Dealing with Mortgage Payment Difficulties & Fort McMurray fire disaster

Devin Cristo and Wes Will are Licensed Mortgage Associates with Your Mortgage Link, Brokerage License #315794. Your Mortgage Link is a Saskatchewan-based brokerage operation, with offices in Saskatoon and Regina, competing in the wholesale mortgage market Canada wide. Our goal is to offer clients a broad range of mortgage products, and create competition between many of Canada’s top lenders.

Mortgage Payment Difficulties

When unforeseen financial circumstances impact your ability to make regular mortgage payments, or disaster strikes, it’s important for you to take quick action. With early intervention, cooperation, and a well executed plan, you can work together with your mortgage professional to find a solution to your financial difficulties.

 

 

Dealing with Mortgage Payment Difficulties

What Can We Do to Help?

If you find yourself facing financial difficulties, as a result of job loss, family income reduction, or for other reasons, it can be an overwhelming experience leaving you feeling uncomfortable and unsure of what to do. By following these three simple steps, you can make a big difference in resolving your financial difficulties.

1. Talk to your mortgage professional

  • To increase the chance of successfully managing your financial situation through early intervention, call your mortgage professional at the first sign of financial difficulty;
  • Ask the mortgage professional about information on the options available for managing your financial situation; and
  • Keep the mortgage professional informed as circumstances evolve.

2. Clarify the financial picture

In order to help your mortgage professional fully understand your financial situation, before meeting with them, prepare a detailed list of financial obligations including any credit cards, loans, household bills with the amounts owing and their due dates. Be sure to include information about your current income, savings accounts, investments, and any other assets.

3. Stay informed

The more information you have at your disposal on managing your finances, the easier it will be to make the right decisions.

Take Charge of Your Debts is an online tool from the Government of Canada that is designed to help borrowers like you understand debt problems, and includes information on making a budget, budget counselling, collection agencies, credit, and credit repair. To view this tool, log on to www.ic.gc.ca (Industry Canada) and search for “Take Charge of Your Debts”.

How Can Your Mortgage Now and CMHC Help?

Your mortgage professional wants to establish and maintain a positive relationship with you over the long term, and is fully trained and equipped with the tools to help you deal with the temporary financial setbacks that you may be facing.

For mortgages insured by Canada Mortgage and Housing Corporation (CMHC), CMHC provides mortgage professionals with tools and the flexibility to make timely decisions when working with you to find a solution to your unique financial situation. These tools include:

  • Converting a variable interest rate mortgage to a fixed interest rate mortgage in order to protect you from a sudden interest rate increase, should one occur.
  • Offering a temporary short-term payment deferral. Your mortgage professional may be prepared to offer greater payment flexibilities, particularly if previous lump sum prepayments have been made, or if you have previously chosen an accelerated payment schedule.
  • Extending the original repayment period (amortization) in order to lower your monthly mortgage payments.
  • Adding any missed payments (arrears) to the mortgage balance and spreading them over the remaining mortgage repayment period.
  • Offering a special payment arrangement unique to your particular financial situation.

CMHC is also willing to consider other alternatives proposed by the mortgage professional to resolve or avoid mortgage payment default. In every case, the options available will depend upon your individual financial circumstances.

 

 CMHC Tools to Support Canadians Affected by Fires in Fort McMurray and Area

Mortgage Payment Difficulties

CMHC joins Canadians in expressing our concern for the people of Fort McMurray and the surrounding area that are dealing with devastating forest fires.

As residents continue to deal with the effects, CMHC wishes to remind mortgage professionals that we can help you assist homeowners that may be affected by these unfortunate events. and their impending Mortgage Payment Difficulties.

For borrowers with CMHC-insured mortgage loans that are affected by the fires and who may require special arrangements to meet their mortgage payment obligations, CMHC offers Approved Lenders a series of default management tools including:

o        Deferral of payment
o        Re-amortization of the loan, to result in lower payments
o        Capitalization of outstanding interest arrears and other eligible expenses
o        Special payment arrangements
o        A combination of the above

Approved Lenders have the flexibility to make these special arrangements quickly and without CMHC approval provided that they retain a documented analysis of the borrower’s financial situation on file. Approved Lenders can refer to the CMHC Homeowner Default Management Guide for complete details on CMHC’s default management program. Please find attached a flyer providing a summary of these arrangements.

Approved Lenders are reminded that properties must be adequately protected by standard insured perils and that any damage exceeding $5,000 should be reported to the CMHC Claim Payment Centre.

CMHC recognizes that homeowners affected by the fires may experience some financial hardship due to income shortages resulting from temporary evacuations or due to the need to rebuild or repair their homes. CMHC encourages homeowners with CMHC-insured mortgages to contact their financial institution at the first signs of financial difficulty to discuss their specific situation. 

To help you share information with any of your clients that may be affected, please also find attached CMHC’s “Dealing with Mortgage Payment Difficulties” factsheet. 

CMHC’s Default Management Tool Selector can also help lenders to determine what CMHC default management tools are most appropriate given the borrower’s circumstances. CMHC also offers comprehensive training to Approved Lenders covering CMHC’s default management tools and more. If you are interested in obtaining training, please contact your CMHC Account Manager, Client Relations.

CMHC’s Default Management and Claim Specialists are also available to assist you at any time, including before a default occurs and during early stages of payment delinquency. The Specialists have the expertise to help you manage unusual or complex default situations. Contact the Claim Payment Centre, Monday to Friday at 1-866-358-9999 or by email at cpc@cmhc.ca, to speak with a Specialist.
You can work with confidence, knowing that you are supported by an experienced and informed mortgage loan insurance provider in the Canadian housing market.

Do not hesitate to contact me if you have any questions or require assistance.

CMHC is Canada’s national housing agency. For over 65 years CMHC has shared a wealth of knowledge and housing expertise to help create an informed and reassured homeownership experience for Canadians.

Sarah’s Your Mortgage Now testimonial

Devin Cristo and Wes Will Your Mortgage Link, Brokerage License #315794. Your Mortgage Link is a Saskatchewan based brokerage operation, with offices in Saskatoon and Regina, competing in the wholesale mortgage market Canada wide. Our goal is to offer clients a broad range of mortgage products, and create competition between many of Canada’s top lenders. More than anything we want to make your mortgage experience as stress free and easy as possible. We are never happier than when are clients share that we achieved that … as in the testimonial below.

testimonial

Your Mortgage Now Testimonial from Sarah

“Going through a divorce is a stressful, emotionally stunning time. Thinking about all the ins and outs of daily life not to mention the big picture items such as mortgage, bills, children’s care and expenses that accumulate with legal fees is overwhelming and pressure-filled.  It is not insurmountable however when you have the right people in your corner, working with you, being patient with you, and providing you as much guidance as they can as you navigate through the waters.  Devin and his team have gone above and beyond for someone like me.  I felt respected and listened to at all times, and my concerns were real.  I never felt rushed and I was encouraged to ask questions when I needed more explanation.  I felt cared about and for.  When the time came for some excitement and I wanted to remain optimistically reserved I was granted the time to smile as they also felt excited for me.  Devin is a kind, patient, and heartfelt businessman.  I am grateful for the support through what I know to be one the hardest things to go through in this lifetime.  I have a new mortgage and my smiles exist and I feel safe and secure for myself and my children.  Hard work is ahead of me but with this kind of professional care I know I am not alone and that has made the world of difference.  For all people going through divorce I recommend this team from the bottom of my heart.  ” 

CMHC Calls Out Real Estate Markets for Signs of Overvaluation

Devin Cristo and Wes Will are Your Mortgage Link, Brokerage License #315794. Your Mortgage Link is a Saskatchewan based brokerage operation, with offices in Saskatoon and Regina, competing in the wholesale mortgage market Canada wide. Our goal is to offer clients a broad range of mortgage products, and create competition between many of Canada’s top lenders.Real Estate Overvaluation

CMHC

The Crown Corporation, which monitors the housing market in the country, is coming around to the view that there may be some overvaluation and overbuilding in some Canadian cities.

Canada Mortgage and Housing Corp. said Wednesday that overvaluation cReal Estate Overvaluationan be “detected” in nine of the 15 cities it monitors with overbuilding recorded in seven.

“While we see weak evidence of problematic conditions for Canada, we do detect moderate evidence of overvaluation. This means that house prices are higher than levels that can be supported by fundamental factors such as income growth and population growth,” said Bob Dugan, chief economist with CMHC.

CMHC’s valuation is part of its quarterly Housing Market Assessment, something the Crown Corporation calls an early warning system, alerting Canadians to areas of concern developing in our housing markets so that they may take action in a way that promotes market stability.

Real Estate OvervaluationSince its last assessment, CMHC added Vancouver, Hamilton, and Saskatoon to cities where housing prices may be overvalued. The averaged detached home in metro Vancouver is almost $1.8 million today and prices are rising about 23 per cent year over year in Canada’s most expensive city for home ownership.

The Crown Corporation says there “strong evidence of problematic conditions” in the overall market for Toronto, Calgary, Saskatoon and Regina. Toronto’s issues are price acceleration and overvaluation. In Calgary, Saskatoon and Regina, the issue is a combination of overvaluation and overbuilding.

CMHC defines problematic conditions as imbalances in the housing market that occur when overbuilding, overvaluation, overheating and price acceleration, or combinations of those issues exceed historical norms.

Your Mortgage Now Saskatoon discloses Mortgage Costs

Devin Cristo and Wes Will with Your Mortgage Link, Brokerage License #315794. Your Mortgage Link is a Saskatchewan based brokerage operation, with offices in Saskatoon and Regina, competing in the wholesale mortgage market Canada wide. Our goal is to offer clients a broad range of mortgage products, and create competition between many of Canada’s top lenders.

MORTGAGE COSTS

mortgage costs
Over and above your down payment, there are always last-minute costs such as taxes, legal fees, appraisal fees, moving expenses, and house insurance to pay before you are finally a new home owner.

These are known as “closing costs”, and there are some that you simply cannot avoid or lessen, as they are legally required and often fixed at a particular rate or charge. The time to budget for those “end” expenses is now. You must be prepared to pay most, and perhaps all, of the following costs.

Property Purchase Transfer Tax

Some Provincial Governments impose a Property Purchase Transfer Tax (PPTT) which must be paid when a property is legally transferred to a new owner. Each Province has there own formula.

Taxes

If you are purchasing a new home, you may be subject to GST/HST on the purchase price. Most Provinces will reduce the GST/HST if the purchase price is under a certain threshold. Check your Provincial Government Web Page for details.

Legal Fees

The transfer of property ownership fro the seller to the buyer must be recorded in the Land Title Office. Only a lawyer or notary can act on your behalf during the completion of your purchase. Legal fees for this service typically include a registration fee, disbursements, and a fee to prepare and register the mortgage documents.

Property Tax Adjustment

Of the current owners have already paid the full year’s property taxers to the municipality, you will have to reimburse them for your share of the year’s taxes.

home-inspection

Home Inspection Fee

A property inspection includes a check of all the major components of a building – roof, foundation, insulation, plumbing, heating, and electrical systems are all properly tested and examined. Not only do inspectors catch things you may have missed, but they also provide a detailed, written inspection report. CIBC will pay up to $500 for home inspections in most places in Saskatchewan.

Appraisal Fee

Lending institutions require an appraisal of the property before giving you your mortgage funds; it will be your responsibility to pay the appraiser’s fee.

Title Insurance

The lending institutions may also require Title Insurance (which has now replaced a Survey Certificate in most cases) to formally establish the boundaries of the property and to ensure that all buildings are within those boundaries.

Mortgage Default Insurance

A high ratio mortgage allows borrowing more than 80% of the purchase price of the new home. In most cases, the premium is added to the mortgage amount, however if you can pay the premium upfront, do so now – it could save you even more later.

Life and Disability Insurance

As you take on any new debt, you should always consider your insurance protection needs, especially if you have a young family. You could purchase protection from your lender, however in most cases you would be better off to speak to an insurance agent/broker.

Fire Insurance

The mortgage lender will insist that you purchase an insurance policy which guarantees that, in the event of fire, the lender will receive the balance owing on the mortgage before you receive any insurance proceeds.

APPLY ONLINE NOW or call us today!

Wes Will Mortgage Broker Devin Cristo Mortgage Broker

Welcome to our new Your Mortgage Now Saskatoon website

A NEW WEBSITE FOR YOUR MORTGAGE NOW!

Devin, Wes, and the Your Mortgage now Saskatoon mortgage team are thrilled to launch our new website to the World.

The Your Mortgage Now website

We wanted to create a new website that is consumer-focused, a resource, and a one-stop-shop for all your mortgage needs.

Please check out the following new and improved features.

  • APPLY NOW  – No need to wait till office hours, apply for your mortgage from the comfort of your sofa!
  • MORTGAGE NEWS   – Our new simple to search resource library means all the info you need to do your research is right there and easy to find!
  • MORTGAGE RESOURCES  – A library of local mortgage and real estate professionals and a list of our lenders. All in one place for your convenience!
  • MORTGAGE CALCULATOR – On our home page – find out approximately what your down payment will be with our simple and helpful mortgage calculator.

 

Wes Will Mortgage Broker Devin Cristo Mortgage Broker Tanya Shar Mortgage associate

 

Please let us know how you like the new look, it was designed and built for us by Trusted Marketing Services and we think it reflects our personality and is a great resource for Saskatoon and the area!

Your Mortgage Now website

 

 

5 Tips to Become Mortgage-Free Faster!

Your Mortgage Now shares 5 Tips to Become Mortgage-Free Faster

Budget for it first.

There are a number of strategies to help homeowners pay off mortgages quicker; all involve paying more money.

Your first step should be to determine if you have the flexibility in your budget to put more money toward your mortgage.

Balance everything – You want to be setting yourself up for a strong financial future by putting money away for things like your retirement and your kids’ education.

Accelerate your payments.

If you do have the extra budget room, consider adjusting your payment plan.

For example, if you go on a bi-weekly accelerated schedule, making a payment every 14 days, instead of twice a month, you’ll have made the equivalent of 26 payments, by the end of the year.

Smaller, more frequent payments will reduce your interest costs and get you mortgage-free faster. If you tie it in to your payroll, you don’t even miss it.

Increase your monthly payments.

Most financial institutions let homeowners make additional mortgage payments alongside their regular monthly payments.

Depending on the lender, a homeowner may be allowed to pay between 10 to 100 per cent of the mortgage payment and have it go directly toward paying down the principal, not the interest.

Make a lump sum payment.

Say you get a bonus at work or receive an inheritance – putting a chunk of that windfall toward your mortgage can make a difference.

Most lenders let clients pay lump sums between 10 to 20 per cent of the original mortgage, or the remaining balance. The full amount can be paid in one go or it can be made in instalments.

(Note: the lump sum contribution is over and above the amount you are allowed to contribute in additional bi-weekly payments.)

Reduce your amortization.

The principal-to-interest ratio on a mortgage leans more heavily toward interest in the first part of the mortgage term.

If you’re taking a shorter amortization, you’re tipping the scale a little bit so that a bigger portion of your payment is going towards your principal for that portion.

The strategies outlined earlier – making accelerated, additional and lump sum payments – can effectively reduce your amortization period, while still giving you financial flexibility.

 

Mortgage Payment Frequency Options

When it comes to deciding how often you’d like to make your regular mortgage payments, you can choose which mortgage payment frequency option will best benefit you. You have the option to synchronize your mortgage payments with your pay schedule. In Canada, you can choose from five different mortgage payment options: monthly, bi-weekly, accelerated bi-weekly, or accelerated weekly. Since most employees get paid bi-weekly, this schedule option is the most popular.
Some payment frequencies actually accelerate your mortgage repayment allowing you to reduce the total amount of interest you pay over the life of your mortgage. Choosing an accelerated payment also gets you out of mortgage debt years sooner.

What Are Your Options?

Monthly Mortgage Payment
A monthly mortgage payment is when your mortgage payment is withdrawn from your bank account on the same day of every month (i.e. on the 1st). With a monthly mortgage payment, you make 12 payments per year.

Bi-weekly Mortgage Payment
A bi-weekly mortgage payment is when your monthly mortgage payment is multiplied by 12 months and divided by the 26 pay periods in a year. With a bi-weekly mortgage payment, you make 26 payments per year.

Accelerated Bi-weekly Mortgage Payment
An accelerated bi-weekly mortgage payment is when your monthly mortgage payment is divided by two and the amount is withdrawn from your bank account every two weeks. With an accelerated bi-weekly mortgage payment, you still make 26 payments per year but the payment amount is slightly more than a regular bi-weekly mortgage payment.

Weekly Mortgage Payment
A weekly mortgage payment is when your monthly mortgage payment is multiplied by 12 months and divided by the 52 weeks in a year. With a weekly mortgage payment, you make 52 payments per year.

Accelerated Weekly Mortgage Payment
An accelerated weekly mortgage payment is when your monthly mortgage payment is divided by four and the amount is withdrawn from your bank account every week. With an accelerated weekly mortgage payment, you still make 52 payments per year but the payment amount is slightly more than a regular weekly mortgage payment.

The Benefit of Accelerated Payments
The one major difference between regular and accelerated payments is how the payment is calculated. With an accelerated payment option, you end up making roughly one extra payment a year. It’ll cost you a little more on a monthly basis, but will save you thousands in interest and help you pay off your mortgage even sooner.

If you have any questions regarding this topic, please give us a all today at (306) 244-7755 or contact us today!

Are You Asking Your Mortgage Associate the Right Questions?

Your home will likely be the single largest purchase you make and will be a part of your life for the next 25+ years. Decisions you make now could affect you for years to come, which is why it is imperative that you know what to look for in a mortgage associate and understand the process that goes through with applying for a mortgage. Don’t be afraid to ask questions. The more you get to know your mortgage associate beforehand, the better.

Ask your friends and family for recommendations.

If they own a home, your friends and family members have been through the very same process. Make sure you ask the opinion of someone you consider a reliable source.

Do your own research over the Internet and by phone.

Don’t just trust the recommendations of your family and friends. Ask questions about deals and conditions, and don’t be afraid to compare mortgages rates offered by different providers. Do your homework.

Take notes.

The notes you take will come in handy when making your final decision. Take notes that include names, dates, and offer details.

QUESTIONS TO ASK YOUR MORTGAGE ASSOCIATE

How long have you been in business?

Although there’s nothing wrong with working with someone who’s new to the business, you will probably want to work with someone who has some experience under the belt. Does this associate have an office? Is it buzzing with business, or is it quiet and conservative?

What kind of education or licensing do you have?

All mortgage associates in Canada require a license in order to practice. Some are members of associations, while others work from private practices.

What do you base your recommendations on?

Remember that your mortgage associate works for the lender. It is their responsibility to deliver good, credit-worthy borrowers, like you. If they recommend a certain lender for you, ask why. You want to be sure that they’re making recommendations for the right reasons by choosing a lender and rate that will fit your file.

Make sure to Review your Mortgage Commitment from the Lender

If your mortgage associate has promised you a specific rate, review your Lender’s Mortgage Commitment to ensure the discussed rate is locked in.

Are you affiliated with any mortgage associations?

Membership to some mortgage associations can sometimes be indicative of the associate’s oath to offer the best loan options available, regardless of commission. Membership to some associations requires additional education and examinations. Also, those mortgage associates who do belong to professional organizations may also be listed in a directory.

Can you provide me with references?

Even though your mortgage associate will most likely come armed with testimonials from past clients, there is no way of determining how old those testimonials are. Instead ask them for the names of Realtors with whom they’ve worked.

How often will we be in contact?

Although this might seem like an unimportant question, it could be the difference between a painful experience and a smooth transaction. Lenders might ask for several documents at different times during the process. Whether they need proof on down payment resources, letters from employers or identification, your mortgage associate will notify you once the lender has asked for certain documents so you can provide them.

The combination of thorough research and proper inquiry should help you narrow down your pool of potential loan providers. Trust your gut and only make your selection if you are fully comfortable with it.

For our most recent Rate Updates, visit www.www.yourmortgagenow.ca or subscribe to our monthly Newsletter

Good Luck! Call us today if you have any questions : (306) 244-7755

Why Should a Seller Involve a Mortgage Associate into the Home Selling Equation?

 

One thing that many Realtors® have learned is the importance of having a team of professionals to facilitate a smooth transaction for their sellers. Having a Mortgage Associate on the team can make available the following services to you as a home seller and all for FREE:

 

      • Mortgage Associates can screen all potential buyers. Today’s mortgage world is a rapidly changing environment with programs and requirements changing regularly. A good Mortgage Associate is up-to-date on all of the current guidelines and can find the best solutions for clients. As a seller you need to know that when you accept an offer, the buyer will actually be able to close.
      • Financing is a very important aspect of getting a home sold. Mortgage Associates can assist with marketing flyers, legal and appraisal fees, and unique mortgage strategies to differentiate your home. A good Mortgage Associate has the ability to help increase the number of people for whom your home might be a fit. More prospects equal higher sales prices.
      • Mortgage Associates will also ensure that you are able to clear the title of your home should it sell. Your property value may have declined since you originally purchased your property or you financed with either 100% financing or perhaps a 40 year amortization. Potentially there may not be sufficient proceeds from the sale of your property to pay the penalties or fees for an early payout of your mortgage. This is something you should know before you list your home. A Mortgage Associate can assist you with calculating any penalties and recommending the right strategies to sell your home with no last minute surprises to ensure that you can provide a clear title to the buyer.
      • And finally, your Mortgage Associate knows that most home sellers become home buyers. They will assist you with a pre-approval so you can move into your next home with ease.

 

Both your Realtor® and Mortgage Associate on your team are committed to the highest level of advice and integrity. Any questions, just give us a call at (306) 244-7755 or email to devinandwes@yourmortgagelink.ca.
– Courtesy of The KCM Blog

What do I need to apply for a Mortgage in Saskatoon?

 

If you are planning to get a mortgage in the near future, it is best to be prepared.  Being prepared and having the right documents and information ready to present to your Mortgage Associate when you first meet can save tons of time, speed up the process and make things go smoothly.
The following is a summary of what lenders require depending on what type of job you have, keep in mind, we may need more information depending on your circumstance:
Salaried Employees
• Job Letter – Confirmation of your employment needs to be on company letterhead, signed by the appropriate individual confirming the position being held and your wage. If you are a recent hire, the job letter should confirm that probation period has been passed. Bonuses, car allowances and other forms of remuneration should be mentioned if applicable.
• Paystubs – Most recent paystub that shows your year-to-date earnings.
Hourly Employees
• Job Letter – Verification is made on company letterhead, signed by the appropriate individual confirming the position being held and wage. If you are a recent hire, the job letter should confirm that probation period has been passed. Bonuses, car allowances and other forms of remuneration should be mentioned if applicable.
• Paystubs – Most recent paystub that shows your year-to-date earnings.
• T4’s
Commission Income 

• T4’s and/or Personal Tax Returns (T1 Generals) from the current year and the previous year.
• Job Letter – Verification is made on company letterhead, signed by the appropriate individual confirming the position being held and wage. If you are a recent hire, the job letter should confirm that probation period has been passed. Bonuses, car allowances and other forms of remuneration should be mentioned if applicable.
Self Employed 

• Financial Statements
• Notice of Assessments (NOA) – to confirm no taxes owing.
• Personal Tax Returns (T1 Generals) from the current year and the previous year.
There are 4 main factors to qualify for a mortgage; stable income, a good credit history, making a sound choice on the property you are purchasing and how much (if any) of a down payment you have.
 
• Stable Income:  most lenders will require a Letter of Employment confirmation as well as 2 recent paystubs. They may also need the last 2 years of NOA’s (Notice of Assessments).
• Credit History: is a piece of information that is always reviewed by the lenders. We always pull a credit history when you apply for a mortgage or seek a preapproval so that we can determine which programs will best suit your situation.
• Property: choices also impact the mortgage qualifying process, as the real estate is the lender’s security – if for some reason – you are unable to repay the mortgage.
• Down Payment: are not always required as there are mortgage programs that provide cash back incentives for qualified purchasers. If you have no down payment, you generally will still need to have some cash to put down for your real estate purchase deposit and for closing costs
If you have any questions, please give our office a call! (306) 244-7755!