Best Rent-To-Own Homes Toronto GTA – 11: Credit Score & Report – Part 1


hi good evening ladies and gentlemen
this is Manoj at 3 your host for today evening I’m a real estate agent – with
re/max hallmark and for a change today we are live on time with not very
many glitches our mortgage expert is also there we were able to test out our
Mike’s and so we may be able to start on time and with with voices and everything
and thank you for again for joining let’s get you a head start with the
agenda of the day and then I will let let me get you a high from our mortgage
expert – hello sir yes sir very fine so you are live today and we will be now
I mean I’ll start with the day agenda and then I am we are reviewing the
credit report and score today now we’ll be needing you through out the whole
session today and we will it’s an important part and it looks easy and I
don’t think so it is easy but it has lots of nuances and complexities it’s
it’s actually made I looked at the content a few times it’s it’s very
interesting one yes very very interesting and it will it is it is done
in such a way that anyone can understand it wonderful
so let me start with the day agenda and then I will get back to you okay
what is our thank you okay ladies and gentlemen again thank you for joining
and we are now going to give you some brief about what we are doing today and
where we are I’ll again as usual I’ll be starting with my
real-estate monologue and there is lots of the word recession is coming back
again and we are going to review an article from some of the experts in
there who are giving us some heads up on this particular one so they are saying
the recession is looming large and we are going to review that article that is
where our real estate monologue will start and we’ll go through what what
these economists who are very much the known figures in our market what are
they saying and what are they feeling and I will give you my real estate and
then format like how as real estate agents we’re finding the market and then
we’ll try to get some mortgage experts format also on the on a review of that
particular thing so you can get an idea from all all aspects of it next is our
home buying step 3 and as like as we are doing from our last webinar we are
reviewing a Canada Mortgage and Housing Corporation first time home buying guide
step by step and last time we were on step number three when they had pointed
us that we should be reviewing the credit report in score so at that
particular so there is a slight deviation there for from that home
buying step continuation for step two four and we are now going on
understanding your credit report and score it looks very easy
Killick we we all have a bit of an idea about what the credit reports and scores
are but you with these particular two things one was the understanding a PDF
and all those links are in the webinar live streaming and where it says show
below and you will be able to see all of those
there and then there is by the Government of Canada a financial
institution book format also has a workshop whereby it has a power
presentation and we are going to review that and you will be able to understand
a lot about the credit report and score and at each level we will be getting our
mod gauge expert to review this with us and giving his insight constantly so
that is what we will be trying to do so the mod cage expert will be there he’ll
be reviewing the credit report and score with us constantly s and when we will go
and the next step we will be doing is a workshop on understanding your credit
report and score I am Not sure we will be able to complete the workshop in
today’s session so we might take it over to the next webinar and we’ll see how
much we can cover it for today okay so let’s start with the real estate
monologue first and give me a moment here let me see if I’m on the right
pages there and I will then start and head you over to the real estate
monologue okay I am there now this is let’s go through here it has probably
yeah we are here economists one recession on the way okay so and this
was my curated topic also for the day which I emailed it to all of my
subscribers and let’s go through it will go slow and we’ll try to get as much
information as we can to highly respected economists offered different
view of the severity of the next recession and its impact on real estate
now winner we when we are on this term recession I mean I’ll
keep on briefing you about my real estate aspect of whatever we are seeing
in the market and then we are seeing what are these respected economists
sharing with us and we will take their opinion and what are the their insights
coming onto I had seen a brief recession in the year probably if I am NOT wrong
in the year 2008 and 2009 when we had a US subprime and for some few months the
D market had completely gone down and from that time onwards we so it’s almost
being close to ten years that we are going in the right direction and
everything is smooth except in the 2016 when the market went absolutely crazy
and there was a like a 32 or 33 percent appreciation it with an N here from like
in the year 2017 mid June onwards still now in the entire 2017 it has settled
down it is going regularly whatever is the appreciation that goes on every year
that that’s is going on but now these so that’s that’s the general look around so
let’s read what they are saying and they are saying severity of the next
recession and its impact on real estate and both of them are lockstep on one
point the current cycle has run its course and some sort of economic turmoil
looms so that is what they are saying there is some sort of a and we s and
when we read this whole particular thing there is something it’s not been able to
get the full assessment done but there is some economic terminal turmoil which
is looming David Rosenberg and Benjamin Tal had similar messages Wednesday as
they opened the Toronto real estate forum at the Metro Toronto Convention
Center so this is a recent one which has been done on the 29th of November so
it’s a very recent one don’t be that person playing by the old
rules very important that’s what they’re saying whatever has happened as an old
rule it is it’s just don’t just get geared up for the new rules play by the
new rules the old rule was exactly a year ago which was the complacency in
the market almost for the first time in the century last year everything rallied
together so there was a sense of complacency that was there in the
marketplace that is what they are saying what is happening this year in the
market base that is showing so much confusion is a mean reversal to last
year so that is what they are coming up with that last year forget last year try
to see new perspective in this particular year and from their point of
view they are saying evidence points to a recession and let’s let’s figure it
out why are they saying is they’re saying the bull market and everything
was old paradigm he said I find it amazing that so many people that I speak
to who manage money for a living are still thinking of the bull market
mentality because it’s over so they are saying that the bull run that we had it
is over so we have to acclimatize ourselves accordingly while rosenberg
seemed to be hinting at a sharp correction so one of them one of the
economists is hinting that there’s going to be a sharp correction mr. Thal was
more optimistic acknowledging the economy of today is not following
traditional patterns so that is where they are all also trying to figure it
out because things are not moving in the traditional format that it used to be
traditional patterns that used to be there
we are trying to normalize the abnormal let’s face it nobody has a clue what is
happening we are all pretending these are some of the important aspects that
are going on so that that is that is where we have to be become aware I don’t
think so it is there because there is a supply and that is where I give you from
a brief from real estate point of view is you also keep on listening that the
supply and demand is like supply is very very less and the demand is more now
when you see those particular things the prices are not coming down and from the
30 to 33 percent that went to high in the 2016-2017 years and that is where
like everyone we are all we nobody has a clue what is happening that is what they
are emphasizing it we are there we are all trying to figure it out but we are
all pretending and we do not have a clue here both the US Federal Bank and the
Bank of Canada will react differently okay that is what is their inference
that US Federal Bank and we are very much correlated with the US economy and
anything happens there the spill is a over here anyway central bank actions
have worsened conditions in some previous recessions by ignoring the
science why their interest policy rates because recently we have had one or two
interest rate hikes and that is what they are trying to say central bank
actions have worsens conditions and that is why and they’re very much in tune
like they are saying that the interest rate policies are not completely done
properly okay let’s said not into the stock market or somewhere else but try
to gather some information on our real estate aspect of things
this is what they are saying rising interest rates yes that is what we are
seeing it on a daily basis and government controls designed to protect
homeowners from taking on too much personal debt are also impacting the
housing market okay few things a few things have to be
rising interest rates yes we are seeing those ones the government controls are
there to protect homeowners from taking on too much personal dest yes the stress
test you have seen now if you have to go through your mortgage approvals you have
to go through that stress tests are impacting the housing market yes that is
what we are seeing there even I was reading an article that a builder is
also like trying to tell the government that they need to change something for
the first time and this is very important to read the 5-year rate is
higher than it was five years ago important so things are very much this
is has to be that the five-year rate is higher than what it used to be five
years ago so many so people are starting to pay more so those people who had
taken their mortgages may be variable long time ago they are feeling the pinch
that will mean less disposable income for entertainment and other purchases
absolutely because if you’re paying more on your marketers you’ll have to cut it
somewhere mr. Thal said if the Bank of Canada continues to raise interest rate
perhaps as high as a neutral 3% plateau it’s taking a big risk that is what they
are saying that in case if the Bank of Canada because see in case if everything
the Bank of Canada seizes it differently and it keeps on continuing to raise
these interest rates it is going it is taking a big risk
nothing is gradual about Bank of Canada rate hikes and that is what they are
coming basically you are confused in the end that’s what they are
coming up with we have no clue and we are confused you have inflation so one
side we have inflation and we have growth we are seeing tremendous growth
growth is starting to slow down that is what is there inferring that is what
their information is coming over to them so when the growth is slowing down if
you are Bank of Canada do you really want to start raising interest rates
aggressively at this particular point so in the end what they are influencing
here is if the interest rates are going to rise there is going to be a big risk
and there is going to be a problem he said there has been nothing gradual
about the bank hikes so far and that is what they are very concerned about
because there were some – interest rate hikes I think so in the recent months
and that is what it’s nothing gradual they are saying in
fact we are already more or less where we were in many other cycle this is not
a gradual increase yes it started from a low base but it’s not gradual it’s been
rising very quickly so that is what they are not liking and that is where
inflation and growth are not making sense to them both trends leading into
past recessions have worsened the situation so that is what is their
conclusion there and in the end they are just telling you buckle up
so that’s their bottom line and at this moment
let’s stay heads over to our mortgage expert and let’s see what he updates us
on the format of this bird let him review this particular article
yes faisal recession is looming high what do you have to pour your thoughts
on this but so 2009 when you were talking about 2009
you know briefly it started late 2008 and 2009 so you know where properties
where only grow purchase I saw and six months later almost yeah the from the
purchase to the Roebuck it was about eight months gap and I remember it was
over 20 percent hike in the timeframe of January 2009 to October 2009 very true
okay so to two point that type part of recession it’s usually temporary it’s
very short period of time it goes back up that’s number one number two
regarding the increase in interest rate I agree with with the new shape news
that yes it is not gradual it is quite aggressive and there are many reasons it
is aggressive but it is definitely not helping the market one reason it is
aggressive is our dollar which is not doing well and it’s there’s a whole lot
of thought that I will keep off the show but if you look at the economy and if
you look at the dollar value there is a reason why the government is trying to
push the interest rate hike however that will affect negatively I can see that as
well so yeah all in all what’s being mentioned it’s definitely true it’s it’s
it’s essentially a formula for I cannot say disaster but there is a risk of it
I’ll narrowed them down to 3 4 points see in 2016 2017 we had
30 to 33 percent increase in the prices yes now so that that was one aspect the
government reigned in the stress test gave it over and then now they have done
the increase in the interest rates so so that is where the government portion
came in over they they managed to handle this particular situation but the main
thing that we as real estate agents when we are going in the market and showing
the supply is not there we are struggling now to find properties in a
price range in the Toronto area Toronto is almost becoming out of reach for many
of the clients and that spillover had been in the outer in the suburbs now
with these recent so the supply and demand is there now next one is this
last week that we discussed the Oshawa GM plant shutdown which is looming there
you know and that is where I mean I absolutely think from all of these
aspects from for five things angle we have no clue and but something is
happening and that is where I mean that article is I mean and those are the
experts so I mean they’re saying there is something happening and that is what
I was wanting to point out a we as general public and should be an when
dealing in real estate should be looking at those three four five factors what is
going on we have no clue but there is something that will happen down the line
that there will be some adjustment I would say it has an adjustment there
will be some adjustment so some some some up and down and so that it
stabilizes the entire thing stabilizes as such because I was going through an
article today that a builder is now requesting the government that that you
know like whatever you had reigned in with the interest rates and with the
stress test it is now you need to take it off the table and bring some respite
otherwise there is something else going to happen here you know what
what builder is trying to say does have some valid points because every time if
you look at government policies to control the economy like sort of I can’t
say control but to sort of guide the economy those actions are usually after
the problem has been occurred not before ordering and once the once that solution
is placed in in the system it takes some time for it to reflect shock so that
that’s what our problem was 2016-2017 when prices went up but changes were not
done as fast and they didn’t take effect as fast now at this moment the changes
that have been done are affecting us negatively yeah no that’s what we
figured something something is coming in you just be aware buckle up that’s it
however one thing I want to say for two buyers specifically that you know your
home is an investment it’s a long investment can you can you always be
lucky to buy at the cheapest price it’s not possible yeah just be approved and
path whenever you’re buying be a fear never weary and unfold it you can buy it
buy it because does not matter if your home went down $20,000 next month
because you’re living in it anyway you will pay rent somewhere else
yes yep oh yeah that that’s what I don’t be an emotional buyer be a prudent fire
yes okay let’s head over to our next format so let me guide you there we were
uh we are reviewing this home buying step by step Canada Mortgage and Housing
Corporation guide for buying home step by step
and we had covered in the last few webinars we have covered step number one
is home ownership right for you in the second one in our previous webinar we
had covered with some sound glitches are you financially ready to own a home and
in our last webinar we had covered financing your home where we had our
expert walk us through lots of finer details there and now when we were on
this particular financing your home this is where the CMHC guide took us and that
is where we went it was very important part here no your credit score and they
guided us that we should go to CMHC dot CA forward slash credit report and that
is where we headed and so that’s why we are deviating slightly for this
particular webinar and then once we complete the review of the credit report
and the score we will be back on step number four and that is where we are now
let’s get into the credit report and score which is our main topic of
coverage for this one and let’s head over to an important aspect here let me
get you and update now this is the financial Consumer Agency of Canada and
they have done an excellent work I would say regarding understanding your credit
report and score now we’ll be going fast on this particular one because we we
will dwell more into the next aspect of it which is a workshop on understanding
your credit report and score and we will be able to learn quite a lot in there
too now we as everyone is affected we all have credit report
since coal we all are part and parcel of this and we have very many queries
regarding the report and score and we always keep on looking for answers where
can we find the right answers whom should we call where can I get this
basic information and this particular PDF again let me show you where exactly
these links are so give me a moment here and let me take you here right here in
this webinar where you are at this particular moment and this is being
live-streamed if you go down and show more you will be able to get a link on
all these particular ones let me enlarge it for you so in India with YouTube live
streaming wherever you see show more and then you should be able to go and see
all of these ones all of these links are there for you the understanding and the
workshop both are there so you can get access to these reports right away ok so
let’s get over to this particular one it’s a very important PDF and it will
make you understand the credit report ends course let’s try to be fast and we
will get our expert as and when we required here is a brief about the
financial Consumer Agency of Canada which is called FC AC with educational
materials and interactive tools the financial Consumer Agency of Canada
provides objective information about financial products and services to help
Canadians increase their financial knowledge and confidence in managing
their personal financing so this entire booklet entire PDF is done by financial
Consumer Agency of Canada this is their PDF and we will be doing a workshop on
it which is like a 50s lights power presentation and a very powerful power
presentation and we will be they’ll be taking
due to that particular one next so let’s go down and see you have table contents
and if you will be a just glimpse through this one you will be able to
understand they are covering each and every aspect of it what is your credit
report what is your credit trip score who creates these who can use these what
is in my credit report how long does information stay there how
are my debts rated on credit about how can I build my credit history and you I
can go on and on and this table of content is its it is the whole nine
yards it has each and everything how can I use my credit reports to protect
myself against fraud how can I get the credit report for free how can i order
this report for score for a fee how can I contact Equifax
how can a contract TransUnion okay at this particular moment let me take a
brief from the market expert on Equifax and TransUnion and so a minor info input
from him and then we go there okay faisal quick question at this moment I
mean VC Equifax VC TransUnion IC Credit Karma and I see Baro well now can you
guide me what exactly is like all these three or four I mean where things are so
primarily there is there are two credit reports one is Equifax and another one
it is TransUnion now Equifax is used widely by a lot of lenders almost all
lenders in the mortgage world but if you go more towards let’s say car financing
you they use more TransUnion they have their own benefits and their own
drawback however now they both report very similar their scores are very close
to each other but the calculation of scores they have their different
formulas borrow well and Credit Karma are both ways based on TransUnion okay
get information from TransUnion and what they get is something called as a credit
vision score which is a little bit different different than the beacon
score it’s it’s slightly higher usually sometimes it could be lower as well
depending on when the update was but all of them borrow well and and Credit Karma
there are third-party companies that do get the information from TransUnion okay
when we are on this particular one so but I was also reading collect though
you get all of these information from Equifax TransUnion but but the banks use
a different score that’s called FICO if I’m right
FICO is in is in states oh okay so that that’s nothing to do with it’s a
beacon score they they use yeah beacon score is the right term and that is
called that is from Equifax okay so now III mean do the bank’s rely completely
on Equifax and TransUnion or they have their own set of now they they rely on
on Equifax mostly sometimes if Equifax has some negative information or things
that sometimes don’t make sense they will also check TransUnion at times
when I check a credit bureau and if it does not make sense i myself pull
TransUnion as well to cross-check and reference as to what is on Equifax and
is it is it the same thing on TransUnion or something else because
depending on name depending on you know date of birth city and so on you may
have information that actually doesn’t belong to you okay now when we are just
on this topic I was also reading I mean when I I was going through this report
that you can get your score report for free but the score you have to pay a fee
for it sorry yes there is a fee for it yes so
the report you can get it for free but not in the score I mean not not the
score you’re right and and the report comes in mail or you can go to Equifax
Center and get get it from their printout but if you want a score on that
report you have to pay for it okay let me get back appreciate your input there
thank you okay let’s head back to where it is so so you are that that is what I
was saying how can i order my credit report or score for a fee and that the
credit report is free the score is always you have to pay for
it and then they go through some examples of credit report and scores and
I was I’m really amazed that the way that they had put each the entire report
and how they explained it to you amazing amazing stuff here so kudos to whosoever
has put this together and it’s really a very very important one okay now
building a good credit history is important for your financial health but
of this each one of us have to do that and you can also use your credit report
to check for signs of identity theft very very important you you have to once
in a year you should review your credit report and if possible you can order
your score too and make sure you that there is no identity theft on there and
that that should be very important here okay so now let me take you to that
particular let me get you onto the PDF and that will help us guide
with more of the information here okay so now I have highlighted points and we
are going to go through it so again we are on understanding your credit report
and scores and now let me take you financial Consumer Agency of Canada I
have gone through this one and now let’s head over here yes
millions of other Canadians you have a credit history along with millions of
others Canadians so everyone has a credit history here you have the right
to see your own credit report and there are ways you can get it for free now
I’ll show you at this moment let me see how can I answer you this particular one
all all four of these ones you can get them for free and let me see if I can
take you over to four of them and let’s start with where you can get it for free
okay now let me head up here and let me zoom it for you yeah so this is the page
again all these links are in the show below in the live streaming on YouTube
and where it says show more you will see all of these links here you can request
to obtain my free credit report from Equifax again
TransUnion has it credit bureau request form again all these links are there you
can fill this out and you may also request your credit report by phone
those are the information for TransUnion again Credit Karma and as and when these
comes you can go to their website visit their website Credit Karma not CA should
be able to get it for free your credit score should be free and now it is okay
so they are giving your credit score for free so they are basically giving you an
idea and that that is very good for them because
now you can also get your score for free again Baro will also does the same thing
and I am now taking you to borrow will free credit scores and reports get my
free credit score so you have two places where you get them for free and at two
places you can order them and the Equifax and TransUnion are used by most
of the lenders so when you are serious contender for mortgages you can have
borrow well and Credit Karma to get an idea and you can take it from
there okay so now let’s head back to our stuff
where we are and let me go there okay so yes there are ways you can get it for
free knowing what is in your report is very important it could even affect your
ability to rent housing let’s some of the landlords are requesting these stubs
or get hired for a job so it is in your interest to have a control over what is
going on this guide can help you understand your credit report and score
improve your credit score it will make you understand it can improve help you
improve it it can correct errors in your credit reports you you you should be
absolutely this is like this is your it is in your interest it is in your
absolutely realm of your work schedule that you should have an idea where is
your credit order your credit report and score so you should have an idea where
things are where you are going and where you are heading and your ability to
purchase things and sort of things very important aspect you should have a
complete idea about your credit report and school that’s the
like what is a credit report a credit report is a summary of your credit
history if you have ever used a credit card taken out a personal loan or used
to buy now pay later offer you have a credit history let’s highlight some of
the important for our aspects of when you opened your account your credit
report contains factual information about your credit cards and loans when
you open your account how much you owe whether you make your payments on time
whether you miss payments whether you go over your credit limit and now comes the
next interesting part your mobile phone and internet accounts may be reported
even though they are not credit accounts and at this moment let me take our
mortgage experts review on this particular one regarding mobile phone
and internet accounts and ask you to walk us through this important
information mobile phone internet internet accounts I mean what’s going on
here what essentially mobile phone and
internet accounts are the easiest ones to set up so yes that is it does like
they’re open very easily they could if you don’t check your credit report they
could like you might see these accounts on your bureau’s that don’t even belong
to you okay again again again here so that means you’re saying someone can
easily misuse them yes really yeah there’s there’s least amount of
security check for mobile phones and internet accounts so someone someone can
but but the main thing is when you are trying to go and seek a mobile phone
they they check all your information there
so there are some companies that do that there are some companies that don’t
it’s very inconsistent a privacy chapter how okay so it’s not it’s not controlled
it’s not governed there is no body that really says you need to have these many
things front and back of ID or so on so forth
so they may vary so basically they can rack up your decks yes oh okay
yeah and it’s not sorry it’s not a whole lot of money usually yeah I’ve had I’ve
had multiple phone calls regarding it that oh I don’t know this Crary this
Bell phone and I’m not sure where it came from and then they start doing
investigation if it does not belong to them it does like we are able to remove
it however it does take a time at some time so you’re right in preserving your
information carefully is very important shredder is a good thing to use if you
have a mail that comes in with your name at least you know the patter cover you
should the the envelope that it comes in if it has your name address information
on it make sure you start it I appreciate that
okay this is like yeah III mean I was because numerous parties that we have
dealt with mobile phone has been you know like what if there is not paid even
that is being reported and that the sports the credit yes so so a mobile
phones are playing a very major role there so that and you know these are
these are things that clients are not aware of let’s say okay if if client is
aware that hey I didn’t pay a credit card then at least client is conscious
and they make some effort something versus if you just don’t know it’s a
problem and it’s a problem when you’re going on going for a pre-approval yes
okay let’s head back okay checking and saving accounts that have been closed
for cause due to money owing or fraud committed by the account holder can also
be included so everything like we are banking and every aspect remains there
okay what is a credit score in Canada credit scores range from 300 to 900
points the best score is 900 points I’m slightly trying to go very fast the
basic because we all have an idea but at times when we are stuck this PDF is
extremely handy you can go through it and you can read each and every aspect
of it lenders and credit reporting agencies produce credit score under
different brand name such as beacon empirica and FICO that’s where I had
heard the term FICO and that is what I was trying to get an answer for so
though those are the some of the aspects of that particular one why might the
credit score I received be different from one from a lender is using that’s
what we said they are different slightly different between Equifax and TransUnion
a credit score you ordered for yourself may not be the same as a score produced
for a lender that’s where I I mean they’re reporting criterias are slightly
different they’re all in the ballpark figure there but they not be exactly the
same okay who creates my credit reporting scores now this is interesting
so you you should have an idea here credit reporting agencies are private
companies that collect store and share information about how you use
an agency is called a credit bureau or just a bureau so these are basically
private companies in Canada there are two main credit reporting agencies
Equifax Canada and TransUnion Canada okay so let’s when a lender or other
organization checks your credit or pulls your report it is accessing your credit
report add the credit reporting agency other sources of information include
collection agencies office that handle child support and public records filed
with courthouses let’s get some information review from our expert
regarding the child support information there so let’s head back to him and let
us get him to review this particular part yes yes sir
child support child support and spousal support okay they both go through a body
called in short form called as fro in a long form it’s called family
responsibilities office okay it’s an office that works very close and
conjunction with Family Court for individuals that Oh support payment on a
monthly basis Oh child support and this body is very I would say powerful I have
seen them take away driver licenses if you don’t a if you don’t pay your
spousal support oh okay boating license you name it they’re very
they’re very powerful body and they they put the
if they put that on your credit bureau so any child support or spousal support
that shows on the credit bureau and is that year you’re supposed to be paying
gets added to your liabilities so ultimately it reduces your borrowing
power yeah that’s what I say I mean so both of them are getting reported on the
credit reporting agencies yes and because we’ve had clients who had child
support or anything outstanding it’s difficult to so and we also like when we
are on this topic we also have in case if there are any what taxes your your
taxes if you haven’t like file to your taxes does that also get reported you
know what depending on I’ve seen sometimes they are reported sometimes
they’re not depending on how far the proceedings have gone most times you
know if your taxes are not paid and it’s not its outstanding
you get letters from CRA if you ignore them you get a call and after that I’ve
seen you know even bank accounts frozen I’ve even seen on credit bureaus things
along those lines so I think it depends on how much you ignore them or don’t
follow up or you know things along those lines
so I mean income tax is also getting reported on credit reporting agencies
nah not income tax when it is paid on time when you don’t pay for instance
let’s just say someone sold on a rental property a client sold or rental
property with a big capital gain and if they don’t file their taxes there is
step by step that CRA takes and at one point they do put that on
credit bureau but it is not the first time that they put it on the credit
bureau it does take some time okay but I mean we know collect lenders
will not do your mortgage or if you have income tax not file is that right
absolutely absolutely so is that getting reported on the
credit reporting agencies or how do they come to know click okay this person
hasn’t done his income they and they they report on credit bureau right on
the credit bureau so basically so CRE that means in case if your taxes have
not been done they are getting reported on the credit reports if they are not
being done if you owe them it’s not usually because if they’re not being
done but if you owe them then yes okay so okay so basically okay you haven’t
done them but you’re not buying them mm-hmm and but you can’t get a mortgage
then yeah it’s a very difficult yeah almost impossible but if you if you have
not owing them but you haven’t done them how do they come to them then it’s a
gray area okay so in the end I mean like something will come because if you’re
not if you haven’t filed then down the line you will be owing and it will get
reported okay see even if even if let’s say someone thinks oh you know it’s not
right it’s not showing unknowing credit bureau and i haven’t fired taxes let me
just take on a mortgage let me start CRA has the first lien yes yes okay no
because see that the mean that the reason I’m pointing it out here is key
like if you haven’t filed your taxes its way we can’t get a Marquesas that right
if you haven’t not necessarily in every case okay okay it’s case by case okay
let’s head back to our Wow these are small very small things but you you have
you have to have an idea there yes yes these are you know um the structure is
the same but these details make it or break it
sure true okay let’s head back to our PDF
okay now we are back to our PDF okay so that is some of the synopsis which we
are giving you regarding the child support and spousal support now let’s
head to the next okay who can use my credit report and score there are
regulations in place to protect your personal information including your
credit report iii-i’ll when I go back just remember this Feisal I’ll be asking
you I I mean aren’t we Equifax recently let me get back to you
on this particular Feisal Equifax recently had a quite a
large breach of data mm-hmm so I mean they have all our personal information
yes and I mean we are absolutely now vulnerable so we are in a world of world
of technology which is which makes our life easy but also makes us vulnerable I
mean I I mean at this moment I mean like these are the two companies which are
doing everything and they have all our information and they’re receiving
information from every aspect of our like life I mean you’re buying selling
something and it’s getting reported everything is there so so and they’re
vulnerable oh is that how do they okay let’s do that
yes solution to that is your credit cards usually offer an insurance called
as identity theft insurance yes I mean that the exact aspect that I was trying
to ask q here is now these are private
companies and shouldn’t government be having their own company here or just
leaving it to private companies and they are working on it
I mean it did or or what exactly is there
well yes these are private companies but they’re also not they’re quite large
they’re quite quite large it’s secured and so on it’s just you know things
happen of this nature when the data is that much more valuable so I think you
know how they say buyers beware I I strongly recommend clients to get some
sort of a identity theft insurance it’s not expensive it’s it’s a very
inexpensive product very easily available through your credit card or
you know many different forms that you come come to you you said identity theft
insurance identity theft insurance okay so but people like a public should look
into that public looking into that just to make yourself because these are
private companies you have to protect yourself at a certain stage exactly
okay let’s head back okay
usually your credit report can only be used to lend money or extend credit to
you collect on a debt you owe consider you for a rental housing or for a job
now this is I mean III would like to know why are they wanting to know about
the job let’s let’s head back again to our expert there let’s ask him what is
going on with I mean they are using your credit report and scores for a job these
days yes yes because I do not just jobs or rental even for rentals yes
rental I understand okay so rental is part and parcel of the real estate
housing let me let me just tell you a few scenarios okay let’s just say a
financial adviser has been bankrupt for three times financial adviser okay okay
okay do you think that would make do you think that person is suitable for that
job okay understandable because if he can manage
himself how will he manage your friends now now
the body allows like under exceptions they are loved one how okay okay okay
under exceptions so so that is where it is coming handy exactly okay what’s
making sense okay that’s one scenario okay another one that I have seen is
let’s just say specifically I’ve seen is a under security clearance okay like
something is something a high-paying I would say hi for instance all in
financial institutions regardless of what position you do your criminal
background check is done and your credit is checked and if it has some blemishes
you’re asked to sort of explain okay and sort of go from there so yes that is
one of the reasons so basically they’re trying to understand you as a complete
person okay makes sense okay let’s head back from the way we are going and we
are still on page 8 of 44 and that the rest of them are not there I had cut it
short but I mean let’s see how much we can cover maybe we’ll take a few minutes
extra because it’s almost 8 o’clock and we’ll try to have a few minutes extra
and see if we can at least cover half of it provide you with insurance ok credit
report and score provide you with insurance what does that comprehend neat
a direct business need okay let me ask him about what does that mean provide
you with an insurance what does that company here and what does that come
from comprise provide you with insurance provide you with insurance essentially
like some sort of assurance some sort of CEO okay yeah make sense ok key like you
you have a stability you you are a person who has managed to maintain his
finances so this is the financial aspect of you is okay so some some kind of an
insurance on that one okay lenders employers or landlords can only use your
credit report when you give consent very important so I mean no no one can be
using this without your consent letter there so just be very cognizant of this
particular aspect of it usually when you sign an application for credit you allow
the lender to access your credit report we all have to sign that so some of
these aspects you just have to make sure key like sometimes when you ask yourself
collect you’re not accessing my credit report just be cognizant he is not I
mean by law he he cannot who doubt you written permission he cannot
access this let me again seek his info on this particular one for a moment yes
so that that is absolutely like without a consent you cannot access someone’s
report absolutely not so even on a job letter or something
they will have to sign you with something of the sort
absolutely these are essentials are basically junctions these these are
basic essentials also you have to understand the more competitive let’s
just say whatever you are applying for a rental a mortgage a mortgage is standard
you have to do a credit check but a rental a job whatever else you are
applying for if you it’s a supply and demand if there
is high demand for that product you are one of the competitor and for that
product and therefore there will be also all sorts of requirements place to
filter out and have the best of the best for instance let’s just say there’s a
downtown condo close to CN Tower penthouse you know a priced right there
will be lots of applicants yeah people trying to purchase the property I am if
I am the landlord of that that property I’m looking for the best of the best
yeah yes you’re trying to see if they have a good credit history and yes these
things I mean let’s just say if I’m renting a condo in North Bay yes much
different I may not even need credit report because I may not have enough
applicants okay makes sense so in the end that the the basic thing here is
like see no one is able to access your without your consent and if someone is
doing it you can report it absolutely yes you can challenge so any credit
searches that are done on your credit report without your consent without your
concern can be challenged can be sullen soon
that that is the gist of this particular one okay wonderful makes sense so we are
making you aware like yeah landlords lenders employer Landers can
only use your credit report when you give your consent so it’s very important
that you are giving consent order some provincial laws permit and government
representatives including judges and police to see parts of your credit
report without your consent so only like some provincial laws may
permit it so you just have to be clear judges and police is are like so you you
may have to get more info on that one in which province you are and how it is
taking place okay next is I think so we have touched only eight or ten pages of
this particular one so and it’s almost like 8 o’clock at this moment and let’s
head into this particular section for next time and in the meantime let me get
you two of the websites of the mortgage expert give me a moment here and let me
take you there as soon as I am able to get you on this one
okay so ladies and gentlemen your mortgage expert is faisal garcia and
this is his one of his websites let me see if I can zoom it further and so his
website is faisal garcia calm and he is our mortgage expert par excellence and
he is also an absolute expert in the credit repair and that his his let me
again see if i can increase this one it is his another website which is called
credit repair now dot CA so two of his websites and you can go there and seek
direct contact with him and in case you’re planning to
get a market are you planning to get a credit repair done and let me walk you
through three of my pages so you can comprehend where we are and where we are
going so the understanding of the credit report and score is probably taking us a
wee bit of more time than we anticipated and let’s see if I can get you yeah so
our credit report and score is will be continued for the next a week and now
let me take you over to two or three of the websites that are there and so this
is like one of my pages which I email to email you constantly to subscribe which
is called MA in real estate that is master of all real estate in the Greater
Toronto Area whereby I walk you through I create eight or ten articles on a
daily basis for you and put them together for you and I email it to you
daily and that was what we were discussing today economists at Toronto
real state forum recession on the way so that was the headline for today and that
is what we were working on today let me again give you next two pages and so
that you can understand those two pages give me a moment let me highlight them
and those are two of my web pages that will give you a brief about where things
are and where we are going and as soon as those two pages come in over and we
will be these are these looks very easy that the credit score but I have seen
many people asking us simple basic questions and they do not have access to
getting this correct information that is where this PDF is extremely handy and
walks you through okay so let’s and that is why we are
spending a lot of good time in here to understand and guide you some of the
things that we come across on a daily basis and let me now take you to the two
pages that I’m walking you through if you are new and you can always register
here where I will be guiding you with live webinar we have on our every Monday
between 7:00 and 8:00 p.m. and that is Manoj at 3com forward slash webinar and
when you scroll down on these particular pages we are doing it on every Monday
working Monday and that is where we are now this is all the previous webinar of
videos if you click on this particular link you can see all my previous webinar
videos the ones that are completed will be at the right away here and the ones
which are coming next will be here like we are doing the credit score and report
for today so that was the coming soon and these are constantly updated now
regarding the previous webinar videos once you click on this webinar video it
will take you to another page and let me get that page across to you and as soon
as that page comes I will take you back yes now this is the page when you click
on that particular webinar videos and you can see all our previous videos here
introduction down payment rent versus buy it pays to own legalities of renting
marijuana in condos and a very excellent one on power of sale and foreclosures
here home buying step-by-step that is where we are home buying step number two
home buying step number three and that from that is where we have deviated
regarding your credit score and report and that is where we are for today
so again ladies and gentlemen thank you very much for joining us for today
evening let me get you our expert there to conclude the session for today yes
sir your thoughts on today’s well we didn’t cover too much but we were slow
and but to the point where it slow and steady wins the race
I absolutely appreciate that appreciated I I think the topic we are also covering
is extremely important and a lot of times I have seen clients
that have 20% down payment 25% down payment but a lender looking at a credit
report comes back and the comments that they make sometimes I cannot even share
those comments is the client is irresponsible fine Wow
it’s not client does not understand what credit is client cannot get a mortgage
at 50% down Wow Wow yes it appends on because see and if you look at it from
the lenders perspective because there are sometimes comments that they make
and I don’t agree with them and I have to call and I set up a conference call
and sort of try and understand as to what they mean and their answer is
Feisal we give loan on home however our goal is not to take the home away from
the client our goal is to continue getting the payments in time so we can
pay our investors because banks have investors and so they’re looking for
this revenue stream that welcome month after month and if someone has not shown
a history that they can make those payments of those small bills like you
know credit card phone and so on how can you
but that client to pay a full mortgage payment really very well said yes that
that is where I was you know like see what everyone had a credit history and
everyone should be reviewing this because see earlier we were like
scrambling ourselves how to get this information across to the general public
I mean like anyone is asking here is a PDF here is a workshop they have a
PowerPoint presentation just go through it you will come to know a lot of things
I was really amazed at this PDF that the government has put together that
explains you each and everything about your report how to interpret it very
very handy guide there and that is why I mean these are all steps to home buying
I mean you you have to do your homework that is when you said you like some of
them even giving 25 percent and the lender is coming back no these are its
responsible I mean I’ve seen I’ve even gone back to the lender and said how
about because sometimes clients have parents that are willing to help yes and
I’ve even tried to structure a file where I would refinance parents home
take some equity out and do a 50% down imagine five hundred thousand property
you have two hundred and fifty down and the lender said Faisal the client is
irresponsible oh okay at this moment I think so just reviewing
your credit report and score will save you money in interest rate will save you
money in how much you can get it is very very even if everything is okay
just double-check it just make sure you know where you stand where you are going
so this is real report once a year once a year get it for just just just the way
you go to your family doctor for a health check-up you know your tax
accountant your financial planner it’s a good idea to check your credit
once a year wonderful let’s call it a day at this particular one will be again
reviewing it for next week absolutely greatly appreciate your time
and input here Faizal and let’s call it a day thank thank you for having me on
the show sir and thank you again audience for listening to us and taking
all that we have to offer for your home ownership I appreciate that
without without any sound letter saying something let’s call it before anything
goes wrong okay good evening sir thank you again for everything thank you to
the audience thank you for joining we’ll see you next week Monday thank you guys
everyone bye

One comment on “Best Rent-To-Own Homes Toronto GTA – 11: Credit Score & Report – Part 1”

  1. Manoj Atri says:

    Feel free to call / email me at 416 275 2089 / [email protected]

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