Finance

It can be difficult to find a lender willing to work with you when you have bad credit. You may also feel that getting a mortgage is simply out of reach. However, having bad credit doesn’t mean you are barred from owning your own home.

There are private mortgage lenders in BC who specialize in mortgages for people with bad credit who can help get homeownership back within your reach once again.

Here are some tips on how to get a mortgage with bad credit:

1. Have a good credit history

Even if you have bad credit, having a good credit history can work in your favor. Make sure you always make your payments on time and keep your debt levels low. It will show potential private lenders in BC that you can manage your finances responsibly.

2. Have a down payment saved up

Lenders are more likely to work with you if you have a significant down payment saved up. It shows that you are serious about purchasing a home and invested in the process.

3. Shop around for lenders

There is no one-size-fits-all solution when it comes to mortgages. Lenders offer different rates and terms, so it’s important to compare your options to find the best deal.

4. Consider a subprime mortgage

Subprime mortgages are designed for people with bad credit. They come with higher interest rates and more stringent terms, but they can still get you into the home you’ve been dreaming of.

5. Ask about more flexible underwriting processes

When you have bad credit, some lenders may be more inclined to use additional criteria when determining your eligibility for a mortgage. For example, they might also consider your employment history and cash reserves in addition to your credit score.

Mortgage rates for subprime lenders are typically higher than rates for conventional mortgages, but you might be surprised at the options available to you. It’s always best to consult with a mortgage broker first so they can advise you on your best course of action.

When it comes to bad credit mortgage loans, don’t give up. Some lenders are willing to work with you and help you get into the home of your dreams.

Factors to consider when looking for a lender

1. Rates

The rates a lender offers may vary and be more expensive than a traditional mortgage.

2. Terms

The loan terms may also be less favorable, such as requiring a higher down payment or having a shorter amortization period.

3. Fees

The lender may charge additional fees, such as an application fee, appraisal credit, so it can be challenging to get approved for a mortgage with them.

4. Turnaround time

Typically, it takes much longer to process loans through subprime lenders than traditional lenders.

Final Thoughts

Although it isn’t easy, getting a home equity loan or a mortgage with bad credit is not impossible. Some lenders specialize in this type of loan and can help you through the process. It’s always best to consult with a broker first to determine your options.

When you avail a personal loan, you can repay the amount in flexible tenure. The lender determines your EMI after considering your chosen tenure, financial profile and credit score. However, one more factor that significantly affects your repayment amount and EMI is the personal loan interest rate. If you get a higher interest rate, your interest outgo and cost of borrowing will be higher and vice versa. Though the lender determines the interest rate, you can get the best rates through a few methods.

Methods to Get the Best Interest Rates on a Personal Loan

• Choose lender carefully

As explained above, the personal loan interest rate is decided by the lender. Therefore, you must choose your lender carefully. It’s true that you must check the interest rates offered by the lender.  However, you must also check their processing fee and administrative charges. You must compare lenders to find out who is offering the best interest rates. As everything is digital, you need not visit the branches of lenders to find the details. You can just visit their website to find the interest rates and other offers provided by each of them. Research different lenders and then use an EMI calculator to know which lender is offering you the best interest rate.

• Maintain a high credit score

A high credit score implies that you are creditworthy and have paid your EMIs timely in the past. Having a high credit score reduces the risk for the lenders, making them offer you a lower rate of interest. Before applying for the loan, you must review your credit report and check your credit score. You must apply only when your credit score is more than 700.

To improve your credit score, you must pay all your EMIs and credit card bills on time. Also, you must keep the debt utilisation ratio low. While checking the credit report, if you find any discrepancy, ensure to request the bureau to rectify the mistake.

• Approach your bank

When you start researching lenders for a personal loan, contact the lender with whom you have a past relationship. Often lenders offer preferential interest rates to the existing lenders if they have had a timely repayment history and good relationship with the bank. Moreover, you can also negotiate the interest rates with the lenders by leveraging your credit score and financial profile.

• Financial profile

If you have a high income, you are more likely to get low loan interest rates. It is because a higher income level translates to having enough money for repayments. If required, you can opt for a joint personal loan to enhance your eligibility. Moreover, you should avoid changing too many jobs as it reflects an unsteady source of income.

You can use these tips to get the best interest rates on a personal loan. However, ensure that you read the fine prints carefully to uncover any hidden cost. Apply for personal loan today.

There are thousands of people out there that dream of buying their own houses. If you are one of them but are worried about the finances required to afford a property purchase, there is always an option to apply for home loan. A home loan will cover up to 80-90% of the property cost and the remaining will have to be covered by you, which is known as the down payment.

Now, before taking this loan, the home loan interest rate is a big topic of discussion between the lender and borrower. This is because this interest rate is instrumental in affecting the monthly instalments of the loan. Now, the interest rate can differ as per each lender’s terms, and you have to choose which one to go for. There are two different types of interest rates, which are fixed and floating interest rates.

To understand which one is more beneficial, take a look at both the rates and how they affect the home loan EMIs:

• Fixed interest rate

A fixed interest rate, as the name suggests, is a rate that does not fluctuate and remains constant irrespective of the changes in market conditions. This home loan rate will remain the same throughout your loan tenure, which makes it easy to calculate the loan’s monthly instalments as there are no changes in the rate. In this case, planning the repayment becomes much easier. Do note that the lenders usually charge a slightly higher amount for fixed interest rates as compared to floating interest rates.

• Floating interest rate

A floating interest rate can keep varying during your home loan’s repayment tenure. By choosing this type of housing loan interest rate, it will be difficult to get an accurate estimate of the monthly instalments of the home loan since the rate can change. If the market rates drop, you will benefit from the situation as the floating rate of your home loan would drop too, ultimately decreasing your home loan. However, if the rate goes up, you will have to bear higher EMIs.

So, which one should you opt for?

If the market rates are low at the time when you apply for a home loan, you can choose to take a fixed interest rate. For instance, at present, some lenders have brought down their home loan rates to as low as 6.55%. In such cases, it is advisable to take advantage of the situation and go for a fixed rate, especially if you are expecting the home loan interest rates to go up in the future. However, if you are confident with the real estate market and are expecting home loan rates to fall in the future, choosing a floating interest rate can be beneficial.

Ultimately, whether you choose a fixed or floating interest rate, it is a personal decision that has to be made after careful consideration of your budget. It is also important to have a proper understanding of the interest rate fluctuations before making a choice between the two.

The one thing that no investor can deny about the markets is that they are unpredictable. This is especially true for a trader whose general view towards the market is short-term, which in most instances is limited to day trading. Many traders even square off positions within minutes. In such a scenario, it is indispensable to book small profits while you are stock trading.

How can you earn money through stock trading?

Most of the traders do not like to keep their positions open for an extended period. A trader’s mentality is different from an investor’s, who may even choose to hold positions for weeks, months, or years.

You must remember the following points for intraday trading:

• Traders look at technical analysis reports, chart readings, and market sentiments to enter markets.
• Traders earn their living by looking for small price movements in their favour.
• Traders close their positions fast, usually on the same day.

Why are small profits crucial?

Markets are notorious for high volatility in shorter periods. Even a stock investment that may be in a bullish trend over a long period sees frequent fluctuations of ups and downs during shorter time frames that make up the trending bull run. Often, traders may have identified the trend correctly, yet due to these fluctuations, they may end up in the red and make a loss even on a correctly predicted winning trend. So, traders need to keep booking small profits when an opportunity for the same comes up.

What are the prerequisites of day trading?

Many traders close their positions within minutes of executing the trade. The importance of booking small profits is essential for a trader, and high discipline to a pre-defined strategy in such cases is the order of the day.

Those trading regularly should follow these three principles as the ideal trading philosophy:

• Keep booking small profits
• Keep exiting positions if the strategy is showing reversal
• Use stop-loss orders to limit losses

Patience and discipline are of utmost importance while trading.

What are the pitfalls one can fall into while trading?

Traders generally make mistakes in the following ways:

• When the trend goes against the trader, the person waits for a trend reversal instead of exiting and booking losses. Many still do not adhere to the often-prescribed safety of using stop losses.
• Many traders get worked up when after exiting a position with a small profit, the trend further escalates into a higher profit zone.
• Traders rue the missed opportunity and disturb their trading psych. A trader should not regret a lost chance.

Traders should realise that booking small profits is of prime importance. Intraday trading in stocks is not easy; one must show tremendous willingness and conviction. You should definitely consider taking the aid of a financial and investing expert if you believe that they would do a better job with your money.

A home loan means only one thing- that you are planning to buy a house, and the joy it brings is one of the best. But every person who wishes to take a home loan has to go through the hassle of repaying the loan. Need not worry; we are going to share some tips to reduce your home loan interest rates.

1. Home Loan Balance Transfer

Home Loan Balance Transfer is one of the best ways to help you benefit from other lenders offering lower interest rates. In simple terms, you can move your outstanding loan from your current financial institution to a different lender offering better EMI rates.

2. Compare before finalizing

There are tonnes of home loan providers that offer preferential home loan interest rates and flexibility in eligibility criteria. So, make sure you do your study before deciding on a home loan provider. The lower the interest rate, the better the deal. It might take a while to figure out which home loan provider has the best offers to give you, but you should take your time to save as much money as possible. You can utilize the saved amount on other upcoming expenses like setting up interiors, lawyer’s fees, and the upkeep/ maintenance of your new property.

3. Monthly budget plan

A proper planned out monthly budget is considered the best way to keep the stress of paying your home loan at bay. So, you have to make sure a convenient and effective plan is chalked out by you to plan your monthly expenses as well as your home loan EMI. The principal loan amount, home loan interest rates, and loan tenure determine your monthly instalment plan.

4. Shorten your loan tenure

Loan tenure plays a very crucial role in the process. The shorter the term of your loan, the lesser the EMI. People usually go for longer tenures- say 25-30 years, which increases overall interest payment. Going for a shorter loan tenure (10-15 years) will prove to be helpful for you to reduce your total home loan interest payable.

6. Try paying more as the down payment for your new house.

The banks and other home loan providers usually offer loans up to 75-90 % of the property cost. The remaining amount must come through your own contribution. This excludes stamp duty & registration fees and other miscellaneous expenses. This depends on your home loan provider and their policies. But it doesn’t mean that you cannot pay more if you can.  The more the down payment, the lower the loan amount, which will lead to lower home loan interest rates. This trick has helped a lot of new homeowners during the pandemic.

7. Choose festive seasons for better deals.

During the festive season, the home loan interest rates are generally lower. So, keep your eye open during the festive season. Different home loan providers have offers going on during the festive season, which can also prove beneficial for you.

These are some tips and tricks you can use to reduce your home loan interest. Whether you choose to do a home loan balance transfer, shorten the tenure, do part payment or any other method, you must do it after careful evaluation. We hope you found it helpful and informative.

Buying a house is a proud achievement for any individual. However, arranging the finances for a house purchase is no easy feat, especially with the exorbitant real estate prices in today’s times. But this should not come in between you and that home you have been dreaming about. This is where a home loan can save the day. Such a loan provides the finances required to buy the house and offers a long tenure, which you can take to repay the loan.

Now, before you go ahead and apply for home loan, it is very important to understand whether the repayment process is going to be smooth or not. This is why it is advisable to make use of a home loan EMI calculator.

5 reasons why every borrower should use this calculator before applying for a housing loan:

• The calculator is very easy to understand and use

With a home loan EMI calculator, all you need to do is fill up the information in three fields i.e. loan amount, the interest rate, and the tenure in which you plan on repaying it. Once you fill in all the information in these three fields, the home loan calculator will then provide you with the monthly instalment figures in just a couple of seconds!

• It is free of cost and can be used multiple times

One of the biggest advantages of this calculator is that it can be used totally free of cost. You can try out multiple variations by making changes in the loan amount and repayment tenure. This will give different results of the monthly instalments, giving you an idea of whether the loan plan will be suitable for you or not.

• It does not require any kind of personal details

A home loan EMI calculator can be found on any reputed financial institution’s official website and used by anyone. It does not ask the user to provide any kind of personal details of any kind. You can simply check the loan details and see whether the EMI results are ones in alignment with your requirements or not.

• You get instant and accurate results

Manual calculations are not just time-consuming; they can also lead to human errors. This will never happen with a home loan EMI calculator. It is not just accurate but also very easy to use. Once you have filled in all the required information, the calculator will give you the EMI results in seconds.

• It helps in finding out whether a loan plan is affordable or not

There are many lenders out there and it is quite understandable that not every loan plan is going to suit your preference. Using a housing loan EMI calculator will help in learning which loan plan is actually fitting your budget.

Using this calculator will help in being aware of the monthly instalments of the home loan. This way, you will be prepared to pay off all the EMIs without any hassles, which is a positive sign for your credit score too.

Systematic Investment Plan or SIP as it is commonly referred to as the mutual fund industry is a free and simple tool to save and invest fixed sums regularly in a mutual fund scheme. There is a mix-up among a large number of mutual fund investors who believe SIP to be a type of a mutual fund scheme. However, SIP is a mere tool to invest in mutual funds and not an investment scheme in itself. Through SIP, one can save and invest fixed sums periodically. Let us understand how SIP can help an investor in the long term.

Mutual funds are an investment vehicle for pooling financial resources from investors sharing common investment objectives. The Asset Management Company running a mutual fund collects money from investors sharing a common investment objective invests the money depending on the mutual fund scheme’s nature and its investment objective. Mutual fund investors receive units based on the money that they invest and depending on the fund’s current Net Asset Value (NAV). For example, if the current NAV of a large-cap fund that you invested in is Rs. 10 and if you made an investment of Rs. 10,000 you will be allotted 1000 units.

However, if you have a long term investment horizon, it is better to invest in mutual funds via SIP. Here’s how investors can benefit from SIP investing:

Rupee cost averaging

Many of you may not be aware but it is possible to leverage the volatile markets from SIP. Since the SIP sum remains stagnant, investors can buy more units when the NAV is low and fewer units with the same amount when the NAV is high. Since the market fluctuates from time to time, investors may be able to buy more units in the long term, thus averaging out their total cost of purchase. This is referred to as rupee cost averaging.

Power of compounding

Several investors underestimate SIP investments are they feel that they will never be able to achieve a large corpus through small monthly SIP investments. However, they do not know that if they continue investing in mutual funds via SIP for the long run, they will be able to witness the compounding effect. When the principal amount that you invested in a mutual fund scheme earns interest and when this interest is reinvested and starts earning interest of its own, compounding is known to come into effect.

Flexibility

Mutual fund investors can invest in mutual funds via SIP at their convenience. Since there is no upper limit, an investor can invest any amount as per their investment objective and risk appetite. They can invest this sum regularly till their investment objective is attained. The same investor can even modify the monthly SIP sum, skip a month’s SIP or stop their SIP investments midway. Investors do not have to pay any cancellation fees for stopping their SIPs midway.

Use the SIP calculator

Investors who start their SIP investment journey must be keen to determining how much corpus they will be able to accumulate in the long term. Such investors can use an online SIP calculator, a free tool that is easily accessible to everyone. All an investor has to do is fill in some simple details like the total sum that they want to achieve, enter the number of years that they have in hand before they achieve that corpus, and also input the rate of returns they expect the mutual fund to deliver. Within a few seconds, the SIP calculator will display the SIP sum that they need to invest regularly in order to achieve the desired corpus.

To make the right investment decision, proper financial planning is necessary. Also, if you do not have any investments that are targeting long term financial goals like retirement planning, securing your child’s financial future or their marriage, etc. achieving a larger sum, in the long run, can get difficult. That’s because investors who invest without any specific goals in mind often withdraw their investments beforehand. Investors who have realized the importance of saving and investing must be careful with their next step as it involves choosing where and how much to invest. While prioritizing financial goals, building an exigency corpus along with retirement corpus and children’s future should be on the top list.

Ideally, investors must save for the emergency fund as one does not know when an exigency will arrive. Investors are expected to save at least 6 months’ worth of salary in the emergency fund. Once you have figured and saved for life’s unforeseen exigencies the next thing to do is look at other goals and prioritize them as per their importance in your life. All these goals can easily be achieved through a Systematic Investment Plan in mutual funds.

Here’s how you can determine a financial goal and use SIP to target it

Let us assume your child wishes to become a doctor and hence will be taking admission for medical in the future. The current cost for medical in Mumbai is Rs. 10 lakhs. If your child will go for higher education 10 years from now, the cost of medical fees will increase due to inflation. Assuming a 6% inflation rate, the cost for medical will be Rs. 17 lakhs. Thus, starting a SIP that will help you Rs. 17 lakhs is essential and not that will help you earn Rs. 10 lakhs. This is one way to identify the right SIP sum to achieve financial goals that are crucial for you and your family.

If you use an online SIP calculator, it will help you understand that a monthly SIP sum of Rs. 9000 for with an investment horizon of 10 years and a 10% expected rate of return (CAGR) shall help you achieve the Rs. 17 lakh education corpus that will help your child become a doctor.

The above example just targets one long term goal and as individuals, we can have several like buying a house in the countryside once we retire or building a commendable retirement corpus for our sunset years. All these goals combined will produce a different monthly SIP sum and only then investors will be able to build a solid financial plan surrounding it.

Now to be honest, at the current stage in life one may not have enough income to take care of their monthly spending as well as have a SIP sum to take care of all their long term financial goals. However, that does not mean one must feel dejected and not start their mutual fund SIP journey at all. Every year as our income increases, we can focus on keeping our expenses to a minimum and invest the rest of the money in SIP. This way you will be able to top-up your SIP sum every 12 months and give your financial plan a boost.

One can keep a target of increasing their SIP investments by 10% every year which will automatically ease the burden to achieving various long term financial goals. Every individual will have a different SIP amount and hence, one must set realistic goals to identify the right monthly SIP sum ideal for them.

Mutual fund investments are no more just a thing for old and seasoned investors. These days, a lot of young investors are considering these market linked schemes as well. The reason behind this is that they can invest small sums regularly in any mutual fund scheme via a Systematic Investment Plan. A lot of investors are becoming aware of the dynamics of SIP investments. The fact that SIP investments are able to create a commendable corpus in the long run only speaks volumes of the fact that it has become a favorite investment tool among the larger audience. However, new investors often end up making some rookie mistakes before starting their SIP mutual fund investments.

If you too are planning on making your first every SIP mutual fund investment, these are the common mistakes that you should avoid:

Investing in a low NAV mutual fund scheme

For some reason, a lot of investors believe that if they invest in a mutual fund that has a low NAV (Net Asset Value), they may be able to generate higher returns in the long run. However, how a mutual fund scheme performs has got nothing to do with its NAV. In fact, the only thing that matters is that fund management that is handling the mutual fund as it is their expertise that allows a fund to either perform or underperform.

Investing based on past performance

Several young investors choose to start a SIP in a mutual fund scheme based on how the fund has given returns in the past. Although it is a good idea to consider a fund with a proven track record, investors must understand that the past performance of a mutual fund scheme may or may not always determine its current or future performance.

Opting for growth plan over dividend plan

Rookie investors feel that they can earn regular returns by opting for a dividend plan but they are missing out on creating long term wealth. They do not realize that the dividends which the fund house offers are taken from the fund’s AUM (Asset Under Management) and in the long run, it can lower a mutual fund’s Net Asset Value. On the other hand, in the growth plan, the interest earned by the mutual fund scheme is reinvested back in the fund. This will not only lead to a rise in the mutual fund’s NAV but will also compound the investor’s sum and allow them to earn better returns in the long haul.

Stopping SIPs midway when the markets are bearish

Several mutual fund investors commence their SIP journey with enthusiasm but are often seen backing out midway. They fear that since the markets have turned bearish, their portfolio will underperform, and they may face losses. However, investors must see this as an investment opportunity, and instead of stopping their SIP investments, top-up their monthly SIP sum. When the markets are underperforming, most mutual fund NAVs drop and investors can buy more units at this point in time. When the markets gain momentum, the dropped NAV value will correct itself and so will the value of the once undervalued units. This concept of buying more units when the NAV is low and fewer units when the NAV is high is referred to as rupee cost averaging and can help an individual buy more units in the long run.

Before starting a SIP in a mutual fund scheme, investors can compare their performance to their peers and consider a fund with a low expense ratio.

Forex trading has become one of the most important and popular online businesses that provide huge profits. Each day more than 4 trillion transactions are taking place at one of the most liquid financial markets globally, the Forex market.

People who are into Foreign exchange trading are constantly trying to find new ways to improve their trading skills and increase their daily income. Improving knowledge is one of the critical elements that make one Forex trader stand out from the other.

However, if someone really wants to make a long-term and successful trading career, he must know why a good Forex broker is crucial for that. Let’s get started with how you can spot one reliable and quality broker for your trading business.

Forex broker review will give you all the relevant information.

If you want to get all the relevant information about a specific Forex broker, you should read reviews. One particular Brokeragea broker review is an excellent example of what a quality Forex broker offers his clients.

You’ll get to know general information, including info about the trading platform, accounts, brokerage’s trading products, conditions, funds trading and security, customer service, etc. With this information, you’ll get to know whether it’s an excellent financial company for you or not.

Regulation of a broker is priority number one.

It would be beneficial to remember that your preferred Forex broker needs to be regulated by regulatory agencies. When it comes to Europe, its Forex regulations are under the MiFID II guidelines. Different European countries have other regulatory bodies.

So, in Spain, we have the National Securities Market Commission; in Switzerland, we have the Swiss Financial Market Supervisory Authority in Ireland, its Central bank of Ireland, the German Forex regulatory agency is called the Federal Financial Supervisory Authority, and so on.

In the United States, we are strictly speaking of two relevant regulatory bodies. They are the National Futures Association (NFA) and the Commodity Futures Trading Commission (CFTC).

The main reason for picking a quality Forex broker

If you wonder why it is mandatory to pick a quality Forex broker for your trading business, the answer is straightforward. On the internet, you can find many suspicious and fraudulent brokers that promise many things but don’t provide half of it.

As a severe trader interested in a long-term, prosperous career, you would like to secure your transactions and money. Also, it’s important to always count on the reliable 24hours customer support of your broker, as well as their great account features that will help you achieve your biggest trading goals!

Bottom Line

Since there are many unregulated and shady financial companies out there, make sure that you research your preferred broker properly before making the final decision.

It’s mandatory that a regulatory agency regulates your broker, that it has a 24 hours available

customer support, that its account features match your needs, and that you can improve your trading skills with the help of their educational material.

Don’t be lazy, and make sure that you’d read all of the vital information from reviews and brokerage forums that can help you decide which broker is right for you! Good luck!