15 Jan

Consolidate Debt Into a Mortgage

Mortgage Tips

Posted by: Kim Seifert

Is It a Good Idea to Consolidate Debt Into a Mortgage?

With Blue Monday (January 16, 2023) tomorrow we need to address if it is a Good Idea to Consolidate Debt Into a Mortgage. Building up a case to refinance your mortgage for debt consolidation purposes can depend on a number of key factors. The amount of equity you’ve got in your home can dictate the total amount of debt you’ll be able to pay off.
Blue Monday is the name given to a day in January, typically the third Monday of the month as it is the most depressing day of the year. It is also around the time people start receiving the Christmas Credit Card Bills, returning to their regular work schedule.

Here are a Few Reasons to Consider Refinancing:

  1. HELOC/ Unsecured Lines of Credit interest rates have increased significantly (variable-rate)
  2. Having trouble making the minimum Credit Card Payments, Personal Loans or paying your Vehicle Loan?
  3. Need to Free up funds to purchase life necessities like food, utilities, schooling, etc. (Monthly Budget)
  4. Currently in a variable-rate mortgage, want to stabilize your payments
  5. Lower Interest Rates then on LOC’s (average 7.5%-9%) and Credit Cards (average 17%-21%)
  6. Ease Money Stress on Close Relationships. Money issues often are one of the top disputes in a household. Especially, if one person is a spender.
  7. Considering missing mortgage payments or defaulting on your mortgage.

Below are Good Guidelines to Follow:

When it comes to your home expenses and overall monthly budget, the goal is the costs to maintain your home do not exceed 35% of your total monthly income.
Monthly Budget: To help you keep track of your finances, consider breaking up your monthly budget into the following categories.
  1. Housing – 35% of your monthly income
  2. Transit – 15% of your monthly income
  3. Debt – 15% of your monthly income
  4. Savings – 10% of your monthly income
  5. Life – 25% of your monthly income

Because everyone’s debt is a little different, you’ll need to put together an accurate monthly budget to know how much cash is coming in and going out.
CMHC Debt Service Calculator — Compare your monthly debt payments and housing expenses to your gross household income. Here 

Your Next Steps for Debt Consolidation: It’s key to remember that even though your consumer debt may feel overwhelming, there are options available to help reduce that monthly burden.

Consolidate Debt Into a Mortgage – Other Steps You Should Consider:

  1. Research all your financial options thoroughly before taking any action
  2. Review your monthly cash flow and trim away any unnecessary spending first
  3. Talk to a Mortgage Broker about current refinancing rates, product options, potential early payout penalties, etc.
  4. Build a realistic plan that gets you out of debt in the least expensive way

Let’s Talk Mortgages… Refinance Calculators

15 Jan

80-year Amortization at CIBC

Latest News

Posted by: Kim Seifert

80-year Amortization at CIBC?

80-year Amortization at CIBC were caused by CIBC not increasing monthly mortgage payments on their Variable-rate products despite hitting the trigger point. Their actual amortization period has even hit 80 years for some clients. CIBC customers are still paying the same amount which isn’t even covering their interest anymore.
If this is you… contact CIBC or me and discuss what you can do to change this. Knowing your lender is as important as the rate you received!

Things you could do:

  1. Increase your payments accordingly
  2. Lump-sum payment
  3. Convert your variable-rate mortgage into a fixed rate mortgage (penalty free)
  4. Break your current variable-rate mortgage and shop for a better rate and product that suits your monthly budget (3-month interest penalty)
All ways to off-set your 80-year Amortization at CIBC.

Let’s Talk Mortgages… Contact

15 Jan

Prohibition on the Purchase of Residential Property by Non-Canadians Act

Latest News

Posted by: Kim Seifert

Prohibition on the Purchase of Residential Property by Non-Canadians Act:

On January 1, 2023, the Prohibition on the Purchase of Residential Property by Non-Canadians Act is in effect for a period of two years.

This means that certain customers are not allowed to buy residential property in Canada, and Brokers should not submit applications for mortgage, Home Equity financing for a purchase.
Let’s Talk Mortgages.

The stated intention of the Act is to make residential homes more affordable for Canadians. To that end, Section 4 of the Act provides that “it is prohibited for a Non-Canadian to purchase, directly, or indirectly, any residential property.”

The Act defines Non-Canadian as:

  1. an individual who is neither a Canadian citizen nor a person registered as an Indian under the Indian Act nor a permanent resident;
  2. a corporation that is incorporated otherwise than under the laws of Canada or a province;
  3. a corporation incorporated under the laws of Canada or a province whose shares are not listed on a stock exchange in Canada and that is controlled by a person referred to in paragraph (1) or (2); and
  4. a prescribed person or entity,

The Act defines “residential property” as:

  1. a detached house or similar building, containing not more than three dwelling units;
  2. a part of a building that is a semi-detached house, rowhouse unit, residential condominium unit or other similar premises;
  3. prescribed real property or immovable,

Section 6 of the Act makes it an offence for a Non-Canadian to purchase residential property covered by the Act. It also creates an offence for every individual that counsels, induces, aids or abets a non-Canadian to purchase any residential property covered by the Act knowing that the non-Canadian is prohibited. All such persons are liable on summary conviction to a fine of not more that $10,000.

For More Details: Click Here

Updated March 2023:

Prohibition on the Purchase of Residential Property by Non-Canadians Act Changes:

➡️Work permit holders can buy homes.

➡️Non-Canadians can buy land for residential/mixed-use.

➡️Non-Canadians can buy residential property for development.

➡️Corporation foreign control threshold to 10% from 3%.

Let’s Talk Mortgages… Apply Here

15 Jan

Mortgage Assets

Mortgage Tips

Posted by: Kim Seifert

Why mortgage lenders ask for proof of Mortgage Assets when applying for a mortgage?

Mortgage Assets show your net worth and allows a lenders to get a better picture of how you will make your mortgage payments, down payment and closing costs.

In addition to considering your employment history and income, the lender will also consider whether you have any additional assets that you could convert into cash. That’s because these assets provide you with a potential source of cash flow in case of a job disruption or job loss – could you stay afloat for a few months?

What are considered Mortgage Assets?

  1. Savings/ Chequing Account Balances.
  2. Investments (RRSP, TFSA, Bonds, Mutual Funds, etc.).
  3. Life Insurance (Private & Work).
  4. Pensions.
  5. Vehicles.
  6. Properties Owned.

What Information will you need to provide for Assets?

  1. Investments/ Savings/ RRSP/ TFSA/ Pension/ Life Insurance: Institutions Name, Type of Investment, Approximate Value.
  2. Vehicles: Make/ Model, Year, Approximate Value.

Generally the lenders do not ask for supporting documents on Assets unless they are being used for Down Payment and Closing Costs. Required Supporting Documents:

  1. 90-day bank History showing available funds.
  2. Must show your name, Account Number and Full 90-day History.
  3. Nothing can be edited or Blanked out.
  4. If moving funds from Investments accounts to general accounts you must show a 90-day history for each account following the funds from one account to another.

What are the general requirements to qualify for homeowner mortgage loan insurance?

Find out which requirements you must meet to qualify for CMHC’s Homeowner Mortgage Loan Insurance. Here

Let’s Talk Mortgages… Apply Now

5 Oct

First-time Home Buyer Incentive

Mortgage Tips

Posted by: Kim Seifert

First-time Home Buyer Incentive

The First-Time Home Buyer Incentive helps qualified first-time homebuyers reduce their monthly mortgage payments without adding to their financial burdens.

What does the First-Time Home Buyer Incentive offer? The incentive is a shared-equity mortgage with the Government of Canada.

  • 5% or 10% for a first-time buyer’s purchase of a newly constructed home
  • 5% for a first-time buyer’s purchase of a resale (existing) home
  • 5% for a first-time buyer’s purchase of a new or resale mobile/manufactured home

The Incentive’s shared-equity mortgage is one where the government has a shared investment in the home. As a result, the government shares in both the upside and downside of the property value.

By obtaining the Incentive, the borrower may not have to save as much of a down payment to be able to afford the payments associated with the mortgage. The effect of the larger down payment is a smaller mortgage, and, ultimately, lower monthly costs.

The homebuyer will have to repay the Incentive based on the property’s fair market value at the time of repayment. If a homebuyer received a 5% Incentive, they would repay 5% of the home’s value at repayment. If a homebuyer received a 10% Incentive, they would repay 10% of the home’s value at repayment.

The homebuyer must repay the Incentive after 25 years, or when the property is sold, whichever comes first. The homebuyer can also repay the Incentive in full any time before, without a pre-payment penalty.

LEARN MORE ABOUT THE FIRST-TIME HOME BUYER INCENTIVE

Looking for homebuying tools and resources?

Knowing what to expect throughout the entire homebuying process can lead to more well-informed decisions, and a better homebuying experience overall.

Check out all the homebuying tools and resources below to help you make your homebuying decisions with confidence.

 Guides

First-time Homebuyer Mortgage Process

Calculators

Other useful information

  • Your Credit Report – Learn more about the simple steps you can take to maintain a good credit history and improve your chances of being approved for a mortgage.
  • Mortgage Planning Tips – See how planning your mortgage in advance can help you save money in the long run.
  • Mortgage Fraud – Read these valuable insights that can help protect you from mortgage fraud.

Ready to Apply for a Mortgage? Apply Now

Mortgage Broker Regina

 

 

Kim Seifert
Mortgage Broker  lic# 316147
M 306-533-4492 | F 306-545-7446| kseifert@dominionlending.ca  
The Mortgage Firm  lic# 315912
3889 Arcola Ave E, Regina, SK S4V 1P5

19 Sep

Lawyers in Regina

Mortgage Tips

Posted by: Kim Seifert

5 Tips on How to Select a Regina Real Estate Lawyer

Lawyers in Regina — Real estate and property law comprises the financing aspects of property: Such as mortgages, liens, and foreclosures.

If you have purchased or are thinking about purchasing property, whether you are considering a house, a commercial building or a piece of land, you may want to consult with a real estate lawyer in order to protect yourself from any unforeseen liabilities that might be attached to the property.

Real estate contracts tend to be full of legal jargon that can be difficult for the average person to understand. However, if you have selected the right attorney with years of experience to assist you with the real estate transaction, he or she can help relieve you from the stress of the deal by ensuring that all of your documents are in order and ready.

Selecting the right attorney will go a long way to ensuring that your house buying or selling process is a smooth one.

Lawyer in Regina

1. Choose a Real Estate lawyer

Not all lawyers in Regina practice Real Estate law!

It seems obvious, but some clients make the mistake of addressing any lawyer. For example, some might choose a family friend who helped with their divorce. Not every lawyer can help you in Real Estate.

Real Estate Legislation is complex and constantly changing and lawyers should be up-to-date on all changes. So, whether you are purchasing a new home, refinancing a mortgage, or listing your home for sale it is important that the lawyer you select is actively practicing Real Estate law.

2. Get Referrals from Mortgage Brokers & Realtors

Mortgage Brokers and Realtors have first hand experience working with Real Estate Lawyers and have an intimate understanding of how they treat their clients, legal service fees, and how quickly and efficiently they work.

The lawyers Legal Assistant plays an extremely important part in the Real Estate transaction often doing all the upfront work. Working with each lenders funding department, ISC (Land Titles), Mortgage Brokers, and Realtors. A Legal Assistant that is experienced in Real Estate transactions is as important as working with an experienced lawyer.

3. Contact the Saskatchewan Bar Association

The Saskatchewan Bar Association will be able to provide you with a list of attorneys in the Regina area that specializes in Real Estate law. Using the Saskatchewan Bar Association as a resource has the added benefit of ensuring that the attorney you choose is properly licensed to practice law in Regina. You typically can either call the bar association or visit their website to find a list of Real Estate lawyers in Regina

4. Examine Regina Lawyers/ Real Estate reviews

Many resources exist online that allow clients to provide reviews of attorneys whom they have hired to represent them in different types of legal matters. By reviewing other individuals’ experiences with a particular attorney, you can judge whether an attorney might be the right fit for you.

5. When do you need to provide the lawyers name and contact information

Lenders will request your lawyers contact information when submitting the signed mortgage commitment with the Mortgage Broker. Required for lender solicitor instructions.

How to select a local Regina Realtor — here

How to select a local Regina Mortgage Broker — here

Mortgage Broker Regina

 

Kim Seifert
Mortgage Broker  lic# 316147
M 306-533-4492 | F 306-545-7446| kseifert@dominionlending.ca  
The Mortgage Firm  lic# 315912
3889 Arcola Ave E, Regina, SK S4V 1P5

19 Sep

Realtor in Regina

Mortgage Tips

Posted by: Kim Seifert

6 Tips on How to Find a Realtor in Regina

Whether you’re buying or selling a house, understanding how to find a the Best Realtor in Regina is essential and probably personal as well. Your agent will help you through all steps of the process and answer the countless technical, tactical, and financial questions that arise.

So you don’t waste hours Googling for answers that a good real estate agent will have a clear handle on the ins and outs of the local housing market. Below are some of the best resources to turn to find someone you know you can trust.

Realtor.ca

1. Find a Realtor in Regina with the most listings

One simple, somewhat passive way to find the Best Regina Realtor is to identify which agents have the most listings in Regina and surrounding areas. Experience with many clients indicates a certain amount of ambition and hustle. You can review current MLS listings for Regina at Realtor.ca

Just because a Realtor has the most Real Estate listings in the area doesn’t mean they are the best Realtor for you!

2. Get referrals from family, friends, other Regina Real Estate Professionals

Probably the most common strategy for finding a Real Estate agent in Regina is through word of mouth. Ask your family, friends, neighbours or other Real Estate professionals (ie. mortgage brokers, lawyers) who they recommend or have used before. Make sure to ask “would you use them again?”

The home buying process is an emotional time for many. Be careful using close friends and/or family as this could lead to conflict in the home buying process.

  • Finding the “right” Realtor is personal and subjective.
  • May work if the person’s sale or purchase was similar to yours.
  • Don’t assume one size fits all, even if their experience lines up with yours.
  • Compare the referral with 1-2 other realtors.
  • Be careful hiring agents you know personally, set ground rules.
  • Mortgage Brokers, Lawyers have first hand experience working with Realtors and have an intimate understanding of how they treat their clients and how they work with other professionals.

3. Get a referral from your previous Realtor

If you’re moving to Regina, you could reach out to your previous Realtor for a referral. Most brokerages have a network of Real Estate agents they use across the Canada, and they can refer you to someone who would likely be a good fit. Understand, Realtors usually get a referral fee for recommending a local Realtor.

4. Look for community leadership

Here’s an outside-the-box approach: Look beyond the performance numbers and find agents who have actually invested in the Regina area. Work with someone who believes in the community and does more than sell homes. Someone who participates in local schools, sports, developing businesses, or charities.

5. Evaluate what ‘good/ best’ means to you

Your idea of a good/ best real estate agent is probably different from someone else’s, so it’s important to make a list of qualities you most desire in the person you hire to sell or find you a home.

Does “good or best” mean they’re the most ethical, have the highest sale volume, or have the greatest experience? Do you want an agent who takes charge, or one who focuses more on making you feel heard? Is customer service the highest priority? Avoid superficial “best local contests” as well. They are just made up competitions to get more traffic to media providers.

6. Make sure the Regina Realtor’s license is up-to-date

Before you sign with an Realtor check if there Realtor’s license is up-to-date. To check that the license is current, go to the Canadian Real Estate Association CREA or Saskatchewan Realtors Association SRA websites. You will also be able to see if the agent has faced any disciplinary action.

In conclusion

Avoid using platforms like Zillow and Google to find Realtors as the huge number of search results can make it inefficient and overwhelming. It is also hard to tell the top agents from agents who paid for more visibility. These tools are better for vetting agents than finding them.

So, finding the Best Real Estate Agent in Regina is a personal decision and shouldn’t be taken lightly. Feel free to reach out to me and I can provide a list of local Regina Realtors that I have personally worked with and know first hand how they treat their clients and how they work with other Real Estate Professionals. If you are looking for other advice please checkout my Blog section.

How to select a Lawyers in Regina— here

How to select a local Regina Mortgage Broker — here

Mortgage Broker Regina

 

 

Kim Seifert
Mortgage Broker  lic# 316147
M 306-533-4492 | F 306-545-7446| kseifert@dominionlending.ca  
The Mortgage Firm  lic# 315912
3889 Arcola Ave E, Regina, SK S4V 1P5

16 Sep

Mortgage While on Maternity Leave

Mortgage Tips

Posted by: Kim Seifert

Can you get a mortgage while on maternity leave in Canada?

Simple answer is Yes you can qualify for a maternity leave mortgage. In general, you will qualify if you provide a letter of employment from your employer. It must confirm your current Rate of Pay, Guaranteed Hours, and finally your Expected Return Date. NOTE: Not every mortgage lender has the same rules regarding Parental Leave.

What are the mortgage rules for maternity leave?

  • Credit score over 640 (anything less usually requires a strong co-signer — immediate family member – ie: spouse/ significant other, parents, siblings, grandparents).
  • 100% of employment income can be used for the mortgage loan provided you are returning to work within 12 months of the closing date.
  • 60% of your income will be used if you are returning to work more than 12 months after closing.
  • Letter of Employment stating return to work date.
  • Self-employed, or you are not salary or guaranteed hours you will be required to use 2 years’ T4’s/ NOAs to qualify at the percentages noted above.
  • Whether you are pregnant or on maternity leave lenders can not discriminate or prevent you from qualifying for mortgage financing.

What you require on the Letter of Employment?

In order to evaluate your application using 100% of your typical income you must provide the bank/ financial institution with a ‘return to work’ letter. It must state your employment status. This letter must include:

  • Your original start date.
  • Plan to return to work date.
  • Job title and income information.
  • A clause stating that you will be returning at your full employment income. Regardless of previous years’ T4s or Notice of Assessments.
  • Must be on company letter head.
  • Must have current date and contact information listed.

For more information on writing an Employment Letter check out my article here.

Letter of Employment

What can working with a mortgage broker do for me?

A Mortgage Advisor can help guide you through applying for a mortgage pre-approval. Moreover, a broker will help find a lender that suites your immediate requirements. Most Realtors (before showing you homes on the market) will also require a Mortgage Pre-approval letter confirming that you qualify for a mortgage.

As a Brokerage with access to over 40 lenders, we are able to submit your mortgage application to lenders that will take 100% of your usual income into account (NOTE: if you will be returning to work within 12 months after your maternity leave starts). This means you will qualify for the same amount of financing as you would if you were not on leave.

You will also have access to the best available mortgage rates.

Maternity leave does not affect your mortgage application. Simply contact our office for a Free Consultation and discuss your options for buying a house, fixing bad credit, using maternity benefits, and calculating your mortgage payments for your parental leave lower income.

Mortgage Broker Regina

 


Kim Seifert

Mortgage Broker  lic# 316147

M 306-533-4492 | F 306-545-7446| kseifert@dominionlending.ca  
The Mortgage Firm  lic# 315912
3889 Arcola Ave E, Regina, SK S4V 1P5

16 Sep

Purchase Plus Improvements Mortgage

Mortgage Tips

Posted by: Kim Seifert

What is a Purchase Plus Improvements Mortgage?

Purchase Plus Improvements Mortgage helps qualified homebuyers carry home improvement costs into their mortgage with as little as 5% down. The Purchase Plus Improvements program is designed for borrowers who want to make improvements to their home immediately after taking possession of the purchased property. The Improvements Program allows homeowners to do so with one manageable mortgage payment.

The Purchase Plus Improvements and Refinance Plus Improvements programs are administered through the three main mortgage default insurers (purchase plus improvements CMHC, Sagen improvement program, Canada Guaranty Improvement program).

Purchase Plus Improvements Mortgage

What does this mortgage allow?

  • The cost of home renovations are added to the home purchase price. Mortgages are available up to 95% Loan-to-Value (LTV) or refinances up to 80% LTV. (NOTE: you can only refinance in Canada up to 80% LTV).
  • Maximum of $40K for home improvements or up to 20% of the appraised property value.
  • Allows renovations that will improve the value of the property. It will not allow items that can be removed from the home. For example: appliances, blinds (shutters are considered built in). Garages, roofing, fencing, upgraded kitchen, bathroom renovations, windows, paint, flooring, adding on to the home, and landscaping are just some of the more popular improvements people complete.
  • The home improvements can be completed by a professional contractor or DIY. (NOTE: You can not charge for your own labour).
  • Amortization up to 25 or 30 years. This depends on the lender and if the mortgage is high ratio or conventional.
  • Maximum 120 days post funding to complete the improvements. (NOTE: Some exceptions apply, especially if COVID restrictions are delaying delivery of material).
  • Same great Mortgage Rates apply.

How does the Purchase Plus Improvements Program work?

Step 1: Once you have an accepted Offer to Purchase work with your Regina Mortgage Broker to determine what renovations need to be completed, gather a rough idea of how much they will cost, and what CMHC, Sagen, Canada Guaranty will allow.

Step 2: Acquire improvement quotes from professional contractors on company letter head and supply to the lender and mortgage insurer. Make sure the contractor quotes cover all anticipated costs and contain a detailed list of materials and labour costs as you can not go back later and ask for more funds.

Step 3: Once improvement quotes have been summitted to the lender they will send an appraiser to do an “As-Is” & “As-Improved” appraisal.

Step 4: Your local Regina Mortgage Broker will get your new mortgage approved based on the homes ‘As-Improved’ value.

Step 5: Once the sale of your new home has concluded and you take possession of your new home, you can immediately start the renovations that were submitted to the lender. You have to stick to the lender approved renovations. Since the lender will not release the funds until after the renovations have been completed you can use personal cash, credit cards, or lines of credit to pay for the improvements upfront.

Step 6: Notify the Mortgage Professional once you are getting close to completing the improvements. Supply the Mortgage Broker with the paid invoices and the broker will submit to the lender for their review. This will trigger the lender and mortgage insurer to request a final inspection to verify the home improvements have been completed as directed.

Step 7: Once the lender receives the final inspection report they will direct the lawyer to release the funds. Usually, the lawyer will also be instructed to pay out any credit cards, lines of credit that have been used to pay for the home renovations. If any of the contractors are still expecting payment this will also be looked after.

Step 8: With the upgrades done, and all the mortgage details taken care of, you can fully enjoy your new home.

Notes:

  • You have access to the same great mortgage interest rates for which you qualify. There are no hidden costs or mortgage rate increases for this program (NOTE: some lenders will request the borrower to pay for the appraisals — ask your mortgage professional upfront).
  • Have firm price quotes prior to finalizing your mortgage, this will speed up the process.
  • You will not receive any funds for the renovations until after the work is completed and reviewed by the bank and/or financial institution.

Conclusion

Very solid program and your local Regina Mortgage Broker will walk you through each step along the way. So, thinking of purchasing a home remember that their are Purchase Plus Improvement Programs available to you.

Not buying a home at this time? But you still want to renovate? No worries, as the Refinance Plus Improvements program is there for you. Remember the lowest rates available for your next mortgage loan still apply and no hidden fees.

Mortgage Broker Regina

 

 

Kim Seifert
Mortgage Broker  lic# 316147
M 306-533-4492 | F 306-545-7446| kseifert@dominionlending.ca  
The Mortgage Firm  lic# 315912
3889 Arcola Ave E, Regina, SK S4V 1P5