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.

 

 

Sarah’s Your Mortgage Now testimonial

Devin Cristo and Wes Will are Trusted Saskatoon 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. 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.  ” 

Your Mortgage Now Saskatoon discloses Mortgage Costs

Devin Cristo and Wes Will are Trusted Saskatoon 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 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 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 area!

Your Mortgage Now website

 

 

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

What to do with your TFSA?

 

What to do with your TFSA

For you savvy investors out there — or those planning on investing this year– now is a great time to think about your TFSA contribution for 2015. As of January 1, eligible Canadians (residents over 18) can contribute an additional $5,500 to their TFSAs. That brings the total contribution room to $36,500.

The Tax Free Savings Account (TFSA) is a fantastic way to save to achieve your financial goals in the future. However, only 19% of Canadians are aware of TFSA contribution limits, and only 11% of Canadians could correctly identify the investment types eligible to be held in a TFSA.

A Simple Introduction To Tax Free Savings Accounts
The TFSA was created in 2009 as another investment vehicle to help Canadians save. The money you deposit into the account allows you to earn interest, dividends, and capital gains tax free! That’s huge because taxes can quickly eat up your hard earned investment returns.

Let’s highlight a few key rules…

  • Unlike a RRSP, TFSA contributions are not tax-deductible but the contributions and the investment earnings are exempt from tax upon withdrawal.
  • Do not over contribute! You are liable to a tax of 1% on your highest excess TFSA amount in that month. That cost can quickly get expensive, so be prudent when depositing. You can have more than one TFSA account at two different financial institutions, but be sure to not go over the total limit.
  • If you withdraw money, you must wait until the following calendar year to recontribute.
  • You never lose your contribution room if you miss a year. So for those of you who haven’t opened one yet and have been living in Canada, start making those deposits!
  • Remember to declare a beneficiary to avoid estate issues at death.

What is the difference between a TFSA and RRSP?

  • An RRSP is primarily intended for retirement savings. Tax assistance provided by a TFSA complements that provided through RRSPs.
  • RRSP contributions are tax-deductible while RRSP withdrawals are added to income and taxed at regular rates.
  • Unlike an RRSP, which must be converted to a retirement income vehicle at age 71, a TFSA does not have any minimum withdrawal requirement.
  • There is no TFSA spousal plan. Individuals can provide funds to their spouse or common-law partner to invest in their TFSA, up to the spouse’s or common-law partner’s available room, and the income earned on the contributed amount is generally not attributed back to the spouse or partner who provided the funds.

So, what can you do with your TFSA?

  • Use it to trade
    If you keep your TFSA in a high interest savings account (HISA), your returns will be anemic. To energize your TFSA, you need a more pro-active strategy – like trading.
  • Use it as a retirement fund
    We’re not saying to pull everything out of your RRSP—it’s still a great way to save for retirement. But TFSAs are becoming serious competition. They are especially important once you turn 71 when mandatory RRIF withdrawals kick in. If you’re over the $71,000 income threshold, you’ll possibly lose government income benefits.
    Since TFSA withdrawals are not taxed, you can use them to supplement your income without adding to your taxable income numbers.
  • Use it as your emergency fund
    Say your roof caves in or your car starts making that funny noise again, you’re going to need some access to cash. TFSAs are the best umbrella for the proverbial rainy day. You can withdraw as much or as little as you need to keep your budget balanced. And in the following year, you’ll be able to put any withdrawals back in. [Remember, the money in your TFSA is as liquid as the investments you hold. If you want to withdraw, you’ll have to factor in settlement time for the cash to appear in your account.]
  • Use it to pass on wealth
    TFSA beneficiary are two words your loved ones want you to know. Straight from the CRA’s rulebook: any money passed down to a beneficiary does not need to go through your estate. That means your family won’t get dinged on probate taxes from capital gains. If you can’t remember whether you designated a beneficiary when you opened your TFSA, check your account documentation.
  • Use it as collateral
    It’s nice to see a big number at the bottom of your statement but that money can do more than look pretty. Put it to work. Your TFSA can be used as collateral when you’re trying to secure a loan, like a mortgage. Better yet, you can build up your savings for the down payment of your home. Then build it up again to make larger payments on your mortgage.

Whatever you decide to use your TFSA towards, we can direct you to our network of Financial Advisors.

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

5 Benefits of Buying a Home in the Off-Season!

Spring and summer are commonly known as peak-season in Canada’s real estate market. But there are a number of benefits to purchasing in what is considered off-season too! From cost savings to enhanced convenience, here are five advantages of off-season house hunting and off-season home buying.

Buying a Home in the Off-Season

Perk #1: Highly motivated sellers

Winter sellers tend to be highly motivated and eager to sell their property quickly, particularly if they’ve listed just before or during the holiday season. This is a favourable time of year for buyers, in terms of encountering sellers who are receptive to negotiating on price and sales conditions.

Perk #2: Fewer bidding wars

Many parents would rather enroll their kids in a new school in September, not mid-year. You’ll have fewer competitors when you bid on a house that’s for sale during the off-season. You’ll encounter fewer fever-pitch multiple-offer scenarios, and be less likely to be outbid.

Perk #3: You’ll be able to see problems and negotiate solutions.

Does the roof leak? Are telltale icicles indicating attic heat loss? Is the basement carpet wet? Is the street around the house buried in snow because the municipal ploughs come here last? Are the living spaces drafty? Find out before you buy.

Check out a house midwinter and you’ll see what it’s like during the worst of our Canadian weather. No surprises here. And with motivated sellers and fewer potential buyers/competitors, you’re more likely to have the problem repaired outright, or to negotiate a repair credit into the sale price.

Perk #4: Less-busy real estate professionals

Almost every professional you deal with during your midwinter house hunting will be less time-stretched than during the peak season. From real estate agents to bank representatives and real estate lawyers, everyone will be seeing fewer clients. With fewer client needs to juggle, you can benefit from lightning fast response times, and faster than average turnarounds on paperwork and processing, from everyone you work with during the house hunting and homebuying process.

Perk #5: A smoother move

You can count on better service – and a better price – when you hire movers for a winter job. With fewer moves going on, you’re more likely to get your preferred date and time. By avoiding peak season, you’ll pay the lower off-season moving rates.

Although there are downsides to off-season buying (namely, fewer homes to choose from), the benefits are significant enough to make it a smart choice for many first-timers and experienced homebuyers alike.

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

Financial Preparation around Christmas from your Saskatoon Mortgage Brokers

As we close on the ‘spending season’ it’s a timely reminder to be aware of the potential financial damage that can occur if you rely on short term debt to fund it. There are far better ways to approach this spending then relying on your credit cards.

Consider a family, they have an existing mortgage of $300,000 and on average have around $300 a month left after all bills/ spending etc. In December/ January with travel, holiday accommodation, presents plus entertainment they will spend an extra $3500 in this period. If this is put on the credit card (assuming 20% interest), and it has a zero balance at this point, and paid off at $300 a month from January it will take 14 months to zero this balance. So there will still be money owing at next Christmas!

As this monthly credit card repayment is basically accounting for all their surplus money it also means they are operating very inefficiently. When you owe $300,000 on a mortgage it seems crazy to be throwing your extra money into paying off a $3,500 debt. Put it this way, paying an extra $300 a month on a 30 year mortgage of $300,000 will save you $135,000 in interest costs, if not more.

Adding the $3500 into your home loan would make an almost unnoticeable difference into your monthly payments, however the $300 a month extra in to your mortgage makes a world of difference. This festive season it will certainly pay to get money savvy.

If you have a mortgage it is very important to manage this debt well, a mortgage plus other short-term debt will ensure you are paying them for the next 25-30 years when there is no reason it could not be 15-20 years.

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

How To Calculate The Monthly Costs of Owning a Home

As your licensed mortgage associates, we want to ensure you are well prepared for home ownership. This includes the many monthly fees that many homeowners don’t see coming. Some of them, like taxes, may not be billed monthly, so do the calculations to break them down into monthly costs.

 

How To Calculate The Monthly Costs of Owning a Home.

The Mortgage Payment
For most home buyers, this is the largest monthly expense. The actual amount of the mortgage payment can vary widely since it is based on a number of variables, such as mortgage term or amortization.

Property Taxes
Property tax can be paid in two ways – remitted directly to the municipality by you, in which case you may be required to periodically show proof of payment to your financial institution; or paid as part of your monthly mortgage payment.

School Taxes
In some municipalities, these taxes are integrated into the property taxes. In others, they are collected separately and are payable in a single lump sum, usually due at the end of the current school year.

Utilities
As a home owner, you’ll be responsible for all utility bills including heating, gas, electricity, water, telephone and cable.

Maintenance and Upkeep
You will also have to cover the cost of painting, roof repairs, electrical and plumbing, walks and driveway, lawn care and snow removal. A well-maintained property helps to preserve your home’s market value, enhances the neighbourhood and, depending on the kind of renovations you make could add to the worth of your property.

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