Regina Mortgage Broker and Business Associations

To secure the best interest rates, contact a local Regina Mortgage Broker. Using a local broker in Regina provides you the ability to have a local Real Estate expert that knows and understands local market.

Mortgage Broker Regina Advantages

Using a mortgage broker in Regina poses many benefits, some of which includes:

·        Increased exposure to lenders, mortgage products and best available mortgage rates

·        Only required to pull your credit report once to compare multiple rates and lenders.

·        The mortgage broker can negotiate on your behalf and pass on some of their volume discounts to you.

·        Greater flexibility when finding a time to meet with your broker in-person as mortgage brokers usually have extended hours, outside of the typical bank business hours.

·        Access to your mortgage brokers large amount of industry knowledge as they are not limited to products from one lender.

·        They can help with a number of mortgage solutions such as: debt consolidation, mortgage refinancing, mortgage renewals, home purchase, second homes, and provide one pre-approval.

·        Free service, as mortgage brokers are paid by the lender that provides your mortgage. Exception is working with Private lenders that do not pay finders fees.

Mortgage Broker Association

As provincial associations are not mandated the majority of Regina Mortgage Brokers belong to Mortgage Professionals Canada (formerly CAAMP). Mortgage Professionals Canada is a national mortgage broker industry association which ensures ethical and professional standards are maintained.

Mortgage Broker Licensing in Saskatchewan

For Regina mortgage brokers to be able to conduct business, they must meet the education and experience requirements outlined by the Financial and Consumer Affairs Authority of Saskatchewan. This includes 24 months of experience, the completion of an approved mortgage broker education course, and a criminal record check. The Financial and Consumer Affair Authority of Saskatchewan enforces the Mortgage Brokers Act and Regulations to protect the public and betters the mortgage broker industry.

Other Professional Ties

When purchasing a new home or property in Regina you will come into contact with multiple professionals all who play different roles in the purchase process. The main individuals you will work with are realtors, home inspectors and real estate lawyers.

Realtors are overseen by the Real Estate Council of Saskatchewan. They have access to home sales data (MLS) and can help you find the right property and negotiate with the seller on your behalf.

·        Recommended Realtor in Regina:

• Tim Lipp – Royal LePage Regina Reality
• Brenda Lauf – Re/Max Crown Reality

Home Inspectors provide home inspections to determine the condition of the property. A home inspection will allow you to determine the required maintenance and repairs need on your property. To be a licensed home inspector in Saskatchewan you must meet the requirements laid out by CAHPI Saskatchewan (Canadian Association of Home & Property Inspectors).

·        Recommend Regina Home Inspectors:

• Sheldon Eipert (Certified Master Inspector) – Supreme Inspections

Real Estate Lawyers execute all legal documents such as a purchase agreement and mortgage agreement and ensures your rights as a buyer are upheld.

·        Recommended Lawyers in Regina :

• Jeffrey Norwig – Partner at McDougall Gauley LLP

How to select a local Regina Lawyer — here

How to select a local Regina Realtor — here

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

What is an employment letter?

An employment letter for mortgage purposes is a document provided by your employer that confirms your current employment status and income. Most banks and Financial Institutions verify income as a part of their due diligence processes before extending a mortgage, line of credit, and/or HELOC.

Letter of Employment

Download the letter from employer for mortgage template below:

Word document (.docx)

Google document

Small business owners might not have an employee letter for mortgage template. When you request an employment verification letter provide these attached templates. We can help guide the employer and write an employment verification letter with them.

Why do I need a letter of employment for mortgage?

Lenders must do their due diligence before extending a mortgage to a borrower. One of the details they verify is the borrower’s employment status and income because lack of steady, reliable income which means the odds of the borrower defaulting on the mortgage is greater. Verification of employment and income is normally completed using a confirmation of employment letter from the borrower’s employer. You can usually obtain an employment letter for mortgage purposes by requesting one from your human resources (HR) department or supervisor. By the Mortgage Broker gathering all the documents you require before you apply for a mortgage, you will speed up the application process. A confirmation of employment letter for a bank or another financial institution can take time. The sooner you start the process, the quicker you can secure your mortgage.

What should be included in an employment letter?

Lenders must do their due diligence before extending a mortgage to a borrower. One of the details they verify is the borrower’s employment status and income because lack of steady, reliable income means the odds of the borrower defaulting on the mortgage is greater.

• Employer information:
  Most lenders require your employment letter to be issued on an official company letterhead that contains the company’s name, address, logo and contact details.

• Employment status:
  The letter of employment should contain information about your employment status, including how many hours you work, your job title and how long you’ve been employed.
• Financial information:
  The letter should state whether you’re paid hourly or you’re on a salary, how much you make, your payment cycle and if you get bonuses.
• Date and signature:
  Make sure the letter is dated and signed by a representative of the employer.
• Part-time Employment:
  The employment letter should state guaranteed hours, hourly wage along with your job title and start date.

Will all lenders require a letter to verify employment?

No, but most lenders will require some sort of verification. Whether that’s from a letter of employment, notice of assessment from the CRA, pay stubs or bank statements. If a letter isn’t requested by the lender, they may call or email your employer instead. Alternatively, the lender might give you a form for your employer to complete on your behalf.

Best Mortgage Rates

Want to see what rates are out there? Compare mortgages

Most lenders want to verify your employment as a part of their due diligence. This can involve getting a letter from your employer, having your employer fill out a form or having your lender call or email your employer. Some lenders might skip this process and instead ask for proof of employment via notice of assessments, pay stubs and bank statements. Whichever option they choose, the process is generally pretty simple, but it helps to be prepared.

If you’re just getting started with researching the mortgage process, start your search here.

Frequently asked questions:

How recent does the employment letter need to be?
Most lenders require the employment letter to be no older than 60 days from the date of receipt, but it can vary from lender to lender. If you have a letter that’s more than a couple of months old, ask your lender if you’ll need a new copy that’s been signed and dated more recently.

Can I provide my lender with a faxed copy of the letter, or does it need to be the original?
This will vary depending on the lender’s individual policies and eligibility requirements, but most lenders will accept a faxed copy of the employment letter.

Where can I get a proof of employment letter template?
At the top of this guide, there is a template that you can download and use. Some employers have their own templates since employment verification is a common request from employees. Alternatively, you can attempt to make your own letter, just be sure that it includes all the necessary information.

What if it’s a phone call instead of a letter?
If your lender lets you know that they’ll be calling your employer to verify your employment, give your supervisor (or another employer representative) notice to be courteous. It’s also a good idea to ask your employer if they need any information from you before the call.

Self-Employed will I require a Letter of Employment?
If you are Self-employed general lenders do not require a letter of employment unless you take a salary.

Does the employment letter require all employment history?
No, the lender will only require an employment letter from your current employer(s).

Should I write the letter myself?
No, the employers Human Resource Department, or immediate supervisor should write the employment verification letter.

Contact Information:

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

About DLC Leasing

There are many benefits for a business to choose to finance, rather than purchase equipment. It helps them conserve valuable capital, realize tax advantages and immediately obtain the equipment needed to grow. DLC Leasing originates and services a full range of financing for businesses and professionals. Our unique expertise and experienced support systems give you the ability to tailor financial solutions that suit any and all business requirements.

We have extensive and unique expertise in offering a wide range of leasing products and terms to clients with a variety of credit profiles. We provide leasing products for sole proprietors, partnerships, limited companies, public companies, municipalities and professionals. We structure approvals for start-up operations through to mature companies with prime, near prime or sub-prime credit.

What services does DLC Leasing offer?

1) Commercial Equipment Leasing

Enables businesses to obtain the use of machinery or other equipment on a rental basis while avoiding the need to invest capital in equipment. Ownership rests in the hands of the financial institution or leasing company, while the business has actual use of the equipment.

Who is eligible?

• Incorporated businesses (newly formed or established)
• Proprietorship
• Partnerships
• Professionals (ie, salespeople who are required to purchase their own business assets, individuals who operate a business under their personal name)
• Government entities
• Non-Profit Societies

What is eligible?

Any asset that is new or used, and where the function is for cash-generating business-related purposes. A business can lease practically any asset depending on their credit, including:

• Agricultural equipment
• Point of Sale Systems
• Telephone Systems
• Medical and Dental equipment
• Janitorial equipment (burnishers, duct cleaning equipment, ride-on sweepers)
• Pressure Washing equipment
• Industrial Sewing machines
• Security Systems
• Landscape equipment
• Shelving and Racking solutions
• Embalming and Cremation equipment
• Automotive Repair equipment (hand tools are occasionally considered)
• Computer Hardware and Software
• Forklifts/Compressors/Backhoes, etc
• Sound and Lighting
• Office Furniture and Photocopiers
• Golf Carts (for golf courses or retirement homes)
• Restaurant equipment
• Survey equipment
• Artwork
• Portable Shelters and Modular Office Trailers
• Highway Trucks and Trailers

2) Merchant Cash Advance

A Merchant Cash Advance is a lump-sum payment to a business in exchange for an agreed upon percentage of future credit card and/or debit card sales.

Who is eligible?

• Any business that accepts credit card and/or debit card purchases
• Must have a minimum of $5,000 credit/debit card billings per month
• Minimum 1 year in business

3) Business Factoring

A financing method in which a business owner sells accounts receivables at a discount to a third-party funding source in order to raise capital.

Who is eligible?

Incorporated businesses such as:

• Staffing companies
• Trucking companies
• Manufacturing/Distribution companies
• Apparel companies
• A business with $250,000 + in receivables
• NO – Construction/Software companies/Businesses with ‘trailing services’

4) Vehicle Leasing

Vehicle leasing is the leasing (or the use of) a motor vehicle for a fixed period of time. It is commonly offered by dealers as an alternative to vehicle purchase, but is widely used by businesses as a highly cost-effective method of acquiring vehicles for business, without the need for cash outlay.

Who is eligible?

• Incorporated Businesses
• Proprietorships
• Professionals (that use their vehicle for business use)
• Consumers

Vehicle Leasing Cheat Sheet

* must be under 150,000km ** must be under 8 years

In order to qualify as Business or Commercial use, the vehicle must be used primarily for business, not driving to work. We are not able to finance Taxi or Limo vehicles at this time.

For further details on leasing please feel free to contact me.

CHIP Reverse Mortgage -EVERYTHING YOU NEED TO KNOW

Wouldn’t it be wonderful to be able to have money to do more of the things you love? To be able to have the freedom to pursue things you truly enjoy, especially in your Golden Years? Enter in a CHIP Reverse Mortgage! A Reverse mortgage is a simple and sensible way to unlock the value in your home. This mortgage product can tap into your home’s equity and turn it into cash to allow you to enjoy life on your terms.

A CHIP Reverse Mortgage is a loan secured against the value of the home. With this type of mortgage product, you are not required to make regular mortgage payments. Instead the loan is repaid only when the homeowners no longer live in the home. Keep in mind that there are conditions with this. The homeowner is required to keep the property in good condition and keep up to date on property taxes and insurance.

There are also other qualifications an applicant must meet in order to qualify for this type of mortgage:

1. Homeowners must be age 55 or older
2. You must reside in your home/residence for 6 months out of the year
3. If the title of the property is registered to more than one person, you must be registered as joint tenants, not just as tenants in common. The difference between these two types of shared ownership is what would happen to the property when one of the owners passes on. If the property is joint tenants, the interest of a deceased owner automatically gets transferred to the remaining surviving owner. If it is tenant in common the deceased tenant’s property interest belongs to his or her estate.
4. Although you do not need to have an income to qualify for the borrowed amount as there are no payments required, you will have to stay up to date on paying the property taxes, fire insurance and strata fees (if applicable). The income you have coming in will have to be enough to adequately cover those associated fees.

Now for the big question you are all asking: How much can I borrow?

Well, to answer this there are factors that contribute to the total value. First, your age is a determining factor for this mortgage product. Essentially, the older you are the more you will qualify to borrow. The second factor is in direct relation to the details of your property. For instance, a detached home will qualify to borrow a higher amount than say a condo or townhome. The final factor to consider in this is the maximum amount that can be accessed through a CHIP Reverse Mortgage. The max amount is set at 55%. So, if your property is worth $1,000,000 and you are looking to qualify for the maximum amount, that would give you a mortgage of $550,000. If accessing 55% Loan To Value is not high enough there are private lending options that will consider increasing the Loan To Value up to 65%.

An easy way to take all three of those factors into consideration is to visit www.chipadvisor.ca and enter in your details. This can give you a rough idea of what the maximum amount is that you will be able to receive through a CHIP Reverse Mortgage.

One final note is to consider the costs associated with a CHIP Reverse Mortgage. Yes, there are no required payments due while you are living in your home. However, you should expect the following costs to be associated with this product:

1. An appraisal of your property will be required with an approximate cost of $300.
2. There will be legal costs associated which will be around $1495.00 This amount can be included in the mortgage funds and does not need to be paid out of pocket.
3. Independent legal advice is required on all CHIP Reverse Mortgages. The approximate cost will be $600. However, this again can be included in the mortgage funds and does not need to come out of your pocket.
4. Mortgage Penalties may incur if you are breaking the term of your mortgage.

• In the 1st year it is 5% balance of the funds owing
• In the 2nd year it is 4% balance of the funds owing
• In the 3rd year it is 3% balance of the funds owing
• In the 4th year and beyond it is 3 months interest penalty
• If you are deceased, no penalty

If you are selling to move to a nursing home the penalty fees will be reduced by 50%.

Below, Reverse Mortgage myths are separated from the facts:

1. Myth: The bank owns the home.
Fact: The homeowner always maintains title ownership and control of their home, and they have the freedom to decide when and if they’d like to move or sell.

2. Myth: Those with a reverse mortgage will owe more than their house is worth.
Fact: HomEquity Bank’s conservative lending practices allow clients to take a maximum of 55% (33% on average) of the home’s appraised value. In fact, 99% of HomEquity Bank’s clients have equity remaining in the home when the loan is repaid.

3. Myth: Reverse Mortgages are too expensive because the rates are high.
Fact: HomEquity Bank rates are modestly higher than regular mortgages because there are no payments required. HomEquity Bank offers rates as low as prime +1.25%*.

4. Myth: The bank can force the homeowner to sell or foreclose at any time.
Fact: A reverse mortgage is a lifetime product, and as long as property taxes and insurance are in good standing, the property remains in good condition, and the homeowner is living in the home, the loan won’t be called even if the house decreases in value. Reverse mortgages provide peace-of-mind that the homeowner can stay in their home as long as they’d like.

5. Myth: The homeowner cannot get a reverse mortgage if they have an existing mortgage.
Fact: Many of our clients use a reverse mortgage to pay off their existing mortgage and debts, freeing up cash flow for other things

6. Myth: The homeowner cannot get a reverse mortgage if they have an existing mortgage.
Fact: Many of our clients use a reverse mortgage to pay off their existing mortgage and debts, freeing up cash flow for other things.

7. Myth: Surviving spouses are stuck paying the loan after the homeowner passes  away.
Fact: Surviving spouses can choose to remain in the home without having to make a payment unless they choose to sell the home.

8. Myth: A reverse mortgage is a solution of last resort
Fact: Many Financial professionals recommend a reverse mortgage because it’s a great way to provide financial flexibility. Since it’s tax-free money, it allows retirement savings to last longer.

Below are some common questions and answers:

Will the homeowner owe more than the house is worth?
The homeowner keeps all the equity remaining in the home. In our many years of experience, over 99% of homeowners have money left over when their loan is repaid. The equity remaining depends on the amount borrowed, the value of the home, and the amount of time that’s passed since the reverse mortgage was taken out.

Will the bank own the home?
No. The homeowner retains title and maintains ownership of the home. It’s required for the homeowner to live in the home, pay taxes on time, have property insurance, and maintain the property in good condition.

What if the homeowner has an existing mortgage?
Many of our clients use a reverse mortgage to pay off their existing mortgage and debts.

Should reverse mortgages only be considered as a loan of last resort?
No. Many financial professionals recommend a reverse mortgage to supplement monthly income instead of selling and downsizing, or taking out a conventional mortgage or a line of credit.

What fees are associated with a reverse mortgage?
There are one time fees to arrange a reverse mortgage such as an appraisal fee, fee for independent legal advice as well as our fee for administration, title insurance, and registration. With the exception of the appraisal fee, these fees are paid for with the funding dollars.

What if the homeowner can’t afford payments?
There are no monthly payments required as long as the homeowner is living in the home.

In closing, a CHIP Reverse Mortgage product is a unique product that can be very powerful and useful for a certain demographic. It can allow you tap into the funds that you need while allowing you to remain in your family home. We have seen clients use their home’s equity for a variety of things from supplementing their pension income, to paying off debts and helping out family without depleting their current savings. It offers unique benefits that may just be right for you.

If you are interested or want to learn more, contact me today and I can give you the details that will relate to your unique situation.

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

Financial Mistakes – Top 5 Most Mistakes Homeowners Make With their Mortgage!

Which Financial Mistakes are you guilty of?

1. Not consolidating high interest debt into low interest mortgage
2. Paying “fees” to get the lower rate
3. Not looking at their long term forecast
4. Taking a 5 year rate when 3-4 years can be cheaper
5. Having their mortgage with a lender that has high penalties and restrictive clauses

Not consolidating high interest credit or vehicle loans into their mortgage.
I hear this often “I don’t want to use the equity in my home” or “I can pay it off”. This is probably one of the biggest financial mistakes clients make. Many times when people end up with debts it is due to inefficient budgeting and understanding what your income is vs your debt payments are. There are many folks where making their minimum monthly payment is the driving factor in their monthly budget. Making minimum payments can take you YEARS to pay off and soon after people get mortgages, they are buying that new car at 0% interest and $600 month payments, then the roof or hot water tank goes and they put another $15,000 on credit, then someone gets laid off and boom…can’t make all the payments on all those debts that it took a 2 income family to make. It’s a true reality. Let’s look at an example:

Paying Fees to get the lower rate.
Dear rate chasers…they catch up with you somewhere. Nothing comes for free. Let’s face it, you go to the bank and their goal is to make money! A lender that offers you a 4.49% with a $2500 vs a 4.64% with no fee and you think “yes, score what a great rate!” Hold your coins… as you could be walking away poorer as the banker didn’t run the bottom line numbers for you. Chasing rates can cost you more money in the long run.

Your $500,000 mortgage was offered with two rates for the business for self guy who needed a mortgage where they didn’t look at the income so much: 4.49% and $2500 fee and $4.64% no fee. Lets see what it really looks like for a 2 year mortgage.

$502,500 (built in the $2500 fee) 4.49% – payments $2778 per month – $479,563 owing in 2 years
Total payments: $66,672
$500,000 (no fee) 4.64% – payments $2806 per month – $477,634 owing in 2 years
Total payments: $67,344.

Wait? So by taking the lower rate with the fee means I owe $1929 MORE in 2 years and only saved $672 in overall payments?

The long term financial planning side.
I counsel many of my clients to take 2-3 year year terms for a variety of reasons.

• Better Rates
• Lower Payments
• Capitalizing on the equity in your home to pay off a car loan or upcoming wedding. Did you know the average homeowner refinances every 3 years?

Taking a 5 year when 3 and 4 year rates might be a better option.
Many times the 2-4 year rates can be significantly lower than the 5 year rates. Remember, the bank wants money and the longer you take the term, the more they make. True, many folks prefer or fit the 5 year terms, but many don’t. Worrying about where rates will be in 3-5 years from now should be a question, but not always the guiding factor in you “today” budget. Here is an example of a $450,000 mortgage and what the difference in what you will owe on a 3 year term.

2.34% – payments are $990 every two weeks = $402,578 owing in 3 years
2.59% – payments are $1018 ever two weeks = $403,604 owing in 3 years.
Your paying $28 MORE every two weeks ($2184 total) and owe $1026 MORE in 3 years. Total LOSS $3210! Planning is key. Stop giving away your hard earned money!

Mortgage monster is in the penalties you pay when you fail to plan.
Since many families today are getting in with 5-10% as their down payment. If you got your mortgage with many of the traditional banks, your current mortgage is $403,750, and you need to break your mortgage early your potential penalty could be $12,672! Going with a mortgage broker who can put you with a lender that has a similar rate your penalty would be significantly different – almost $10,000 dollars different!

The Canadian Government offers several Financial Tools and Debt Calculators here.

Get a plan today to avoid future financial mistakes! If you have any questions, please contact me to discuss your specific scenario. APPLY online.

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