Trusted Tips and Resources

Trusted Tips & Resources

Trusted Regina mortgage broker explains the First Time Home Buyer Incentive program

Skott Enns – Skott’s goal isn’t to simply help you get a mortgage with the best mortgage rates, it is to help you figure out a plan to pay off your mortgage as quickly as possible!  Has been voted Regina’s best mortgage broker for 2013, 2014, and 2015 & 2016 by Prairie Dog Magazine and named to the Summit 20 group, which means that he is in the Top 20% of all TMG Mortgage Brokers in Canada for the last two years.

If you are looking for honest, unbiased advice from a mortgage broker in Regina they would love to talk with you!

TMG The Mortgage Group Skott Enns is a Trusted Regina Mortgage Broker



Skott sat down with CBC and explained the First Time Home Buyer Incentive program.




In a recent interview with CBC News our Trusted Regina Mortgage Broker  Skott Enns sat down and explained the new features of the First Time Home Buyer Incentive Program.  In addition Skott goes on to examine some potential pro's and cons with this program.  He begins by stating that:

Starting September 3rd for any homes where possession is starting in November if a potential first time home buyer has the minimum 5% down payment, CMHC will provide them with an additional loan of 5% for an existing home or an additional 10% for a new build for the down payment.  

He also states that outside of being a first time home buyer the maximum household qualifying income that they can use for mortgage approval is $120,000. per year.  So if your household makes more than this you will not qualify for this program.  Additionally the largest purchase price for approval is four times the amount of your qualifying income.  

Something buyers need to note is that when you do choose to sell the home the monies that CMHC provides will need to be paid back to them though the loan is interest free.


Benefits of the Program

When asked as a mortgage broker what are some of the benefits you see to a program like this Skott detailed his perspective as follows:


  • It allows a first time home buyer to keep their cost as low as possible when considering principle and interest payments
  • The program will reduce your CMHC premium

Negatives of the program

Skott goes on to outline some potential negatives of the Program:

  • People forget - If you sell your house in 10 years you may forget that you need to re pay the loan to CMHC.
  • People have general concerns about being in partnership with CMHC who is part of the Federal Government on the biggest investment which is their home.
He adds :

To be honest this is the first bit of good news that we have had in terms of qualifying for a mortgage.  
The news coming out about mortgages and from CMHC has been about how difficult the newest changes make it for not just first time home buyers but anybody to qualify for a mortgage.  It seems that every change has been making it more and more difficult. But this bit of good new will help keep payment down for a segment of the market.

To find out more watch the entire interview here


If you are looking for honest, unbiased advice from a mortgage broker in Regina Skott and his partner Ryan  would love to talk with you!

Skott Phone 306-201-6500  Ryan Phone 306-570-3379 

No Time to set up an appointment! No Problem! You can also click here to apply now  with Ryan or apply now with Skott and get the ball rolling.

TMG The Mortgage Group Skott Enns & Ryan Boughen are Trusted Regina Mortgage Brokers


Trusted Regina Home builder explains how building your dream home might be more affordable than you think!

Emerald Park Homes takes great pride in their workmanship, and have some of the finest tradesmen in the industry working together with them to create quality homes. Their focus is: "Our Quality Shows” and if you drive around the communities of White City / Emerald Park located just 8 minutes east of Regina on the #1 Highway, you will see signs on the lots available for your custom designed Emerald Park Home.

Put 20 years of experience in home building to work for you! Emerald Park Homes are TRUSTED REGINA & REGION HOME BUILDERS and they are experts in their industry.

Trusted Regina Home Builders Emerald Park Homes- Regina's first Holmes approved home builder

Trusted Regina Home Builder tip on Building Homes to a Higher Standard from their

Emerald Park Homes Builders Blog.


Whether you’re planning on building your dream home or buying a used home, the process to determine whether or not you are financially ready is the same either way. If you are financially ready to buy a home, then you are ready to build a home.

So, how do you determine if you are financially ready?

1. You should start by comparing how much you are currently spending on expenses and any debt payments to the amount of money you have saved up.

In other words, you need to get an idea of what your net worth is in order to know where you stand financially. You can do this by making a list! (We love our lists around here, that’s for sure!) Write down everything that you own that is considered an asset (your savings, investments, vehicles, home, etc.). Now write down all of your debts (student loans, credit card debt, your mortgage, etc.) and subtract them from your assets, and you have your net worth. Don’t worry about your income in this equation, this is just to give you an idea of your financial health.


2. Think about how much can you afford to spend on housing each month without risking your financial health.

Is what you’re spending now on housing about where you need to stay to keep your budget intact, or can you afford a bit more? The nice thing about building your own home is that you can make sure that you’re paying for what you actually want to have in your new home and not extras that you will never use. When you purchase a used home, that isn’t always the case. For example, if granite counter tops are not important to you and you would rather not spend the money, but the previous owners installed new granite counter tops… Guess what? The cost of that home included those expensive granite counter tops.

3. Look into your credit score.

What is the status of your credit score currently like? Your credit score is a number that signals your financial health and is an important factor that lenders use when they are analyzing your credit for a mortgage. According to Equifax, a credit score of 660 to 900 is generally what you need for your credit score to be considered to be good, very good, or excellent.


4. Consider how much money you will need for the upfront costs of building a home.

Generally, you will need a down payment of at least 10%. This is where a lot of people think that building a home differs from buying a home. People often think that building a home requires interim or progress payments – which, many people are not in the financial position to comply with. However, that is not always the case. 

We’re happy to inform you that, with Emerald Park Homes, in most cases, will finance your build to possession day (On approved credit).

Giving you time to sell your existing property without having to worry about paying progress payments or obtaining costly interim financing.


5. Now it’s time to shop around for a pre-approved mortgage amount with a bank, broker or lender.

Getting pre-approved for a mortgage is an important step to take before you get too far into the building or buying process. It helps you get an idea of what sort of budget you have to work with to build your new home.

There are two basic affordability rules that will determine how much you can spend on your new home without risking your financial situation:

  1. Your monthly housing costs should be at or under 32% of your gross monthly income.
  2. Your monthly debt load (including your mortgage) should be at or under 40% of your gross monthly income.

Fellow Trusted Regina PartnersMacKay & McLean have some great information on a list of things you’ll need to have to get a mortgage.


6. Determine whether or not you are going to be needing mortgage insurance.

Mortgage loan insurance is necessary if you have less than 20% saved for a down payment. It protects the banks and other lenders against the risk of mortgage default, and just like property insurance it protects you in case of loss. Insurance premiums on mortgage loans are calculated as a percentage of your total loan amount. They’re based on factors including the size and source of your down payment. In general, the smaller the down payment is, the higher the insurance premiums will be. You can usually pay your mortgage loan insurance premiums up front or have them added to your mortgage loan.


7. Lastly, make sure to have a team of experienced professionals to help you along the way.

Find a Trusted lender or broker that is right for you. There are many sources for mortgages, including: banks, trust companies, credit unions and pension funds. Each offers different terms and options, so be sure to shop around to find the one that is best for you.

Hire a professional home builder. If you’re building a new home or your used home needs extensive renovations, you’ll need to hire a builder or contractor. It’s always a good idea to visit their show homes to see examples of their work. Check into their standing with with associations like Trusted Regina and with a local home builders’ association and Home Warranty program.

Using a home inspector is always a good idea. Whether you’re building new or buying a used home, you should have it inspected by a professional home inspector. When you build with Emerald Park Homes, our homes are inspected by Mike Holmes Approved Inspectors to ensure that your home is built right from the ground up.

You will need to hire a lawyer to protect your legal interests. They make sure that the property you want to buy is free of any liens, charges and work or cleanup orders. A lawyer will also review all contracts before you sign them, especially the offer to purchase and the mortgage documents to explain the fine print.

An Insurance broker can help you find the right property insurance to cover the replacement cost of your home and its contents in case of loss. It is also a good idea to get mortgage life insurance, which will protect your family if you die before your mortgage is paid off.

 
Contact us at emeraldparkhomes@sasktel.net or call (306)781-3383 to speak with the builder about available lots, or to book an appointment.


Find Emerald Park Homes online or check out their listing on Trusted Regina to read the wonderful things their clients have to say about them ... they are your Trusted Regina Home Builders!


Trusted Regina Real Estate Lawyer Robert MacKay Shares That The Bank Of Canada has lowered the mortgage stress tests rate

MacKay & McLean provides the professional services of a large Regina law firm, with the intimate attention of a small firm. The legal process can be daunting and overwhelming, but it doesn't have to be. MacKay & McLean is with you every step of the way.

MacKay &  McLean are TRUSTED REGINA LAWYERS

When looking to buy, sell, or refinance a property, you need to hire somebody who is not a stranger to addressing the real estate needs of individuals and families. 

Bank of Canada lowers qualifying rate used in mortgage stress tests

The Canadian Press - Jul 19, 2019

With files from BNN Bloomberg


According the Canadian Press  and other sources The Bank of Canada has lowered the rate used by mortgage stress tests to determine whether would-be homeowners can qualify, marking the first drop in three years.

The central bank's five-year benchmark qualifying rate is now 5.19 per cent, down from 5.34 per cent.

It's the first decrease in the five-year fixed mortgage rate since September 2016, when it dropped from 4.74 per cent to 4.64 per cent, and increased steadily since.

Rob McLister, founder of mortgage comparison website RateSpy.com, says the dip will increase the buying power for mortgage borrowers by allowing them to afford up to 1.4 per cent more home.

For example, someone putting a 20-per-cent down payment on a home who makes $50,000 per year can now afford $4,000 more home, according to calculations by Ratespy.com.




The Bank of Canada's five-year benchmark rate is calculated using the posted rates at the Big Six Banks.

Home sales softened last year after the federal government introduced new stress test rules for uninsured mortgages, or those with a down payment of more than 20 per cent, and mortgage rates inched higher.

As of Jan. 1, 2018, to qualify for an uninsured mortgage, borrowers needed to prove they could still make payments at a qualifying rate of the greater of two percentage points higher than the contractual mortgage rate or the central bank's five-year benchmark rate.

An existing stress test already stipulated that homebuyers with less than a 20-per-cent down payment seeking an insured mortgage must qualify at the central bank's benchmark five-year mortgage rate.

The federal financial regulator has said that the new, stricter regulations aimed to tighten mortgage lending and take some of the risk out of the market.

Meanwhile, home sales have improved in recent months as mortgage rates have moved lower.

But on Thursday, the Ontario Real Estate Association called for less stringent mortgage rules, saying that policy changes are needed to counter a downward trend in home ownership.

OREA's chief executive Tim Hudak said in a letter to federal policy-makers that Ottawa should consider restoring 30-year insured mortgages, ease up on the interest rate stress test and eliminate the test altogether for those renewing their mortgage with a different lender.

Borrowers looking to renew their mortgages are subject to stress tests if they switch to a new lender, but not if they stick with their current one.

In a May letter to policy-makers, the chief executive of Canada Mortgage and Housing Corporation defended the stricter lending rules, arguing that "the stress test is doing what it is supposed to do."


For more questions and help with any legal property issues consult with our Trusted Regina Real Estate Lawyer Robert MacKay


Here is a list of more consumer tips by Robert MacKay 



Robert MacKay's team provides professional, personalized service and with their assistance, you can rest assured that your real estate transactions will be handled with the utmost consideration and care.

They  provide a full range of legal services including:

  • Real Estate & Mortgages
  • Wills & Estates
  • Family Law & Divorce
  • Commercial & Corporate Law
  • Litigation & Personal Injury

ROBERT Mackay is your TRUSTED REGINA REAL ESTATE LAWYER!



Trusted Regina Real Estate Lawyer Robert MacKay asks: Do you know what kind of mortgage you have?

MacKay & McLean provides the professional services of a large Regina law firm, with the intimate attention of a small firm. The legal process can be daunting and overwhelming, but it doesn't have to be. MacKay & McLean is with you every step of the way.

MacKay &  McLean are TRUSTED REGINA LAWYERS

When looking to buy, sell, or refinance a property, you need to hire somebody who is not a stranger to addressing the real estate needs of individuals and families. 

What an exciting time – the old house is sold, the new one is ready, and all that’s left is the move…..oh wait – not quite yet! There is all that legal “stuff” to deal with now….signatures….titles to be given…and pages and pages of documents that need to be signed before the key is in your hand!!! And to top it all off – who really knows a good real estate lawyer?

Do you know what kind of mortgage you have?

Hardly anyone pays attention to what type of mortgage they have. 


Sure, they know whether they have a fixed rate, a variable rate or an adjustable rate but few are aware that their mortgage will have a particular legal standing or why it is important.

When a market goes up, it's all roses and sunshine, at least if you already own your own home. Trying to buy in such a market can be a scary proposition. When the market goes down, well, that's scary too but for different reasons. 

Buying a house to find out it might be worthless in a year's time is not a fun proposition. However, we all still need a place to live and the markets will do what it will do.

In the event the downturn is significant or if you know what hits the proverbial fan, all of a sudden that legal distinction can be very important. 

Purchase Money Mortgage

For if you have what is known colloquially as a "purchase money mortgage", money borrowed to buy the property, then the bank's recourse is limited to the seizure and sale of the property.

So, if it sold for $1.00 but you still owed $1,000,000, well, the bank will be hoping its mortgage was insured, as they are not unable to chase you for any deficiencies under the mortgage.

This is an important consideration in a lot of foreclosures, as a lot of people have refinanced their property to consolidate debt or finance renovations. Luckily, the portion of the mortgage that related to the property's purchase is still protected.


Once you have committed to either buying or selling your property, simply tell your realtor and lender, as applicable, that Robert MacKay will be representing you and to forward the appropriate instructions to MacKay & McLean, attention "Robert MacKay". 

Robert MacKay's team provides professional, personalized service and with their assistance, you can rest assured that your real estate transactions will be handled with the utmost consideration and care.

They  provide a full range of legal services including:

  • Real Estate & Mortgages
  • Wills & Estates
  • Family Law & Divorce
  • Commercial & Corporate Law
  • Litigation & Personal Injury

ROBERT Mackay is your TRUSTED REGINA REAL ESTATE LAWYER!


Trusted Regina Mortgage Expert Answers Questions About Rising Lending Rates

Trusted Regina's Skott Enns and Ryan Boughen of TMG The Mortgage Group can be found in the Mortgage category.  


We sat down and asked Skott Enns of TMG The Mortgage Group some questions we thought you'd like the answers to!


"As many of you have now heard, the Bank of Canada increased its lending rate to 0.75%. That is an increase of 0.25%, from their previous rate of 0.50%."


QUESTION #1: Who will be affected by this?


 "When the BoC increases their rate, this will typically translate into an increase in the Prime lending rate, which is how banks calculate their variable mortgage rate. Hence, if you have a variable rate mortgage (or  there is a line of credit component attached to your mortgage), you can  expect your mortgage rate (and likely your payment) to increase by 0.25%  in the very near future."



QUESTION #2: What does this actually mean?


"Of course no one likes to hear that their interest rate is increasing, but before panicking, it is important to look at what this actually means in dollars and cents. With this 0.25% increase, your mortgage payment will increase by $13/month for every $100,000 you owe."


"So if you have a $300,000 mortgage, this will increase your mortgage payment by $39-ish per month. Clearly you would rather keep that money in your own pocket, but this is not a scenario where the sky is falling."


Image result for arrow going up with house


QUESTION #3: What to do?


a) "We can lock in your mortgage rate by converting it to a fixed term. When you originally received your mortgage financing you (in most cases) were committing to that particular lender for a 5 year period. If you are now 2 years into that variable rate and wanted to lock into a fixed term, you would be locking into a term of at least 3 years. Make sense? Keep in mind, however, that in many cases, the fixed rate that you would be locking into is still going to be higher than your new increased variable rate."


b) "We can do nothing, and stay the course with a variable rate. Although one can never guarantee what will happen with mortgage rates, history shows that those borrowers with variable rates who stay the course as opposed to locking in mid term still save more money."


SKOTT'S TWO CENTS:


"As a blanket statement, I am encouraging the clients who are calling me to stick with their variable rates. As mentioned, in most cases your new variable rate will still be lower than the fixed rate you would be locking into. If you consider this, in addition to the ultra low penalty that comes with breaking a variable rate mortgage (should it ever happen), I still believe a variable term is the right way to go."


"That being said, every situation is unique. If you have any questions at all about your mortgage please do not hesitate to contact me at 306.201.6500."


I am happy to answer any questions/concerns you may have.


If you are looking for honest, unbiased advice from a mortgage broker in Regina they would love to talk with you!

Skott Phone 306-201-6500  Ryan Phone 306-570-3379 


TMG The Mortgage Group Skott Enns & Ryan Boughen are Trusted Regina Mortgage Brokers