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Your Mortgage Now your Trusted Saskatoon Mortgage Experts answer your mortgage questions

Buying a home is one of the most important and exciting steps in your life.... now that pesky financing! Deal with people who can offer you and your family the best options for you with Your Mortgage Now! Devin Cristo and Wes Will are your Saskatoon Mortgage Experts and they have years of experience helping individuals and families finance their dreams by offering mortgages from a variety of lenders for people from all walks of life.

They are your Trusted Saskatoon Mortgage Experts!

TrustedSaskatoon.com Talk to the ExpertsTrusted Finance Show - Questions for Your Mortgage Now:

Q:  Teresa Gagne:  My mortgage is will be up for renewal in December. I don't have a very high income and am concerned about being able to get another mortgage. What steps can I take now that will make things easier for me when I'm looking for a new mortgage? I haven't had my house evaluated but it is probably worth at least $40,000 more than when I bought it almost 5 years ago due the the market and improvements.

A: Great questions Teresa! Planning ahead is very important when it comes to your mortgage renewal.  Meeting with a mortgage broker/associate as fare out as 4 month prior to your renewal date, will ensure that your specific situation and needs are be reviewed and a plan can be put in place to ensure that your renewal/ refinance process can be seamless and still ensure you can get the best interest rate on the market which will minimize your interest costs.  For your specific situation setting up an appointment as soon as you are available will help to easy some of your concern and allow time to have that plan in place.

 

Q: M Liz Beisel: Overall what is the best option - fixed or variable mortgage? What is the optimum length of time to take out a mortgage?

A: Mortgages are very custom Liz and need to be tailored to fit.  Each person will have a different budget, life style and financial goals. Overall we finds that client that are new to the market tend to work well with a fixed rate product as it they are just locking down their budget, newer to their carrier and are unsure about other faucets of their lives so the fixed rate gives that stability.

Saying that the variable will normal be a lower rate than the fixed rate so that provides a reduction in payment and some initial interest saving as a result.  With the variable rate mortgage product a person just needs to be aware that the variable product is calculated and set at the bank of Canada prime interest + or – so if prime rate increases or decreases your mortgage interest rate will follow which and recalculated which will change your payment and the allocation for the principle and interest.

With reference to optimum length of time for your mortgage.  The maximum amortization for an insured mortgage (over 80% loan to value) is currently 25year and for mortgage that is conventional (less than 80% loan to value) it is currently 30 year.

As per the optimum mortgage term it something that is specific to a client’s individual future goal and plans.  You don’t want to have mortgages that will incurrent extra cost to break the contract if you plan to sell for move prior to the term ending. At the same time you want to ensure that you maximize the lowest rate for as long as possible to ensure interest saving. The most popular mortgage products are the 5 year terms whether fixed or variable. 

Q: Sari Nunweiler: I don't really understand the role of a Mortgage Broker vs. a bank; what's the difference?

A: That is a great question Sari and one that is asked all the time.  A mortgage broker/ associate works for you the client not for any specific bank or lender so our interest in is helping our client to get their mortgage approved with the best terms and rates on the market.  We specialize in mortgage financing which makes us very knowledgeable in all aspects of mortgage products and are experts in the mortgage process.  Our main objectives are to ensure you have the best mortgage product on the market that fits your needs. That your experience is fun, exciting and very educational.  We leave no stone unturned and no question unanswered which will ensure your mortgage fits your like glove and ensures you maximize your savings.

We help negotiate with the mortgage lender and banks on your behalf, advice and gather the required paper work from you the client and package the file to the lender to ensure a positive and timely approval.

Most banks focus on such a wide variety of projects and cross selling opportunities that their staff training is diluted and not focused. At Your Mortgage Link /yourmortgagenow.ca, we provide excellent mortgage services for purchases, refinances, renewals and the list goes on. We know mortgages inside and out, and best of all we do all of the legwork! Your Mortgage Link /your mortgage now.ca is a free service and has access to over 20 lenders and banks.

Q: Mike Maille: What is better a fixed rate mortgage or a flex one and why? 

A: Great question Mike:

A Fixed Mortgage offers you the security of locking in your interest rate for the term of your mortgage, so you know exactly how much principal and interest you will be paying on the mortgage during the term.

The Variable Mortgage allows you to take advantage of today's low prime rate. The interest rate will fluctuate as the Bank Prime changes.

Picking a mortgage product is based on individual client needs, goals, lifestyles, financial goals and risk tolerance.

There is no “better” product just a product that fits better for clients individually.

Saying that, traditionally if you have a variable product over the entire amortization of the mortgage you will pay less in interest then a fixed rate over the same amortized period all other things being consistent.

Q: Rachelle Nieman: What is the "best" thing to do for the average SK citizen in today's marketplace: sell your home if you have approx $50K in equity and use towards down payment of new home; or; rent out current home and buy new home, knowing that rental income will exceed current mortgage payments? 

A: Owning property in the current market I believe is a great idea.  As long as the rent received off sets total expenses mortgage payment, property taxes, utilities and allows for a couple month vacancy then it would be a good rental property.

On the equity part of your question you commented on having a possible $50,000.  Do to the government guidelines you are only able to access up to a maximum of 80% the value of your property.  Ex: on a property that is worth $300,000 you are only able to have a mortgage up to $240,000.00 total.  If the current mortgage balance is $200,000 then the available equity is $40,000.00 if the plan is to refinance and pull funds to be used for the down payment.

For the purchase of a new property will be owner occupied you are required in most cases to have 5% down payment.  If you don’t have the equity on the refinance and want to have both properties you will need access to funds outside of the equity in your current property to use that that would be ideal.

This all being said if it will work that it is a great idea 2 properties will increase in value more than just one if done correctly.

 

If you have any questions regarding these topics, please give us a all today at (306) 244-7755 or email us devinandwes@yourmortgagenow.ca

 

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