Economic Highlights GDP, Interest Rates, Dollar

Weekly Economic Hightlights from TD Economics:

• Canadian GDP fell 0.1% in August, dampening prospects for the potency of Canada’s Q3/2009 rebound.
  
• Canadian industrial product and raw materials indices declined in September, pointing to continued downward pressure on core consumer prices from cheaper inputs.
  
• Employment Insurance beneficiaries declined in August, but likely exhaustion rather than new jobs.
  
• Bank of Canada sticks to script that higher dollar means slower recovery, pointing to low rates for longer.

Happy Halloween!!

Peter_mckinnon@centum.ca

http://www.peterlmckinnon.com

Rate update Oct29th SPECIAL 3.99% 5yr fixed, 4.15% Standard 5 yr fixed, 5yr VRM 2.25%
www.peterlmckinnon.com

How to rebuild your credit rating...blog update
http://ping.fm/PPIhq

How to Rebuild your Credit Rating

I have had a few clients that have had some trouble with their credit bureau report which affects their ability to get a mortgage at normal rates. So how does one improve their bureau score?

STEP ONE: View your credit file to ensure all the information about you is correct, and that all your outstanding debts have been paid off. To get your credit file, contact,
TransUnion Canada http://www.transunion.ca
Equifax Canada http://www.equifax.com

This is important as many credit providers are happy to update your file with bad news but seem to overlook updating your file when you've caught up or paid off an account completely.
If there are errors contact the lenders and have them update the credit bureau.

STEP TWO: Arrange a loan, likely at a very high interest rate, and then have a perfect payment record over the next 12 months.
Follow up: After a year of making your payments in full and on time, try to re-negotiate your loan down to normal rates.

Car loans are great for this. Car dealerships are usually more lenient especially if you're looking to finance a newer car.

STEP THREE: Get a secured credit card, where you keep money on deposit with your card company to offset the maximum you can charge on your card.
Follow up: After two years of paying your card off on time, apply for a conventional credit card.

Unfortunately the process does take time, usually 12 - 24 months of consistent payments, so if this is your situation just get started and you'll be able to go back into debt before you know it!!

peter_mckinnon@centum.ca
www.peterlmckinnon.com

Variable rates at prime MINUS 0.10% but Fixed rates are on the rise! Majors have moved to 4.34%!! apply now http://www.peterlmckinnon.com

Rate update for October 5th ---- 5 year Variable @ prime!! 2.25% 5 year Fixed 3.75% http://www.peterlmckinnon.com to apply

Broker Loyalty?

I have noticed an interesting phenomenon since joining this industry.

Clients who have spoken with a financial institution about their mortgage needs and have been quoted a given rate and terms. Then our mortgage shoppers go to the internet or broker market and find out they could get a much cheaper rate elsewhere.

After working with a broker to secure the better rate in a comparative product, the bank follows up with the clients (hopefully, although not all banks are very diligent on this process) to find out that they are working with a broker and have secured a better rate.

At this point the banks representative says "oh, I can get you that rate" or my personal used car salesman's favourite " let me check with my manager and see what I can do". Miraculously they come back with a slightly lower rate.

My question is this? What do you do? Take the lower rate from the bank, who obviuosly didn't give you their best rate the first time around, OR do you stick with your broker who was truly looking after your best interest from the start?

Luckily in my experience most people take the second option, but there's always a few that cause me to shake my head!

Rate update 3.75% 5 year fixed, 2.35% Variable 5 year

4 year Special variable at prime!! 2.25%! til Oct 30th.

Visit http://www.peterlmckinnon.com to get started!