Trusted Tips and Resources

Trusted Tips & Resources

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!



Emerald Park Homes Trusted Regina home builders 6 things they do to make sure your new home is energy efficient

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.

In addition to building our homes to be visually appealing and structurally sound, Emerald Park Homes proudly build homes that are practical with energy efficient features that are designed to reduce your environmental footprint and save you money. From the air that you breathe to the systems that you use, your home is safer, healthier, and more durable if it is built with superior, energy efficient building products. Not only do energy efficient homes help out our environment and save you money in the long run, but they also make your home healthier for you and your family.


6 things Emerald Park Homes does to make sure their homes are energy efficient:

1. Energy Efficient Windows 

Our homes feature triple glazed, low e windows filled with argon gas that are designed to maximize the energy efficiency of your home by preventing air and water leakage with their five-seal defense system. To take it even further, all windows and doors are sealed with a top of the line waterproof membrane as well as insulated with spray foam to ensure they are air tight.



2. Air Tight Seal 

You want your home to be as air tight as possible to eliminate drafts and maintain an even temperature throughout your home. This means that it is important to properly seal around all windows and doors, vents and electrical outlets. Our homes come standard with an R60 blown in insulation, and we go above the standard building code for our climate by using spray foam insulation on the joist ends for an even more air tight seal. Spray foam insulation throughout the home is an extra that we encourage anyone who is willing to pay a little more up front to do to save a lot more money in the long run. The lower utility bills as a result of an air tight home help with the cost of home-ownership and they also add re-sale value to your home.