Canadian Housing Market leading the way for economy to rebound

Buying a home is one of the most important and exciting steps in your life…. found the home you want now you need a mortgage. Deal with people who can offer you and your family the best options.  Devin Cristo and Wes Will of Your Mortgage Now are Saskatoon Mortgage Experts. We have many years of experience helping individuals and families by offering mortgages from a variety of lenders. Your Mortgage Now are Trusted Saskatoon Mortgage Brokers. In our latest article, we share the latest news and forecasts about the Canadian housing market.

Canadian Housing Market 2018 forecast

The Bank of Canada (BoC) announced at the end of April 2018, that after a weak economic performance in the first quarter of 2018, it is predicting a rebound for the economy in the coming months.

“GDP growth in the first quarter was weaker than the Bank had expected but should rebound in the second quarter, resulting in 2 percent average growth in the first half of 2018,” reads the BoC announcement.

The weak first quarter performance — which saw GDP growth fall sharply from 2.5 to 1.3 percent — has been widely attributed to a flagging housing market, as home sales dropped after the introduction of a new mortgage stress test on January 1.

“Slower economic growth in the first quarter primarily reflects weakness in two areas,” reads the Bank’s announcement. “Housing markets responded to new mortgage guidelines and other policy measures by pulling forward transactions in late 2017…Some of the weakness in housing…is expected to be unwound as 2018 progresses.”

According to BMO economist Benjamin Reitzes, the central bank’s more optimistic outlook for the second quarter reflects a belief that the housing market has adjusted to the new mortgage stress test, and will soon begin to recover.

“While Q1 GDP growth was cut sharply to 1.3 per cent…Q2 was introduced at a very solid 2.5 percent, suggesting that the BoC is looking for some stability in housing over the coming months, at a minimum,” he writes in a recent note.

Reitzes also agrees that a warmer housing market is likely this spring. “We’re looking for a similar rebound in Q2, so can’t argue with that,” he writes.”

It’s a sentiment echoed by Scotiabank economist Marc Desormeaux, who believes that the housing market is on its way to bottoming out, and will see a surge in activity later in the year.

“March’s uptick in home purchases [of 1.3 per cent] implies some bottoming out of sales activity, he writes, in a recent note. “Following the first quarter contraction, we anticipate a modest but broad-based recovery in sales activity [in the second quarter.]”

 

Deal with the Saskatoon Mortgage broker experts you can trust at Your Mortgage Now and be sure that you have looked at all of the options, and that you have the best mortgage products and the best mortgage rates to suit your needs.

They want this process to be as easy as possible for you. Run some numbers through their online calculators, and look through the resources that they offer on their website.

No time for an appointment?  No problem! You can apply online with Your Mortgage Now!

 

Original article: Buzzhomes- Sarah Niedoba

PST added onto CMHC Premiums as of August 2017

If you were on the fence about buying a house, do it before PST added onto CMHC!

 

Buying a home is one of the most important and exciting steps in your life…. found the home you want now you need a mortgage. Deal with people who can offer you and your family the best options.  Devin Cristo and Wes Will of Your Mortgage Now are Trusted Saskatoon Mortgage Experts and they have many years of experience helping individuals and families in Saskatoon and area by offering mortgages from a variety of lenders . Their latest article is about upcoming changes in August when PST added onto CMHC Premiums

PST added on CMHC Premiums

PST added onto Mortgage Insurance Premiums as of August 1st 2017

CMHC has recently advised us that there will be a 6% PST charge on all Mortgage Default insurance premiums (CMHC/GE/Canada Guaranty) as of August 2017.
CMHC will be required to collect 6% provincial sales tax (PST) on premiums and surcharges for full or partial loan advances made on or after August 1, 2017.
The Saskatchewan PST will be payable on premiums paid for all mortgage loan insurance transactions. The provincial sales tax cannot be added to the loan amount.

What does this mean for YOUR Mortgage?

If your possession date is on or after August 1/2017 there will be a 6% PST charge on your CMHC premium
An Example:
Purchase $450,000.00
Minimum 5% downpayment $22,500.00
=$427,500.00
+CMHC premium $17,100.00 (4% surcharge/minimum 5% down)
=Total mortgage $444,600.00
*TOTAL PST required at lawyers office payable=$1026.00 (6% of the CMHC premium)
This PST cannot be financed as part of the mortgage and is only applicable on insured mortgages (CMHC/GE/Canada Guaranty)

Looking to purchase a home soon?

Having the mortgage approval in place and taking possession before AUGUST 1st 2017 will save you this additional PST cost.

Deal with the Saskatoon mortgage brokers you can trust at Your Mortgage Now and be sure that you have looked at all of the options, and that you have the best mortgage products and the best mortgage rates to suit your needs.

 

 

Is Your Mortgage Up For Renewal?

 

MORTGAGE UP FOR RENEWAL

The biggest monthly expense for most Canadians is their mortgage payment.

Yet according to an Angus Reid survey, almost 27 per cent of households automatically renew their mortgages when the term is up instead of trying to find a better deal.

Mortgage renewal

If your mortgage is up for renewal within the next 6 months you may want to start thinking about what you’re going to do when your mortgage term ends. While you could renew with your current lender, you may be missing out on potential mortgage interest savings. It’s most often in your best interest to see what else is available for you before you sign on the dotted line of any mortgage commitment. This week, we want to highlight the mortgage options you have at renewal time so you can make an educated decision on how to proceed into the next term of your mortgage.

Renew your mortgage with same lender

If you don’t want to make any changes to your current mortgage amount or amortization, a simple mortgage renewal could be the solution for you. Your existing mortgage lender will usually send you an offer to renew near the end of your mortgage term or maybe sooner, depending on your lender. This document will contain the different mortgage term rate offerings for you to choose from. The benefit of renewing with your existing lender is, minimal paperwork is required as most often you are not required to re-qualify for the mortgage and there’s usually no costs involved unless your lender is charging you a renewal fee. This is ideal if you just want to sign on the dotted line, though the downside is you may not have initially been offered the best rate available. Often the rates are negotiable and you need to be aware you don’t get what you don’t ask for, however, before having the rate talk with your lender do some research first to determine what exactly the “best rates” are for your current financial position.

Renegotiate your mortgage with a different lender

If you’re okay with your existing mortgage amount though looking at making changes to the interest rate, or other terms your contract does not offer, you may want to look at the possibility of renegotiating your mortgage with a different lender. If you’re going to look at this option, be prepared to provide updated mortgage application details as well as supporting documentation to your new mortgage lender. As you don’t have a mortgage repayment history with this new lender they will want to re-qualify you for the mortgage which will also involve ordering your credit report. Usually a mortgage “switch” doesn’t involve any costs charged by the new lender as they will cover them, though there may be some small administration costs of $200-$300 charged by the lender you are leaving.

Refinance your mortgage

A refinance is perfect for you if you want to access your home equity at renewal time. Refinancing your mortgage allows you to restructure your mortgage amount, term, interest rate and amortization. If you have sufficient equity available this can allow you to pay off debt, invest, renovate, and more. There are some costs related to refinancing your mortgage which may include appraisal and legal fees, though they usually aren’t as high as what you paid when you originally purchased the home. Some lenders will also offer to pick up some of the costs to their refinance customers or offer some small cash back amounts to help reduce any out of pocket costs that need to be paid. You can also discuss other options including paying some of those costs from your refinance funds at closing time.

The next step is deciding on which of the 3 ways you want to access your equity at renewal time;

  1. Restructure your first mortgage to accommodate the extra funds you want out of your home.
  2. A second mortgage will allow you to leave your first mortgage details the same, but access equity by obtaining a 2nd mortgage behind your 1st one. Be careful though, as 2nd mortgages may come with higher rates and possibly fees.
  3. Or, if you qualify, a home equity line of credit could be the solution you’re looking for. It can be registered behind your first mortgage and offers a variable interest rate, an open term and interest only payments.

A lot can change during the term of your mortgage including income, assets, debts, and financial profile, among other things. It’s never a bad idea to give your mortgage a check-up at renewal time to ensure it aligns with the financial goals you are trying to achieve. Don’t be afraid to explore how you can make your mortgage work to your benefit by partnering with experienced mortgage professionals at YourMortgageNow.ca. Devin and Wes are Trusted Saskatoon‘s Mortgage Associates who specialize on the perfect financing solution for your unique financial situation.

Wes Will Mortgage Broker Devin Cristo Mortgage Broker

How Much is Enough to Save for a Mortgage?

When should you start to save for a mortgage?

The challenge today is saving for a sizable deposit for a down payment and closing costs. Credit scores are critical, but so are income and assets when you are applying for a mortgage.

Home buyers are required to have at least 5% deposit of the home purchase price, although if you don’t want to purchase default insurance, then you’ll need at least 20% for a conventional mortgage.

There are several benefits to waiting until you have enough for a down payment of 20% or more before you purchase a home.

  1. Reduced mortgage payments
    The more you put down on your home upfront, the smaller your mortgage payments will be. That could help your monthly budget. More important, you could save thousands of dollars in interest in the long run. For example, on a 30-year mortgage at 5% interest, putting an extra $10,000 into the down payment will save you $9,325 in interest payments over the life of the loan.
  2. Lower interest rate
    Lenders often offer better interest rates to borrowers with a lower loan-to-value ratio, or the percentage of the purchase price that you’re financing. An increase in your down payment lowers the ratio and reduces the risk to the lender that you will be unable to pay your full loan balance. Lower interest rates can also save you money over the life of the mortgage.
  3. No mortgage-insurance fees
    If you want to contribute a smaller down payment than the traditional 20%, most lenders require that you take out mortgage insurance. This insurance protects the lender in case you cannot pay your mortgage.
  4. Instant Equity Building
    A significant down payment builds instant equity in your home. A 20%t down payment immediately puts equity into a property when you purchase it.

So, if you’re a first-time home buyer, how do you save for a down payment?

As a first-time buyer, you’ve got other things to consider, including:

  • Your rental costs. (Are they higher or lower than your potential ownership costs?)
  • Alternative uses for your down payment money. (Can you get a better return by investing down payment funds elsewhere?)
  • The size of your emergency fund. (Home ownership comes with a laundry list of unexpected expenses.)
  • Your economic stability and future earning power.

There are several ways to piece together a bigger down payment. You can:

  • Cut your spending and reduce your credit card limits. You might want to consider asking your credit card company to reduce your overall limit as this will help boost the overall amount lenders will be willing to offer you.
  • Get rid of debit! Carrying high levels of debt will reduce the overall amount lenders will be willing to offer you for a mortgage. Demonstrate to the lenders that you have responsibly made repayments on your credit cards.
  • Sell old, unwanted items.
  • Tap into the bank of mom and dad. Gifts from parents get a lot of young people started as home owners.
  • Borrow from your RRSP under the Home Buyers’ Plan (HBP).
  • Apply tax refunds and bonuses.
  • Get rid of one car in a two-car household.
  • Postpone a vacation for 18 months or more.
  • Get a second job. Working a couple nights a week at a part-time job only puts extra cash in your account. It also decreases time and opportunity for you to go out and spend unnecessary money.
  • Use municipal first-time home buyer grants when applicable (like this one in Saskatoon).

There are ways we can help you plan your down payment. Give us a call today at (306) 244-7755 or visit www.www.yourmortgagenow.ca

Refinancing Your Mortgage with Home Equity

MORTGAGE REFINANCING 101 

Refinancing Your Mortgage with Home Equity

re financing mortgage saskatoon

With spring just around the corner you might be thinking about renovating the house, sprucing up the backyard or even purchasing your first cottage. Refinancing your mortgage may allow you to find the money that you need for these aspirations.

The first thing that you have to consider is how much equity has built up in your home since you started paying down your mortgage. Your home equity – your home’s value minus the balance of your mortgage – is available for you to withdraw and invest in a number of ways, including home renovations, additional real estate, post secondary education and much more. Has the property value increased? Decreased? You can obtain a realistic figure by getting a market evaluation on your home. By multiplying your current market value by 80% this should give you an idea of how much you would be able to borrow for your new project.

The second thing is to look at different options when it comes to realizing your goals and every individual situation is different. Some choices that a person can look at are:

  • a new mortgage (the amount of your existing balance plus the amount that you would like to borrow);

  • a home equity line of credit;

  • or a combination of a mortgage and line of credit.

The third step would be to sit down with a mortgage specialist and assess your different needs and that is why we are here to help you answer these important questions. So contact us today and we will help you come up with the best strategy for your lifestyle.

Do you have questions about refinancing your mortgage? Give us a call today at (306) 244-7755 or visit our website at www.www.yourmortgagenow.ca

6 Tips to Help Renew Your Mortgage

The biggest monthly expense for most Canadians is their mortgage payment. So
before you decide to renew with your current mortgage lender, take a look at these tips to help lower your payments come renewal time.

1. Get Started Early
Start shopping around for a better rate four to six months before your mortgage is up for renewal.
This is the longest lenders can guarantee a discounted rate. If your current lender’s rate rises, you have your guaranteed rate to fall back on.

2. Do Your Homework
Find out what other lenders are offering before you negotiate a lower rate from your bank. View our current rates at www.www.yourmortgagenow.ca

3. Never Accept the Bank’s Posted Rate
If you don’t ask for a better rate, you won’t get one. If you current lender has the best mortgage features, advice and policies, ask your bank to match a competitor’s lower rate.

4. Negotiate on other Available Options
The amortization period, the rate type (fixed or variable) and the flexibility of the payment schedule can also determine ways to lowering your costs, not just the interest rate.

5. You Can Change Lenders
A lot of people renew with their lender and don’t even think about switching to another one. You could be missing out on what other financial companies are offering, plus there is no penalty if you switch at renewal time.

6. Use a Mortgage Broker
If you don’t like negotiating and don’t have the time to research rates, a mortgage broker will do ALL the legwork for you — even without charging you anything, since they are paid a commission from the lenders.


Did You Know
Saving even half a percentage point on your mortgage rate can save you up to $10,000 over 25 years (based on a $150,000 mortgage).


If your mortgage is coming up for renewal in the new year or you have questions about your current mortgage, contact us today!

Things To Do Before You Renew Your Mortgage

If you have a mortgage coming up for renewal this year, it’s a good idea to check on a few details well in advance of your current term’s expiration date.

For example, determine whether you need to produce new documents to verify ownership before you get your new financing in place. An old property survey or condo agreement that is outdated and/or in need of correction may require official amendments before you can secure your new mortgage. Since such documents can take time, it’s wise to keep an updated file of all changes to your ownership status and have it ready when it’s time to renew.

Is your mortgage up for renew? Make sure to contact us to secure your low interest rate! (306) 244-7755 or devinandwes@www.yourmortgagenow.ca

Debt Consolidation With Your Mortgage

With the availability of credit, you may have a car loan, credit cards or other debt starting to mount, and maybe taking a toll on your budget. For some, it can be easy to max your credit card, get that new car loan, but then find it hard to keep your payments under control. You may want to consider increasing your mortgage to pay these debts out. This will not only reduce your monthly commitments, but also ease the strain on your monthly budget.
If you are thinking about consolidating other debts with your mortgage, you may have questions like:

  • Can you consolidate your current debts into your mortgage?
  • Will my current bank or lender allow me to do that?
  • What will be my monthly repayments on my increased mortgage?
  • Banks or lenders lend against the value of your home, do you have enough equity in your home to increase your mortgage to pay out those debts?

There are many options if you are thinking about consolidating your current debt into your mortgage. It is important to speak to a qualified Mortgage Broker to see which option suits your financial situation. A Mortgage Broker will look at your current bank or lender, and if that doesn’t suit, look at different banks and lenders they deal with, so they can explore many different options, and find one that suits you best.

What Type Of Debts Can You Consolidate With Your Mortgage?

All banks and lenders have different rules about what you can consolidate into your mortgage. It is important to get some information from your Mortgage Broker first, so you can learn what you can do, and then make an informed decision on what is the best option for you. Some of the types of debt you can consolidate are –

  • Credit Card Debt.
  • Car loans or personal loans.
  • Business Debt.
  • Tax Debt.
  • Investment Debt.

What Are The Advantages and Disadvantages Of Consolidating Other Debt With Your Mortgage?

Some advantages and disadvantages of consolidating your current debts with your mortgage may include –

Advantages

  • Your interest rate on your mortgage is more than likely cheaper than credit cards and other loans, saving you money.
  • You monthly commitments (repayments) may be reduced, helping your monthly budget out.
  • You may want to make a plan paying that debt down faster by consolidating it into your mortgage, and paying more than the minimum repayment, thus saving you money and interest charges.

Disadvantages

  • Although the your minimum monthly repayments may of been reduced, some of the debt in the longer term may cost you more money. For example: a car loan may of been taken over a 5 year loan term, but on your mortgage, even though the interest rate may be cheaper, your mortgage may be over a term of up to 25 years, therefore increasing the amount of actual interest you pay on the original car loan, as it is now paid over the remainder of your mortgage term.
  • Reduces the equity in your home. This may be an issue in the future, if you want to buy another home, investment property etc.
  • There maybe a fee to increase your mortgage or refinance your mortgage to another bank or lender.

It is important to talk to a Mortgage Broker , and determine what may be best for your financial situation before you make any decisions. This way you can learn the pro’s and con’s of consolidating other debts into your current mortgage, and make an informed decision.

Contact us today!

The 5 C’s of Credit

Applying for a mortgage can be a nerve-wracking experience when you’re not sure what to expect. Before you go looking for credit, take a few minutes to understand what lenders are looking for:

How might you stack up in a lender’s analysis of the five C’s of credit?

CAPACITY

Be prepared to show that you can afford your payments. The lender will look at your income from all sources, and compare that with your monthly financial obligations.

CAPITAL

Your downpayment demonstrates that you can save and accumulate assets, and that you are more likely to do all you can to keep up with your mortgage payments.

COLLATERAL

This is the lender’s assurance that the mortgaged property is marketable and can be re-sold to recover the investment.

CREDIT

Your habits in meeting your debt obligations will be evaluated. Do you consistently pay your debts on time?

CHARACTER

Are you sufficiently trustworthy to meet your obligations? Your education and work experience will be factors, along with length of time at your current residence and job.

Tips for Moving During the Holidays!

 

 

Moving during the holidays is not the most convenient time, but moving disrupts routines any time of the year. If you’re scheduled to move over the holidays, celebrating will definitely be different than other years. It may take some extra effort, but you can still make it memorable. No matter which end of the move it falls for you—in your old place or settling into the new house—here are some moving tips:

  • Acknowledge the sentiment. The holidays trigger all kinds of emotions for people and when you add moving to the mix, there’s a large emotional component to the process. Leaving your old home with its memories can be tough. If you have children, you want to acknowledge that they will be missing their “usual” holiday, but keep an upbeat attitude. You can set the tone.
  • Maintain some traditions. Involve the whole family in planning some holiday activities. If you normally bake cookies, find a way to make that happen even if you forgot where you packed the cookie sheets! Locate holiday decorations when packing your old house and be sure to set aside a box, including ornaments, wrapping paper, etc. If you normally put up a tree, make room for a small one with a few decorations.
  • Plan some outings. Plan some time away from those moving boxes. Drive around the neighborhood to look at lights and decorations, go to a holiday craft fair or have a holiday meal at a favorite restaurant. If you have extended family you’ll be leaving, make sure to schedule some time with them.
  • Confirm moving plans. Things get rushed and busy during the holiday season. People take vacations and may be hard to reach. Be sure to call and confirm your move date with the movers or rental truck company. Make sure your utility companies know when to turn off or turn on your utilities.

 

Don’t forget to sit down, take a few deep breaths and make time to enjoy the holidays!
Merry Christmas and Happy Holidays!
(306) 244-7755