{"panels":[{"content":{"params":{"text":"

Before you take out a loan, ask yourself: <\/p>\n\n

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Can you afford the loan? <\/p>\n\t<\/li>\n<\/ul>\n\n
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  What do you plan to give up in order to make the payment? <\/p>\n\t<\/li>\n\t
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  First learn how to make an accurate and sensible family or individual budget <\/p>\n\t<\/li>\n<\/ul>\n"},"library":"H5P.AdvancedText 1.1","subContentId":"afccc024-fe1a-4aee-b197-f34f6d4940a0","metadata":{"contentType":"Text","license":"U","title":"Untitled Text"}},"title":"Can You Afford a Loan?"},{"content":{"params":{"text":"
  - Debt Payments-to-income ratio is calculated by dividing monthly debt payments (not including house payments) by net monthly income. \n\t
    - Experts suggest that you spend no more than 20 percent of your net (after-tax) income on credit payments. <\/li>\n\t<\/ul>\n\t<\/li>\n\t
    - Gross debt service (GDS) ratio is calculated by dividing your monthly mortgage payments (including principal, interest, heating and taxes) by your gross monthly income. \n\t
      - Lenders will not allow you to spend more than 30 to 32 percent of your gross income on shelter costs. <\/li>\n\t<\/ul>\n\t<\/li>\n\t
      - Total debt service (TDS) ratio is calculated by dividing your monthly mortgage payment including payments on any outstanding debt by your gross monthly income. \n\t
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        Lenders will not allow you to spend more than 40 percent of your gross income on shelter and non-shelter financial obligations. <\/li>\n\t<\/ul>\n\t<\/li>\n<\/ul>\n"},"library":"H5P.AdvancedText 1.1","subContentId":"5ad9ae48-6c25-418f-8a6e-1179160b7ff1","metadata":{"contentType":"Text","license":"U","title":"Untitled Text"}},"title":"General Rules of Credit Capacity"},{"content":{"params":{"text":"
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        The GDS is your monthly mortgage payment, including principal, interest, heating, and taxes, as a percentage of your gross monthly income. The lender will not allow you to spend more than 32 percent of your gross income on shelter costs.  <\/p>\n\t<\/li>\n\t
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        The TDS ratio is your monthly mortgage payment, including payments on any outstanding debt as a percentage of your gross monthly income. The amount the lender will allow you to spend on shelter and non-shelter financial obligations combined should not exceed 40 percent of gross monthly income.  <\/p>\n\t<\/li>\n<\/ul>\n"},"library":"H5P.AdvancedText 1.1","subContentId":"125f32c3-3fa4-4344-9518-8149a999314d","metadata":{"contentType":"Text","license":"U","title":"Untitled Text"}},"title":"GDS and TDS Ratios"},{"content":{"params":{"text":"
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        Guaranteeing a debt <\/p>\n\n\t
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        If borrower doesn\u2019t pay the debt you will have to <\/p>\n\t\t<\/li>\n\t\t
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        Including fees and collection costs <\/p>\n\t\t<\/li>\n\t<\/ul>\n\t<\/li>\n\t
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        Statistics show that 3 out of 4 co-signors have to pay<\/p>\n\t<\/li>\n\t
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        If you do co-sign a loan <\/p>\n\n\t
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        Be sure you can afford to pay <\/p>\n\t\t<\/li>\n\t\t
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        Liability can keep you from getting other credit <\/p>\n\t\t<\/li>\n\t\t
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        Could lose the property you pledge as security <\/p>\n\t\t<\/li>\n\t\t
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        Understand provincial laws <\/p>\n\t\t<\/li>\n\t\t
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        Request copy of all over due notices <\/p>\n\t\t<\/li>\n\t<\/ul>\n\t<\/li>\n<\/ul>\n"},"library":"H5P.AdvancedText 1.1","subContentId":"7caf5f74-b54e-4f12-a644-ebf4f019f2ac","metadata":{"contentType":"Text","license":"U","title":"Untitled Text"}},"title":"Co-Signing a Loan"},{"content":{"params":{"text":"
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        Your credit experiences, or lack of, is a major consideration for the creditor <\/p>\n\t<\/li>\n\t
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        A good credit rating is a valuable asset <\/p>\n\n\t
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        use credit with discretion <\/p>\n\t\t<\/li>\n\t\t
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        limit borrowing to your capacity to repay <\/p>\n\t\t<\/li>\n\t\t
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        abide by the terms of the lending contracts <\/p>\n\t\t<\/li>\n\t<\/ul>\n\t<\/li>\n<\/ul>\n"},"library":"H5P.AdvancedText 1.1","subContentId":"79cb4780-b424-4afc-b878-a8482eefe6db","metadata":{"contentType":"Text","license":"U","title":"Untitled Text"}},"title":"Building and Maintaining Your Credit Rating"},{"content":{"params":{"text":"
        \n\t
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        Credit bureaus collect credit and other information about consumers. There are two main credit bureaus in Canada: Equifax Canada and TransUnion Canada <\/p>\n\t<\/li>\n\t
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        Credit bureaus obtain their data from banks, finance companies, merchants, credit card companies, and other creditors.  <\/p>\n\t<\/li>\n<\/ul>\n"},"library":"H5P.AdvancedText 1.1","subContentId":"617cec4d-f71a-4a36-a1af-372ef57047a1","metadata":{"contentType":"Text","license":"U","title":"Untitled Text"}},"title":"Credit Bureaus"},{"content":{"params":{"text":"
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        The credit bureau file contains your name, address, social insurance number, and birthdate <\/p>\n\t<\/li>\n<\/ul>\n\n
        It may also include the following information: <\/p>\n\n
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        Your employer and position <\/p>\n\t<\/li>\n\t
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        Former address and former employer <\/p>\n\t<\/li>\n<\/ul>\n\n
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        Spouses name, social insurance number and employer <\/p>\n\t<\/li>\n\t
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        Public records and information <\/p>\n\t<\/li>\n\t
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        Cheques returned for insufficient funds <\/p>\n\t<\/li>\n<\/ul>\n"},"library":"H5P.AdvancedText 1.1","subContentId":"82e2dca5-2b35-4720-966d-406857472d6b","metadata":{"contentType":"Text","license":"U","title":"Untitled Text"}},"title":"What Is in Your Credit Files?"},{"content":{"params":{"text":"
        Credit bureau regulation includes the following: <\/p>\n\n
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        Most provinces have legislation to protect: <\/p>\n\n\t
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        consumer privacy <\/p>\n\t\t<\/li>\n\t\t
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        right not to suffer from false credit or personal information <\/p>\n\t\t<\/li>\n\t<\/ul>\n\t<\/li>\n\t
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        Others may only view your file if written consent has been given <\/p>\n\t<\/li>\n<\/ul>\n"},"library":"H5P.AdvancedText 1.1","subContentId":"047c9fd9-1c77-4ec0-889d-328feeb48d77","metadata":{"contentType":"Text","license":"U","title":"Untitled Text"}},"title":"Credit Bureau Regulation in Canada"},{"content":{"params":{"text":"
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        First bankruptcy remains on your file 7 years, second bankruptcy results in both on your record for 14 years <\/p>\n\t<\/li>\n\t
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        Errors in your credit file should be corrected immediately <\/p>\n\t<\/li>\n<\/ul>\n"},"library":"H5P.AdvancedText 1.1","subContentId":"1b7ae4fc-2a49-4941-80f9-4ec244456e87","metadata":{"contentType":"Text","license":"U","title":"Untitled Text"}},"title":"Time Limits on Adverse Data"},{"content":{"params":{"text":"
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        Credit bureaus are required to follow reasonable procedures to ensure that subscribing creditors report information accurately.  <\/p>\n\t<\/li>\n<\/ul>\n\n
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        When you notify the credit bureau that you dispute the accuracy of its information, it must reinvestigate and modify or remove inaccurate data. <\/p>\n\t<\/li>\n\t
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        The law requires credit card companies to correct inaccurate or incomplete information in your credit report. <\/p>\n\t<\/li>\n<\/ul>\n"},"library":"H5P.AdvancedText 1.1","subContentId":"e2d7d066-a4d6-4194-8dce-d70a06ca8f63","metadata":{"contentType":"Text","license":"U","title":"Untitled Text"}},"title":"Incorrect Information in Your Credit File"},{"content":{"params":{"text":"
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        Credit Scoring is used to assess the credit risk of prospective borrower\u2019s <\/p>\n\t<\/li>\n\t
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        Data in credit report is summarized in a credit score <\/p>\n\n\t
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        Helps to predict creditworthiness <\/p>\n\t\t<\/li>\n\t\t
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        Higher the score the better <\/p>\n\t\t<\/li>\n\t<\/ul>\n\t<\/li>\n<\/ul>\n\n
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        A strong credit score will help you get credit faster and at a more advantageous rate <\/p>\n\t<\/li>\n\t
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        The following categories are weighted in credit scoring: <\/p>\n\n\t
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        Payment history Length of credit history <\/p>\n\t\t<\/li>\n\t\t
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        Amounts owed <\/p>\n\t\t<\/li>\n\t\t
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        Types of credit used <\/p>\n\t\t<\/li>\n\t\t
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        Number of recent applications for credit <\/p>\n\t\t<\/li>\n\t<\/ul>\n\t<\/li>\n\t
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        Improve your score by managing your debt responsibly <\/p>\n\t<\/li>\n\t
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        To obtain a copy of your credit report, credit score or score analysis online visit Equifax Canada website at http:\/\/www.equifax.ca <\/p>\n\t<\/li>\n<\/ul>\n"},"library":"H5P.AdvancedText 1.1","subContentId":"41e61a3a-8764-41c5-a6cf-e43a254510cd","metadata":{"contentType":"Text","license":"U","title":"Untitled Text"}},"title":"Credit Scoring"}],"hTag":"h2"}