CTV News - Mortgage Minute December 9

Click here for the full video from CTV.

The holidays can be expensive, and many Canadians will finance most of their holiday purchases using credit cards. On this week's Mortgage Minute, Frank Napolitano shows viewers how they can be smart about their holiday spending, and keep control over their credit rating.

Your credit has become one of the most important parts of the mortgage qualification process. It is one of the first things a lender looks at, and can make a difference in the mortgage rate you are offered when it comes time to sign on the dotted line. A less than perfect credit report can make a potential borrower extremely difficult to qualify.

Some tips to keep your credit in check this holiday season:

• Use discipline when spending.
• Don't max out your credit cards. If you have to use credit this holiday season, and have more than one card, try to spread the balance out. Having credit products at their maximum causes lenders to view borrowers as a potential credit risk.
• Make payments on time and in full - don't skip payments. One missed payment can have a significant negative effect on your score.
• Consider a line of credit for your purchases. Lines of credit typically boast lower interest rates than credit cards - helpful if you carry a balance.
• If you are renewing, refinancing, or applying for a mortgage in the new year, consider having a look at your credit report now to see where you stand.

Talk to an Ottawa Mortgage Broker for more details.