22 Sep

Is inflating income, lying on credit applications OK?

General

Posted by: Drummond Team

Ten percent of Canadians surveyed say it’s okay to inflate your income when applying for a mortgage, according to a new Equifax survey.
 
And 9% say they have lied on credit card or mortgage applications.
 
The numbers came as a shock to Equifax officials, given that the July survey of 1,500 Canadians was really aimed at gauging their concerns about protection of personal data.
 
“We hadn’t asked the question before,” says Tim Ashby, Vice President of personal solutions for Equifax Canada. “It’s a bad strategy,” he stressed, noting that lying on any credit applications is a form of fraud. “Obviously it’s not sustainable. It means that people are concerned about their ability to get a mortgage. We definitely want to counsel Canadians to work within their means and approach their debts with financial responsibility.”
 
The survey also disclosed that only 23% of Canadians know their credit score, and just 26% knew their credit rating at the time they applied for a mortgage. That’s despite the fact a good credit score can be a major negotiating tool in getting lower interest rate mortgages from financial institutions.
 
Click here for the full article in The Star.

Ten per cent of Canadians surveyed say it’s okay to inflate your income when applying for a mortage, according to a new survey by credit reporting agency Equifax.
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22 Sep

Breaking Down Debt: How 4 Different Loans Affect Your Mortgage-Worthiness

General

Posted by: Drummond Team

Want to get a new mortgage? Then, your credit score is a really big deal — it can make or break your mortgage payments, and ultimately determine whether or not you get the house you want.

But before we talk about credit scores, let’s talk about the debt that affects them. There are two types of debt: secured and unsecured. When you borrow money to buy a house, the bank can take back the house to recoup their money if you don’t pay the debt. That means the debt is secured — it’s being balanced against something that you want to keep, and gives the bank some measure of security that they’re going to be able to recover the money they’ve loaned you.

Click here to look at the impact of four key consumer loans, a mix of secured and unsecured debt, on your credit score – and, ultimately, your mortgage worthiness, courtesy of Forbes.

 

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