Trusted Tips and Resources

Trusted Tips & Resources

Trusted Saskatoon Mortgage Brokers Tip About The 2020 Housing Market


 Homebuilders Deals & Incentives on New Construction

Mike and Crystal Green couldn’t have picked a worse time to look for a new home. In mid-February, Mike was offered a promotion to be a regional sales manager at a computer security company. The catch was the couple would need to relocate 

The Greens accepted an offer on their home two days after it went on the market in early March. But by then, the Greens didn’t feel safe flying to check out houses given the coronavirus pandemic. The government was urging workers to stay home if possible and practice social distancing when out in public to combat the spread of the coronavirus.

That wound up working in their favour. The Greens went online and took a virtual tour of a home they liked. It was in a new development. They were able to choose custom details via Zoom and email—and got a discount on their new home

If they closed in March, and the builder would throw in a free Whirlpool refrigerator, washer, and dryer as well.


The Greens have plenty of company on the receiving end of a wave of aggressive incentives for buyers of new construction. With a global health crisis raging and the ensuing financial fallout with many workers laid off,  homebuilders around North America are offering discounts, throwing in freebies, and covering closing costs to attract buyers and close deals.

They had to do something. Tours of new-homes have dropped and more potential buyers deciding to put off their new home searches until things truly settle.

CMHC

2020 summer edition of the Housing Market Outlook report provides forecasts for Vancouver, Calgary, Edmonton, Toronto, Ottawa and Montreal. It builds on the Spring 2020 edition that focused on housing market activity for Canada and the provinces.

These reports give high and low range projections on new construction, home sales, house prices and rental market activity.

Housing forecast overview for Canada’s major urban centres

  • Sales and construction have dropped
  • House prices will likely fall because of uncertainty over the economy’s path
  • It is possible that vacancy rates increase in the rental market
  • Recovery in major markets is highly uncertain and will vary considerably

For Canada’s 3 largest cities, there had been steep employment declines according to Statistics Canada:

  • 18% in Montreal
  • 17% in Vancouver
  • 15% in Toronto 
Such large employment and income declines, coupled with uncertainty over the future trajectory of the virus, will lower the demand for housing in the urban centres. Housing starts should rebound by year-end, as projects, settled before the pandemic, should be starting soon.  Rental apartment starts will benefit from the slowdown in the demand for homeownership. 

By 2022, housing prices should be following a slight upward trend and even exceed their pre-pandemic levels.

Read the full CMHC report here 

Buyers may also get deals on custom homes

While deals on newly constructed homes abound, buyers can also shop around for discounted lots where they can have their dream homes built.


Trusted Saskatoon Mortgage Brokers Tip On Purchasing Property During the 2020 Coronavirus Pandemic

What  Are Your Top Questions About Purchasing Property During the Coronavirus Pandemic?


The coronavirus pandemic has thrown millions of people's financial plans off the rails, and that certainly includes home buying. If you were hoping to purchase a property soon, you no doubt have a lot of questions—about whether it's possible to buy or tour a house now, COVID-19's impact on home prices, and more.


Is now a good time to buy a house, financially speaking?

From a financial perspective, there are certainly some advantages to buying a home right now. For one, mortgage interest rates are historically low, which means your monthly housing payments will be lower, too. And putting a property under contract now and locking in a low-interest rate gives buyers more control than living in a rental where rents might go up.

Another big consideration on the financial side of the home-buying equation comes down to competition. The coronavirus has dissuaded some home buyers from home shopping for the time being. So buyers who do venture out face less competition, which could put them in a stronger position to negotiate with sellers.


How has the coronavirus affected home prices?

The coronavirus has the world economy in turmoil. But so far at least, this does not mean that home prices have plummeted across the board or that buyers can lowball their way to a bargain. Instead, in most real estate markets, home inventory remains very tight.

"I don't expect the slowdown to be like the last recession where prices fell," says realtor.com chief economist Danielle Hale. "There are more than enough buyers out there to keep home sales from slowing in any major way.”


Is it safe to buy a house now?

While no one can guarantee you won't catch the coronavirus, the real estate industry has worked to prioritize buyers' and sellers' health by eliminating personal interactions almost entirely during the pandemic. Even as different states reopen, you can still do most aspects of the home-buying process remotely, or at a safe social distance, when it comes to your home search that you may not have considered doing in the past.

First, you can find and interview Saskatoon and area Realtors virtually. While showings may not be easy to arrange because of shelter-in-place orders or continuing health concerns, most real estate listings now offer virtual tours.

Should I buy a house sight unseen?

While buying a house sight unseen has long been the only option for people relocating due to a new job or military service, the trend has been on the rise for more and more folks. In fact, according to a realtor.com survey of 1,300 consumers during the week of April 5, 24% (or 1 in 4) said they'd be willing to buy a home without seeing it in person.

Buyers who consider buying a house sight unseen generally have some comfort level with the neighborhood and know the market. And according to realtor.com senior economist George Ratiu, the comfort level of buying a house sight unseen may come down to age.

"Younger cohorts are more inclined to rely on detailed photos, virtual tours, or live video instead of an in-person visit, with 31% indicating they would be willing to buy sight unseen," says Ratiu.

Even if you're buying blind, you shouldn't operate completely in the dark. Here are some features that buyers find most helpful in such a home search.

  • The ability to take a virtual tour of the home
  • Listing and neighborhood information that is accurate and detailed
  • Plentiful, high-quality listing photos that show the property's interior and exterior
  • An agent or landlord who can walk a buyer through the property via video chat

Ask for more advice on how to buy a home sight unseen before you commit to a purchase.

What Else? 

  • Figure out how much home you can afford: The pandemic has roiled markets and caused tremendous economic uncertainty. So you'll want to carefully consider how much home you can afford and err on the conservative side. Contact us to help you determine your monthly mortgage payment.
  • Secure mortgage pre-approval: Now it’s more important than ever to get pre-approved to show sellers you’re serious when you make an offer. Pre-approval shows how much a lender will loan you, assuring the seller that you’re financially capable of buying a home.



Trusted Saskatoon Mortgage Brokers Tip About Your Phone and Low Mortgage 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. 

So How Does Your Phone Affect Your Mortgage Rates

What many people aren’t aware of is that your cell phone payment history DOES affect your credit score.
 
Cell phone accounts work differently than a credit card or a line of credit. A cell phone is an open or “O” account, which means the balance has to be paid in full at the end of each month.
 
There is no such thing as a minimum payment with an “O” account like there is with credit cards and lines of credit. You can’t just pay a portion of your bill. The amount that you see on your statement has to be paid in full otherwise your credit score will suffer.
 
Unfortunately, many Canadians don’t view paying their cell phone bill in full or on time as being as important as other payments. Lenders disagree. The bank underwriters (the people who review your application) are thinking, “If you can’t make or keep track of a cell phone payment, what are the chances that you are going to be responsible with your mortgage payment?”

Costly Missed Payments

Let’s take a look at one borrower, John, who was declined for best-rate mortgage financing on the purchase of a new house because he had three late payments on his cell phone bill during the last two years. His argument wasn’t unique. “I called (the phone company) before the payment was due and asked if I could pay half of the bill this month and the remainder of the outstanding balance the following month,” he said. “The customer service rep told me that it was okay to take a couple of months to get caught up.”
 
Susan and Frank found themselves in a similar situation. They were approved for mortgage financing but were then declined at the last minute due to a recent late payment showing up on their report in the same week they were supposed to be moving.
 
Arranging a mortgage and preparing for a move is stressful enough without having a financing issue in the eleventh hour. In the end they were able to find a resolution, but it resulted in a delayed closing. They had to get approved by a different lender at a higher rate. In addition to all the stress and time, this small mistake ended up costing them $3,459.28.
 
Despite what they tell you, late payments will continue to be recorded until your account is caught up. Underwriters will look at an applicant with an outstanding balance as someone who is not in control of their finances. It will drop your score and hurt your chances of being approved for the best rates and terms.

A Matter of Principle

It’s common for consumers to not make a payment because they were unfairly charged or they found a mistake on their bill. On principle, I understand that you might not want to make the payment, however, even if you are disputing the charge, it will not stop the negative item from showing up on your credit report.
 
And keep in mind that one late payment can be enough to negatively impact your best rates and terms for future financing. Your cell phone company will start the collection process if an overdue balance is not paid within 60 to 90 days.
 
As you can guess, a collection appearing on your report does not help your credit score. Many of my clients echo my caution, and in hindsight wished they had simply paid the bill in the first place. If you find yourself in this situation, my suggestion is to clear the amount owing first and then dispute the charges. That way it doesn’t lower your score or cause you to get charged higher rates just because of one account. 

Warning…Warning

If you have paid out or closed your cell phone account, make sure you get something in writing to confirm that there is no outstanding balance owing.
 
The same goes for an outstanding amount or settled collection. Don’t take anyone’s word for it or assume that it will be updated on your credit report. Are you starting to see a trend? Whatever you do, get a confirmation in writing! If you don’t, it will make trying to correct the error even more difficult.
 
The only way to avoid having your cell phone report on both Equifax and TransUnion is to go with a pay-as-you-go contract. If you are on any other type of plan, keep your fingers crossed. You don’t want to be one of the unlucky ones to have a cell phone error or problem tarnishing your credit. To improve your chances of avoiding any issues, ensure you pay the full amount owing each month and keep good records.

Trusted Saskatoon Mortgage Broker: Tammy Wandzura explains the Mortgage Approval Process

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

Mortgage Approval Process

Being READY, ORGANIZED and ENGAGED are the keys to a successful Mortgage Approval process.

We are here to walk you through the steps from PREAPPROVAL to POSSESSION date so that you have the information you need to make big decisions in a timely manner.


  • As your Mortgage Broker, we are here to do a full pre-qualification.
  • We ensure you have ALL of the information you need to make informed decisions about the largest purchase and investment you will ever make.
  • We are Provincially legislated to work in your best interests.
  • There is no cost to using our services.
  • We are knowledgeable about everything related to mortgages, including any new mortgage rules or requirements that may impact your decisions.
  • We review your file and find the best lenders, rates, terms and conditions that meet your current and future financial goals.
  • We are speedy.  Our response times include evenings and weekends when necessary to keep your file moving in a timely manner.
  • We walk you through every step of the process in an easy to understand manner.
  • We organize the process for you so that the entire experience is exciting and well understood.
  • We really care.  Although most of our process is over the phone and email, we are located locally and we are here for you every single step of the way.

Each applicant will have different information that has to be collected depending on their employment status, length of time at employer, where the downpayment funds are coming from and overall credit health.

We collect ALL of the needed supporting documentation along with a FULL application at the time of pre-approval request.

This ensures that the information we have on file will match what the lender will accept and support once you have an accepted offer in on a home you wish to purchase.


We are here to walk you through each step of ‘the process’.  We are not the bank. We are here to ensure that we structure the application and the mortgage approval request in a way that the lender will support and easily/quickly approve, all while setting up a mortgage that meets your future needs and financial goals.

We make the process as simple as possible.

Our motto is: Mortgages. Simplified.

In saying that there is information you must disclose and paperwork that must be provided in order for us to present the best lender options and rates available on the market.

Unfortunately, we cannot run hypothetical figures based on the information we gather from you over the phone.  We do need a full application and supporting documentation.

We are here to create a success story for you.  The more organized we are in communicating solid information to you; the simpler the process for you. 

Why do we check your credit when you are only asking for a PRE-APPROVAL?

Your credit score is a huge key to the entire mortgage approval process.

The new mortgage rules outlined by the Federal Government in October 2016 made your credit score more important than ever.

Your score and the overall health of your credit will determine what lenders may consider your application, your total maximum purchase price and rate in some cases.

Your credit is important to us!

Our goal is to ensure your credit is healthy and stays healthy through the life of your mortgage (25 years), to ensure we can assist you with your renewal options in the future.

We are happy to provide tips and suggestions to build stronger credit throughout the pre-approval process.

We have a 5-star review on GOOGLE because we treat each transaction like our very own mortgage approval.

Our database has been built from amazingly happy clients that refer our services to their friends, family and colleagues.

We are speedy, knowledgeable in everything related to mortgages and we are able to provide same-day pre-approvals.  

Communication is the single most important part of the entire transaction.  We explain things thoroughly and clearly, in a way that you can understand.

Most important we are always here with you through the process to answer any questions that may come up.

What is the process?

We are dedicated to amazing communication – which includes speedy reply time.

For that reason, we have an amazing process that allows us to move fast even if you have tight timelines to meet.

  • APPLY ONLINE at www.elitemortgagechoice.com
  • This information comes directly to us and allows us to start a file for you
  • We will be in touch with you to fill in any gaps that are unique to your situation
  • We will provide you with a list of paperwork we need to review and add to your file
  • Documents should be sent to us electronically when at all possible
  • We will then provide you with the numbers of your mortgage pre-qualification for your full review
  • We are able to provide referrals to Realtors, Lawyers, Home Inspectors etc (if needed)
Most of our process is done over email, online, phone and fax.  

We are always available via email OR phone 306.933.3386 to answer any questions.

You will be hearing from Tammy (Mortgage Broker), Marie (Tammy’s Executive Assistant) or Brydon (Mortgage Associate) throughout the process of your application.

We can review your information now to prepare you for the future.

Thank you for taking the time to read and educate yourself on what steps you may need to take to consider homeownership.

I am here to work with you every step of the way!


Tammy Wandzura is a Trusted SASKATOON MORTGAGE BROKER  





Trusted Saskatoon Mortgage Experts Explain Refinancing Your Mortgage with Home Equity

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.


How can you Refinance your Mortgage with Home Equity? 

re financing mortgage saskatoon

With spring just around the corner, you might be thinking about renovating the house, sprucing up the backyard, or even purchasing your first cottage. Refinancing your mortgage may allow you to find the money that you need for these aspirations.

The first thing that you have to consider is how much equity has built up in your home since you started paying down your mortgage. Your home equity – your home’s value minus the balance of your mortgage – is available for you to withdraw and invest in a number of ways, including home renovations, additional real estate, post-secondary education, and much more. Has the property value increased? Decreased? You can obtain a realistic figure by getting a market evaluation of your home. By multiplying your current market value by 80% should give you an idea of how much you would be able to borrow for your new project.

The second thing is to look at different options when it comes to realizing your goals and every individual situation is different. Some choices that a person can look at are:

  • A new mortgage (the amount of your existing balance plus the amount that you would like to borrow);

  • A home equity line of credit;

  • A combination of a mortgage and line of credit.

The third step would be to sit down with Devin or Wes, your mortgage specialist and assess your different needs and that is why we are here to help you answer these important questions. So contact us today and we will help you come up with the best strategy for your lifestyle.


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