh, Pratickm and DTC makes sense in your case for NOT TO GO for house initially but rent and explore business ventures and or suitable job and keep your savings in safe investments. Moreover, you would not get a condo in $150 k in a resonable location and may have to go in for around $200 K which means you would have to put around $70 K as down payment as you would not have an established credit in Canada immediately on your arrival. Moreover, the banks would like to see you have a permanent job of atleast 9-12 months duration to allow you to buy house by putting 5 or 10 percent down payment.

Should you have any questions, you can either PM me or email me at and I shall answer all your questions.

Good Luck.
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I sincerely hope that the members should explore the site for any related questions and answers before pointing fingers on any profession.