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.

 

 

We answered your Saskatoon mortgage questions on Talk to the Experts!

Saskatoon mortgage questions

This latest show we are featuring is the TRUSTED SASKATOON PERSONAL FINANCE SHOW
All of the questions on the show have been submitted by our wonderful Trusted Saskatoon Facebook Fans and one lucky fans question was chosen by Brent to win the Prize package submitted by the 3 Trusted Businesses worth over $350

Your Mortgage Now : $100.00 gift certificate that can be used at any of the Trusted Saskatoon Partners!

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We had the opportunity to answer your mortgage questions on 650 CKOM Trusted Saskatoon’s Finance Show. Make sure to listen to our show below as we covered topics on Mortgage Renewals, Fixed VS Variable Rates, Mortgage Broker VS The Bank, Home Equity and Rental Properties. Those who asked us the questions were also drawn for some great prizes!

To read our answers, you may also visited the Trusted Saskatoon Blog.

We’d like to hear from you! Please feel free to contact us today about your home mortgage questions.

Devin Cristo & Wes Will are Trusted Saskatoon Mortgage Associates of YourMortgageNow.ca

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.

 

Devin Cristo & Wes Will are Trusted Saskatoon Mortgage Associates of YourMortgageNow.ca

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

What Comes First the Mortgage or the House?

Many people get it backwards. They shop for a home, and then make an emotional decision without knowing what they are able to afford. And then are surprised and disappointed to find out that they cannot get the financing. Thankfully, mortgage brokers do the homework for the applicant to see whether they have the ability to repay the loan while in the lifestyle they are accustomed to.

Something’s to consider about your lifestyle:

  • Are you single or a family of six? Costs for food and clothing alone are very different.
  • Do you take annual vacations?
  • How often do you like to eat out?
  • Are you involved in costly sporting activities?
  • Would you be willing to sacrifice these things for a bigger or nicer home?

Also take into consideration the following:

  • Do you have car payments?
  • Do you have to repay student loans?
  • How much do you owe on your credit cards?
  • Do you have bad debts?

Falling in love with a home without considering the REAL impact on your lifestyle is a recipe for unhappiness….either in re-adjusting to a “lesser” home or disappointment over the lack of vacations or entertainment.

Our advice is to focus on your financing. Find out what you can afford from a lender’s perspective, but then, spend some time considering the cash flow realities of your choice.

Additionally, we can advise you on ways to properly represent and transfer your assets, how to explain and document your income, as well as, assist you to get your optimum credit score. This process will help smooth out some of the bumps during the mortgage process, giving you the best change to the best mortgage rates available. All your prep-work will pay off in the end.

The choice is clear get the mortgage before the house!