How your credit score affects your mortgage application + MORE Apr 3rd

On the surface of things, Lindsay Tithecott would seem the financial envy of most millennials. The 29-year-old engineering consultant from Kamloops, B.C., earns $71,000 annually, owns an affordable $150,000 condo and already has $46,000 of investments amassed in her RRSP and TFSA. To be sure, Lindsay’s very proud of her accomplishments: “I’m saving 20% of my salary and my housing costs are just under 30% of my income, which is nearly unheard of in B.C.” There’s just one problem: Her spending surpasses her income every month, and she’s piling up significant consumer debt. Right now, Lindsay owes $11,000 on her line of credit as well as a separate $15,000 car loan. “I try so hard to achieve financial balance in my life, but it doesn’t seem attainable,” she says. “I don’t understand what I’m doing wrong.”
Lindsay feels she has her savings under control, noting that she’s currently socking away $400 a month to her TFSA and $220 a month to her RRSP (an amount her employer matches) to achieve her goals…

Temperatures are rising – and that means open houses are popping up in markets across Canada. It’s one of the most competitive times to buy a home – so be sure you’re prepared if you plan to jump into the fray.
Brush up on your mortgage know-how this week with tips for saving for a down payment, improving your credit score – and understanding the current state of the market.
Saving for a Down Payment
Are you planning to buy a home? You’ll need to shell out for at least part of your purchase up front. Saving for a down payment is an important part of the home buying process – and the size of your down payment can even impact how much of a mortgage you qualify for. Here’s how to effectively save while hunting for your dream home.
Read Penelope’s Blog | Saving for a Down Payment
Liberals to Assess Foreign Real Estate Investment in Canada
The Canadian federal government wants to take a closer look at the extent of foreign ownership of real estate across the nation – but critics are saying their efforts won’t go far enough…

Q: Which is more important, credit utilization or credit-­to-­income ratio?
 Right now I earn $60,000 per year and have access to three credit cards with a combined limit of $20,000. I have no other loans or debts and my current credit score (based on a FICO calculator) is about 720. I ask, because I’m starting to look at buying a house, and want to know what lenders consider as a more important ratio? Also, is it possible to better my credit score by reducing my credit utilization (which I would do by cancelling one credit card or asking for a lower limit)?
— House hunter, Halifax, N.S.

Answer from Robert McLister, mortgage planner with Ratespy: A strong credit profile and reasonable debt ratio are equally important if you want the best mortgage rates and terms.
Let’s start with credit first. People tend to overly focus on the credit score. It’s important, yes, but lenders don’t stop there. They scrutinize your payment history, unpaid debts, total debt load, number of open debts and age of accounts, to name just a few…

Shannon Jarrett and Marcin Duran are the original odd couple when it comes to reconciling their very different approaches to money management. Despite sharing a home and domestic life together (including two kids) in Hamilton, Ont., they’re by and large living separate financial lives. “We don’t share any banks accounts but we share expenses,” says Shannon. Marcin pays the mortgage and makes all insurance and car payments, while Shannon pays for everything else to run the household. But that’s where the agreements end—and the problems begin. Whether the financial issue is big or small, Shannon and Marcin are often at loggerheads. They need to find some common ground and get their goals aligned.
For Shannon, saving is her largest concern and she wants to see them growing more income inside their RRSPs and TFSAs. “I’ve always put away $200 a month but I can’t get Marcin to do the same,” she says. “He feels I’m just trying to control him.” Marcin, though, thinks their main priority should be debt repayment—in particular, the $169,000 mortgage that remains on their home…

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