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Trusted Tips & Resources

Trusted Saskatoon Mortgage Broker shares a tip on two programs being cut from CMHC

 

 

 

What was the CHMC Self Employed (Without Traditional 3rd Party Validation of Income) product?

This product was introduced in 2007 in response to industry competition. The product allowed self-employed borrowers who were unable to provide traditional sources of income validation to access CMHC insured financing for a 1-2 unity owner occupied property. For self employed individuals, income validation documentation would include if you were a sole proprietor, the last two years of T1 Generals with financial statements and Notice of Assessments. If you were incorporated, income validation would included the last two years Notice of Assessments and T2 Generals with financial statements. Sometimes these documents were unavailable or due to the ability of writing off expenses for income tax the income for the year would be low and not a true representation of the income. If this was the case, CMHC would allow the income to be stated. The stated income had to be reasonable.

What does the loss of this product mean to the consumer?

This means that going forward the self employed consumer will have to prove their income through providing their notice of assessments, audited financial statements or unaudited financial statements prepared by an independent third party, for the previous two year period. Anyone who is looking to do an insured deal (less than 20% down) and are self employed, will have to be self employed for at least two years in order to use the CMHC revised product. Or you will need to have a lender that will use another insurer of which we have two, Genworth and Canada Guaranty.


What was the second home product?

CMHC introduced its Second Home product in 2005. If a borrower was purchasing a second home (for instance for children to live in while going to university or cabin at the lake), the CMHC Second Home product offered borrowers more financing options when purchasing an owner-occupied second home. This meant that you could purchase your second home with less than 20% down payment.

What does the loss of the second home product mean to the consumer?

This means that if you are going to buy a second home with less than 20% down, your lender will no longer be using CMHC. You will have to have at least 20% down in order to do the purchase or use another insurer of which we have two, Genworth and Canada Guaranty.

 

 

 

Trusted Saskatoon Mortgage Broker shares a trusted tip on How to effectively use your home equity

 

Is it time to renovate that kitchen or put an addition on your home? Or maybe you're tired of paying those high-interest credit cards. Or you're considering purchasing an investment property. If you're self-employed, you might need a cash infusion. So where do you get the money? Well, if you have enough equity in your home you might be able to borrow against it.

Your home's equity is an asset you can use either by:

  • borrowing against it with a second mortgage
  • or a home equity line of credit (HELOC)
  • or by refinancing.

There are pros and cons to all three options. Let's take a closer look at the options!

Refinancing

This is an entirely new loan on the property and pays out the existing mortgage. You can choose to refinance to take advantage of a lower interest rate or take out cash to pay off debts or to renovate. There has to be sufficient equity since you can only refinance up to 80% loan-to-value (LTV) through conforming lenders. However, if you're in the first year or two of a fixed-rate mortgage, the penalty to refinance may be onerous.

Second Mortgage

A second mortgage is a separate loan on the property, but is still secured by the property. This is a popular way to get much-needed cash quickly -- the application process is fast, as is the turnaround time. Second mortgage lenders focus on the property and the equity available. The interest rate will likely be higher because a second mortgage is riskier than a first. For example, in case of default, the first mortgage lender has the first right to proceeds from a sale or power of sale. However, there are situations when a second mortgage can be advantageous, especially if you already have a great mortgage rate on your existing first mortgage.

Home Equity Loans and Lines of Credit (HELOC)

A HELOC can be a stand alone first mortgage or an all inclusive collateral mortgage. The loan is approved using the same basic criteria as a mortgage loan. The full amount of the money is made available up front, and you can access as much or as little as you want. It's an installment loan that acts as a revolving line of credit. You access the credit line online, by using a cheque, credit card or by using your debit card. The "credit limit" is determined by the equity, but you'll only pay interest on the funds you use.

Whether you choose any of these options depends on your financial needs and situation. For example, if current interest rates are lower than the rate on your existing first mortgage, refinancing may be the best choice. However, if rates are up, taking out a second mortgage might make more sense. Or, depending on what your needs are, selecting a HELOC may be the way to go.

 

Tammy Wandzura Trusted Saskatoon Mortgage Expert Tip for Bad Credit

Purchasing your home is one of the biggest and most important decisions that you can make. Tammy Wandzura your Trusted Saskatoon Mortgage broker and the team at Elite Mortgage Choice  believe that buying a home should also be an exciting experience with little to NO stress. By trusting your Mortgage Broker, you are ensuring that any stress you may have had in previous encounters can be eliminated!

Tammy truly believes that all you should have to worry about is opening the door to your new home for the very first time.

Bad Credit? Want to qualify for a mortgage as soon as possible? Tammy Wandzura Trusted Saskatoon Mortgage Expert has all the tips you need to make the process progress smoothly! Tammy Wandzura AMP with TMG The Mortgage Group



 

Call Tammy Wandzura today at 306 933.3386 for all of your Saskatoon mortgage needs OR visit www.elitemortgagechoice.com

Make an appointment with Tammy Wandzura at TMG, #1-511 1st Ave N or check out her listing on the SASKATOON DIRECTORY in the SASKATOON MORTGAGES Category..she is a Trusted SASKATOON MORTGAGE BROKER Expert!

Listen to Tammys current Radio ad here! http://www.elitemortgagechoice.com/wordpress/wp-content/uploads/2012/02/SP0085.mp3 

 

Tammy Wandzura Trusted Saskatoon Mortgage Expert Tip for Immigrants to Canada

Purchasing your home is one of the biggest and most important decisions that you can make. Tammy Wandzura your Trusted Saskatoon Mortgage broker and the team at Elite Mortgage Choice  believe that buying a home should also be an exciting experience with little to NO stress. By trusting your Mortgage Broker, you are ensuring that any stress you may have had in previous encounters can be eliminated!

Tammy truly believes that all you should have to worry about is opening the door to your new home for the very first time.

New to Canada ? Want to qualify for a mortgage as soon as possible? Tammy Wandzura Trusted Saskatoon Mortgage Expert has all the tips you need to make the process progress smoothly! Tammy Wandzura AMP with TMG The Mortgage Group

Call Tammy Wandzura today at 306 933.3386 for all of your Saskatoon mortgage needs OR visit www.elitemortgagechoice.com

Make an appointment with Tammy Wandzura at TMG, #1-511 1st Ave N or check out her listing on the SASKATOON DIRECTORY in the SASKATOON MORTGAGES Category..she is a Trusted SASKATOON MORTGAGE BROKER Expert!

Listen to Tammys current Radio ad here! http://www.elitemortgagechoice.com/wordpress/wp-content/uploads/2012/02/SP0085.mp3 

 

Tammy Wandzura a Trusted Saskatoon Mortgage Broker Tip- Why choose Tammy?

Purchasing your home is one of the biggest and most important decisions that you can make. Tammy Wandzura your Trusted Saskatoon Mortgage broker and the team at Elite Mortgage Choice  believe that buying a home should also be an exciting experience with little to NO stress. By trusting your Mortgage Broker, you are ensuring that any stress you may have had in previous encounters can be eliminated!

Tammy truly believes that all you should have to worry about is opening the door to your new home for the very first time.

 

Tammy Wandzura a Trusted Saskatoon Mortgage Broker Tip- Why choose Tammy?


Call Tammy Wandzura today at 306 933.3386 for all of your Saskatoon mortgage needs OR visit www.elitemortgagechoice.com

Make an appointment with Tammy Wandzura at TMG, #1-511 1st Ave N or check out her listing on the SASKATOON DIRECTORY in the SASKATOON MORTGAGES Category..she is a Trusted SASKATOON MORTGAGE BROKER Expert!

Listen to Tammys current Radio ad here! http://www.elitemortgagechoice.com/wordpress/wp-content/uploads/2012/02/SP0085.mp3 

 

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TrustedSaskatoon.com
129 21st St E #500
Saskatoon, SK   S7K 0B2
Ph: 306.244.4150

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