Trusted Tips and Resources

Trusted Tips & Resources

Your Mortgage Now your Trusted Saskatoon Mortgage Brokers share a mortgage tip on The Costs of Upsizing

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!

Here they share a tip on The Costs of Upsizing:

Very few people stay in their starter home forever. Most of the time - whether it's because of a growing family or a growing income that allows you to purchase something better - homeowners opt to move to a larger abode.
 

 

If you're finding yourself in this situation, keep in mind that with a larger home comes larger costs. Below are just a few things to consider when you're dertermining how much more house you can afford:

1. Mortgage

Unless you're moving to a significantly less expensive area, chances are you're going to require a larger mortgage as your home's square footage increases. You can opt for a higher amortization to keep your monthly payments low (think 25 years), but this will also increase the amount of mortgage-paying years you have left.

2. Regular Maintenance (lawns, cleaning, snow removal)

This will be a particular shock if you're moving from a condo to a house. Lawns, gardens, snowy driveways - these all need to be maintained. Also, the bigger the house, the more you're going to have to clean (if you're into that sort of thing). Whether you hire people to perform these tasks or you opt to do them yourself, you're either looking at more money or more time spent on them.

3. Property taxes

Again, unless you're moving to an area that has lower taxes, chances are you're going to be paying more for a larger home. Find out from your Realtor roughly what the taxes are in your ideal neighbourhoods, and factor this into your budgeting before you start looking.

4. Utilities

Bigger house means more rooms to heat - and cool. You may also have to pay for water, sewage and other costs such as water heater rentals.

5. Emergencies

If you're already living in a house, this likely won't be an issue because you're used to the threat of unforeseen maintenance issues. If you're moving from a condo, however, it's important to note that you're no longer paying maintenance fees for a reason. If something goes wrong, you have to foot the bill yourself. Make sure you have a reserve fund ready.

6. Home insurance

With a bigger home comes a bigger home insurance payment. 'Nuf said!

Depending on where you're moving to, some of these costs might be offset. Particularly if you're moving closer to work - which will likely lead to lower gas bills and car insurance. If your new home is newer, and more energy efficient, you may not notice a huge difference in utility bills. And if you're moving out of a larger city, your cost of living might decrease all around. Make sure you figure out roughly how much new house you can afford before you start looking. There's nothing worse than finding your dream home only to realize it's going to make you house poor. 

 

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Your Mortgage Now - Trusted Saskatoon Mortgage Brokers Share a Mortgage Tip on Insurance

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!

Here Devin and Wes share a Trusted Saskatoon Mortgage Tip on Insurance:

Is Insurance Really that Important?  

 

When it comes to the long list of important things you have to think about when buying a new home, insurance for your mortgage is likely nowhere near the top.  But an unexpected accident, illness or death can quickly change all of that.

What if this happened to you?

There’s a common misconception that only middle-aged or older people need to think about insurance. Unfortunately, our claims files tell some eye-opening stories about:

  • A young couple, both killed in a freak accident when a bridge collapsed;
  • A younger mother killed by a brain aneurysm, just months after giving birth to twins;
  • Another mother killed, trying to protect her disabled son from being hit by a car.

Sure, once you are older it is generally true that there are more risks associated with your health. But young people also tend to have fewer assets than older ones. That means there are no extra resources to draw on if, all of a sudden, a regular source of income is gone.

Don’t save now, only to pay a lot more later

 

Anyone who has purchased a home has probably been there. You start out by setting a budget, but then you find the perfect house that is just a little bit beyond. You can’t say “no” to your dream for only $10,000 or $20,000.

Then, you find out that property taxes are higher than you expected, and that’s only the beginning. By the time you get to the point of finalizing your mortgage, you’re more than a little nervous about the new financial commitment you’re about to take on.

It’s only natural to want to avoid unnecessary costs at a time like this. But insurance is not “unnecessary” – especially in a situation where you feel like you’ll be financially stretched. If you’re going to have to work hard to make ends meet now, what would happen if one of the family breadwinners were to die or become disabled? How would you continue to meet the mortgage payments with only one income, or with none?

Your family’s dream home could be that again – just a dream.

Questions on your Mind 

“If I’m going to buy insurance, shouldn’t I talk to an agent or financial planner first?”

You’re in the middle of buying a new home, planning a move… where are you going to find the extra time to sit down and discuss insurance? Even after you get settled in your home, most families are so busy. Exactly when will you be able to make insurance your # 1 priority?

Are you comfortable with the idea that your home may be at risk in the meantime?

So, by all means, make a plan to visit an insurance agent. But don’t wait to protect your mortgage. If you later find that Mortgage Protection Plan is not the best fit for you and your family, you can cancel it. We’ll even refund all your premiums if you cancel within the first 60 days. That means you have two months to shop around, and if you find a protection option that you like better than Mortgage Protection Plan, we protect you for free.

“So, maybe it is important to get something going now.”

That’s right, and buying Mortgage Protection Plan is virtually the only way to guarantee that you are protected right away.

You start by completing an application and providing us with your premium collection instructions (a bank or credit card account from which we can collect your premiums). Once you’ve done that, YOU ARE COVERED – no matter what your health situation is, no matter how large of a mortgage you have (as long as it is less than $1 million).

That doesn’t mean that we don’t take your health into account at all. Insurance plans that work that way are usually very expensive.

We collect some medical information on your application and in most cases, that tells us everything we need to know. If not, we’ll contact you by phone to collect more details and possibly to arrange a paramedical exam. Based on that information, you may ultimately pay a higher premium, or your coverage may have some extra exclusions. The bottom line: we never decline a life insurance application.

"But isn’t term life insurance the least expensive choice? Everybody says so."

Maybe, maybe not. The questions of cost is not a simple one when you are talking about a long term commitment like your mortgage. Just be sure you look beyond an inexpensive premium quotation and get more details. Here are some questions you might want to explore when considering a term life policy.

“What’s involved in getting coverage and how long is it going to take?”

Applying for term life insurance can be time-consuming. An associated company of ours tells us that it’s not unusual for it to take an entire month before a decision is reached. One MPP customer told us that in order to get a small increase in an existing life insurance policy, she would be required to appear for a saliva test – even though she had always been healthy and was only in her 30s. Not exactly convenient.

“What will my insurance cost in five years? In ten years?”

There are many types of term insurance, with premium rates that are fixed for different periods of time. Don’t be fooled by a premium that is very attractive today, but will increase dramatically over time. Your premium could end up being double or even triple the amount you started out with.

Our studies show that Mortgage Protection Plan can be quite a cost-effective choice.

“Maybe I should consider the bank’s insurance. Then my insurance and my mortgage are together in one place.”

Your mortgage lender probably does offer the convenience of “bundled” payments – in other words, your mortgage payment and insurance premium are all rolled into one amount, and collected at the same time. And they likely do allow you to carry your insurance with you, whenever you renew or refinance your mortgage with them. This is a good feature that can save you a lot of money.

But what happens if you want to switch your mortgage to a different lender? What happens if, at that time, you are no longer in good health? The fact is that switching to a different lender could mean you have to pay a lot more for insurance, or you might not be able to get it at any price. This is where the lenders’ insurance programs have a serious limitation.

Mortgage Protection Plan stays with you, no matter what. It doesn’t matter if you sell your home, adjust your mortgage, or switch to a different lender.

Your original coverage is also locked in at your original premium. So, if you first buy Mortgage Protection Plan when you are 25 years old, you’ll have protection at an extremely low cost for your entire amortization period, and you never need to apply or submit health evidence again. You only have to do that if you increase your mortgage balance, and need additional coverage. Even then, your original amount of coverage cannot be changed or taken away.

Is Your Mortgage Protected?
If not, call Devin and Wes at (306) 244-7755.

Saskatoon Mortgage Brokers | Our Services Are 100% Free!

 

Your Mortgage Now - Devin Cristo and Wes Will Trusted Saskatoon Mortgage Brokers shares a tip on High-Ratio Mortgages & Current Rates

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!

Here Devin and Wes share a Trusted Saskatoon Mortgage Tip:

High-Ratio Mortgages & Current Rates:

 

 

Mortgage Information, Rate Updates, and More...

 
 

Current Mortgage Rates

Current Rates


Rates are subject to change without notice. For the most current rates, call (306) 244-7755.


High-Ratio Mortgages

When you need a mortgage that is more than 80% of the purchase price of your home, mortgage loan insurance is required. In Canada, mortgage insurance is provided by either CMHC, a crown corporation, Genworth Financial or Canada Guaranty, Mortgage insurance protects the lender and, by law, most Canadian lending institutions require it.

Having mortgage loan insurance means that if you, the borrower; default on your mortgage, the lender is paid back by the insurer. With the risk of losing their money removed, lenders have confidence to make mortgage loans up to 95% of the purchase price of the home. That means your down payment can be as little as 5% of the purchase price of the home.

How Much Does it Cost?

A premium will be applied. It depends on the amount of your mortgage in relation to your purchase price. The larger the down payment the less the premium. Although you are permitted to pay the premium up front, most borrowers pay it back over the life of their mortgage by including it with their monthly payments.

Down Payment Premium
5% 2.75%
10% 2.00%
15% 1.75%
20% 1.00%

Money Saving Tips

The decision to grant credit and the interest rate you can successfully negotiate will be strongly influenced by your past credit history. The best thing you can do is avoid debt as much as possible, always pay your bills on time, do not charge your credit limit up past 75% of what’s allowed, and the less you inquire for credit the better.

• Ask your lender for details in the trade off between slightly higher payments and a shorter amortization. For some buyers with good budgeting skills, ask what the payments would be over a twenty year amortization instead of twenty-five. In return for slightly higher payments, you could shave five years off your amortization, build equity in your home faster, and be well on your way to being mortgage-free sooner.

• Take advantage of any prepayment privileges your lender will allow. Treat your regular payment as a worst case scenario in which it will take twenty-five years to pay off your mortgage. Any extra payments you make go directly in your pocket, because every dollar you pay over and above your regular payment goes directly to principal. That means, whenever possible, a few hundred dollars here and there can quickly add up to a few thousand saved later on.

   

Devin Cristo - Broker License# 315791 • Wes Will - Broker License# 315790
Your Mortgage Now

801A 47th Street East, Saskatoon, SK S7K 8G7 • p: 306.244.7755 • f: 306.244.7756

info@yourmortgagenow.ca

 
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A Proud Member of Your Mortgage Link - Brokerage License# 315794

Trusted Saskatoon

 

 

 

Mortgage Rates


2.79% - 3 Year Closed

2.84% - 5 Year Closed

Click here for more!

Rates are subject to change without notice. For the most current rates,
call (306) 244-7755.


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Did you know....



 

 

Family Day Events

Family Day is Monday Feb 18, 2013

Here are some ideas and events to spend your Family Day in Saskatoon

Skating
Go Skating at the many outdoor/indoor rinks. Click on the Rink Schedule below for available public rink times.
Rink Schedule

Beaver Creek Conservation Area
Follow Lorne Avenue South 13 km on Highway 219
1:00 p.m. – 4:00 p.m.
Take advantage of the winter break to experience the joy of nature. Enjoy the trails and come and go activities.
A nature inspired craft will be offered daily from 1 - 4 p.m.

Continuum - Affinity Gallery
813 Broadway Avenue
1:00 p.m. - 5:00 p.m. An exhibition celebrating 18 artists who continue to produce bodies of work, spanning a time period of 40 years. The works will narrate the passage of time through the growth of these artists in their work.

Family Day!
Children's Discovery Museum

 

 

 

Own a Local Business?


Contact us today about featuring your local business in our next monthly Newsletter!

Email us at info@yourmortgagenow.ca

 

Apply Online

Your Mortgage Now -Trusted Saskatoon Mortgage Brokers Share a Mortgage Tip on Down Payments

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!

Here Devin and Wes share a Trusted Saskatoon Mortgage Tip:

Why Down Payments Matter

 

All lenders expect you to put some cash down on your home purchase. This is Down Payment and the minimum here in Canada is 5% of the purchase price. A Down Payment less than 20% makes for a high ratio mortgage and although you can get the same interest rate as someone applying for a conventional mortgage (>20% down), there will be CMCH, or (Genworth) insurance fees attached, according to the Bank and Trust Company Acts. The amount of insurance fees charged is relative to the mortgage size and your down payment amount - the current level of equity in the home. So remember, the more money you can save and put toward down payment, the lower your mortgage and payments will be!

Down Payment becomes increasingly important if your credit history is less than great. Some lenders will overlook past credit blemishes, not verify income and other financial status, if you have 35% to 40% of the purchase price for your down payment.

This equity that you build in the home goes to the banks in the unfortunate event of foreclosure. Hence, the larger the down payment the more protection the banks have. This is why your CMHC (or Genworth) fees are higher if your down payment is lower.

For CMHC fees, follow the link:                    

http://www.cmhc-schl.gc.ca/en/co/moloin/moloin_005.cfm

 Be sure to have your down payment ready at least 30 days before you apply for a mortgage loan.

 Ways to Accumulate a Down Payment

 - Start saving as much as you can as soon as you can. If you've already talked to mortgage lenders and they've informed you that your down payment is insufficient, make it a priority and find ways to save money such as foregoing a new car or a vacation trip.

- If you have enough equity in your RRSP, you can borrow the money from your account up to $25,000 Down payment can be borrowed from a secured line of credit or can be gifted from a family member.

Your Mortgage Now - Devin Cristo and Wes Will Trusted Saskatoon mortgage brokers shares a mortgage tip

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

Here they share a Trusted Saskatoon Mortgage Tip

Get Pre-Approved in Minutes

House hunting; what can you afford?

Find out and hold the rate for up to 120 days. Its FREE and no obligation.

A mortgage Pre-Approval is an important first step in getting a mortgage for 2 reasons:

• The pre-approval gives you a good idea of what mortgage size you can afford.

• The pre-approval will hold a rate for up to 120 days, thus protecting you from any sudden rate increases.

Our Pre-Approvals are:

• FREE, No Obligation

• Kept on Secure Servers for Your Privacy

• Guaranteed to be the Lowest Interest Rate for 120 Days with certain lenders

• Fast and Easy – 5 minutes on the phone today and your mortgage can be pre-approved with rates locked!

Your mortgage pre-approval will be based on the information given and the supporting documentation provided by you. Please be honest and up front with us. We will then work together to get you approved at the best rate and terms. Our job is to shop the mortgage lenders on your behalf. As mortgage professionals, we put the client first. The most importage mortgage is YOURS!

The five factors that count the most when lenders are deciding whether you qualify for a mortgage loan are:

• Your income

• Your debts

• Your employment history

• Your credit history

• Your identity

• Your property value When you understand how a lender will judge your loan application, it is easier to see your own strengths and weaknesses as a loan applicant.

A strong loan application will have these features:

• A housing expense ratio no greater than 32% (Now optional) (the lower the ratio, the better)

• A debt-to-income ratio no greater than 44% (the lower the ratio, the better) • The home buyer has steady income - ideally, the same job for two years or longer

• The home buyer has good credit (bills have been paid on time)

• The house is worth the price the buyer is paying

Your Income

One of the first questions a lender will consider is how much of your total income you'll be spending on housing. This information helps the lender decide whether you can comfortably afford a home. If the house payment represents a large portion of your income, you're more likely to have trouble making these house payments because of your other potential expenses (such as car, furniture etc.). On the other hand, if the house payment is a small portion of your income, chances are better that you can truly afford the house. When you're applying for a loan, the lender will look at your 'gross income'. Your 'gross income' is all the money you earn before taxes, including overtime, commissions, dividends and any other sources. You must be able to show a steady history for these sources. For example, many lenders will count income from a part-time or seasonal job as long as you can show that you've had the job for at least two years.One important thing your lender will do is compare your housing expenses now to the expense you'll have if you buy a home. The smaller the increase, the stronger your application looks.

Your Debts

In addition to your income, a lender will look at your debts. Generally your debts include your house payment as well as payments on all loans, charge cards, child support, etc. that you make each month. If you’re overloaded with debts, perhaps taking equity from your home to consolidate your debt is a viable, cost saving option. Your Employment History You don't need to be wealthy to qualify for a mortgage, but a history of steady employment in any occupation helps. Lenders are more likely to lend money to people who have worked for several years at the same job, or at the same type of job. However, if you've only been in your current job a short while, this won't necessarily stop you from getting the loan, as long as you've had regular income over the last year. The lender will check your employment; usually by asking you for a letter from your employer which is signed and states how long you have been on the job and how much money you earn. If you're self-employed, or if you've been at your job less than two years, the lender may ask you for additional information (such as federal income tax statements) concerning your income and work history.

These are the kinds of questions a lender considers when reviewing your loan application:

• Have you been at the same job for at least two years?

• Have you been in the same occupation for at least two years?

• Have you had gaps in your income over the last two years?

• How long do you expect to stay in your current job?

• Is the co-borrower (if any) employed?

• If either you or the co-borrower lost your job, how long would you be able to make your mortgage payments?

Your Credit History

Good credit is very important in qualifying for a loan. In addition to your ability to pay (as indicated by your debts and income), a mortgage lender will look at your willingness to pay. This will be judged by your credit record - that is, how well you've paid your loans and other debts in the past. When you apply for a loan, the lender will order a credit report for you. It's a good idea to order a copy of your credit report before you apply. It will show your record of payments on loans, charge cards and other similar debts. If you've never had a loan or a charge card, you can show that you have a good record of payment on your utility bills and rent.

Your Property's Value

When you choose a home, the lender will want to know that the house is worth the price you plan to pay. In fact, the loan amount that the lender approves for you will be based on the value of the property. The value of the property is a lender's best assurance that they can recover the money they lend you - even if you stop making mortgage payments. If you stop making payments, the lender has the right to sell your home to pay off the loan - a process called "foreclosure". The lender wants to know that the property could be sold at a price that's worth the loan amount. If you decide to sell your home before you've finished paying off your mortgage loan, you'll want a price that allows you to pay back the loan balance (and perhaps make a profit as well).

That's why it's important to have a professional appraisal of the value of your home. Your Identity Identity theft is a growing problem in Canada for both individuals and for lenders. To make sure no one is falsely using your identity to borrow money for a home, we will ask to see photo identification. We may also ask you some questions about your credit history to confirm the information that's on record at the credit bureaus.

Want to know if you're pre-approved? Apply online today!

   

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129 21st St E #500
Saskatoon, SK   S7K 0B2
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