There has been a lot of buzz about the Renewal Cliff in the media lately.  What is it?  It is a concern that borrowers will not be able to afford their mortgage renewal in the new higher interest rate environment.

For example, if you purchased a home for $350,000 in Winnipeg, MB in January 2019 with 5% down, you would have a mortgage interest rate near 3.24% the monthly payment would have been $1,652/month.
The mortgage will be renewed in January 2024 with a balance of approximately $292,010 and 20 years left remaining on the amortization.   Most banks are offering a renewal rate of 5.89% or higher!  This will result in a payment of approximately $2,062 per month, an increase of $410.00/month or about 25%.

There is a fear that in the slowing economy, many borrowers will face work shortages compounded with higher mortgage payments.

What can be done?  Start shopping for a better rate as soon as you can, we recommend 7-8 months before your mortgage renewal.  Using the same example above Mainstream Mortgage could get these borrowers a rate of 4.99% for a 5-Year Fixed Rate (at the time of writing and subject to change).  This would lower the renewed mortgage payment to $1,917 per month, saving the borrowers $144/month in payment, $12,400 in unnecessary interest over the 5 Year Term, and allow them to pay an extra $3,740 in principal.  It always pays to call us to get a 2nd opinion.

Don’t Miss the December 31, 2023 FHSA Contribution Deadline!

Are you dreaming of owning your first home? The First Time Home Buyers Savings Account (FHSA) might just be the key to turning that dream into reality. As the year comes to a close, it’s crucial to remind ourselves about the FHSA and the upcoming December 31, 2023 contribution deadline. Let’s delve into the benefits of FHSA and why you should consider making your contributions before the year ends!

What is FHSA?

FHSA – The Tax-Free First Home Savings Account is a new registered account that provides tax-free savings for first-time home buyers. No repayment is required. No withdrawal limit. Maximum annual contributions of $8,000 and a lifetime total of $40,000.  Please visit the GoC website for more information https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/first-home-savings-account.html

Key Benefits:

1. Tax Advantages: FHSA contributions are tax-deductible, meaning you can lower your taxable income by contributing to the account. This provides an immediate financial benefit, making it an attractive option for those looking to save on taxes while saving for their first home.
2. Earnings Grow Tax-Free: The interest or investment gains within the FHSA accumulate tax-free. This allows your savings to grow more efficiently over time, helping you reach your homeownership goal faster.
3. First Home Purchase Withdrawal: One of the most significant advantages is that you can withdraw funds from the FHSA for the sole purpose of purchasing your first home. These withdrawals are typically exempt from federal taxes, further enhancing the financial benefits of the account.

December 31, 2023 Deadline:

As the year comes to a close, it’s important to remember that the deadline for contributing to your FHSA for the current tax year is December 31, 2023. If you haven’t maxed out your contributions or started an account yet, now is the time to act! Making contributions before the deadline ensures that you can take full advantage of the tax benefits for the current year.  While there is a carryforward option it is only limited to 1 year.  It is recommended that if you can take advantage of the $8,000 contribution limit you do so in each tax year!

How to Contribute:

1. Check Contribution Limits: Be aware of the annual contribution limits for FHSA ($8,000 per year to a life time limit of $40,000). Understanding these limits ensures that you maximize your savings while staying within the prescribed boundaries.
   https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/first-home-savings-account.html
2. Review Eligibility: Confirm your eligibility for FHSA contributions. Typically, these accounts are available to individuals who have not owned a home in the past or have not owned one within a specified time frame.
   https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/first-home-savings-account/opening-closing-and-fhsa.html
3. Contact Your Financial Institution: If you don’t have an FHSA yet, get in touch with your financial institution to set one up. If you already have an account, confirm the contribution process and any additional details.

The First Time Home Buyers Savings Account is a valuable resource for those on the path to homeownership. With the December 31, 2023 deadline approaching, now is the time to take action. By contributing to your FHSA before the end of the year, you not only maximize your potential tax benefits but also bring yourself one step closer to unlocking the door to your dream home.

If you need a referral to a financial planner or require any assistance with your mortgage pre-approval, please contact us today!

In the unpredictable world of mortgages, where dreams of homeownership can quickly turn into nightmares, the right lender can make all the difference. At Mainstream Mortgages, we pride ourselves on turning challenges into success stories. Let’s dive into the experiences of our recent clients and explore why choosing Mainstream Mortgages is a decision worth celebrating.

The Rejected Professional:

Our journey begins with a client who, despite having a stable income and excellent credit, faced rejection from their bank solely due to their profession. At Mainstream Mortgages, we believe in inclusivity, understanding that everyone deserves a chance at homeownership. By leveraging our vast network and diverse lending options, we were able to secure a mortgage for this client, turning their initial setback into a victory. 🏠🌐

The Pre-Approval Pitfall:

Imagine selling your home with the confidence of a pre-approval from your bank, only to have the rug pulled out from under you later. This was an unfortunate reality for a couple who trusted their bank’s pre-approval but faced a sudden denial. Mainstream Mortgages offers a more reliable approach. Our thorough evaluation ensures that pre-approvals are not just promises but solid foundations for your real estate journey. 🚫💔

The Interest Rate Rescuers:

Sometimes, approval comes at a cost – a high interest rate that can burden homeowners for years. One couple found themselves in this predicament but reached out to Mainstream Mortgages for a lifeline. Through our expertise and dedication, we secured a mortgage with almost 1% less on a 5-year fixed term, saving them substantial money over the life of their loan( $107/month, $8,814 in unnecessary interests, and $2,377 of principle). At Mainstream Mortgages, we believe in empowering our clients with the best possible financial solutions. 💲🌟

Why Mainstream Mortgages?

1. Inclusive Approach: We welcome clients from all walks of life, ensuring that your profession or unique circumstances won’t hinder your homeownership dreams. 🌍🤝
2. Reliable Pre-Approvals: Our commitment to transparency and accuracy means that when we pre-approve you, you can trust in the strength of that approval. ✔️🏡
3. Savings on Interest Rates: Our dedicated team works tirelessly to secure the most favorable terms for your mortgage, ensuring you save money in the long run. 💰📉
4. Expertise and Support: With Mainstream Mortgages, you’re not just a client; you’re a partner in your homeownership journey. Our experts are here to guide you every step of the way. 🤓🤲

In the ever-changing landscape of mortgages, Mainstream Mortgages stands as a beacon of reliability, turning obstacles into opportunities for our clients. Choose us for a seamless and empowering homeownership experience. 🏡✨

We would love to help you with your mortgage story

The holiday season is a time of joy, celebration, and often, increased spending. As we revel in the festive spirit, it’s crucial to strike a balance between enjoying the holidays and being mindful of our financial responsibilities, especially when it comes to mortgage obligations. In this blog post, we’ll explore smart strategies for managing holiday spending without compromising your long-term financial health, along with tips to navigate your mortgage during this season of giving.

Holiday Spending Tips:

1. Create a Budget: Before diving into holiday shopping, establish a budget that considers your income, existing financial commitments, and your mortgage payment. Allocate specific amounts for gifts, decorations, and festivities to ensure you don’t overspend.
2. Make a List and Check It Twice: Prepare a detailed list of the gifts you plan to purchase and stick to it. This prevents impulse buying and helps you stay within your budget. Consider thoughtful, meaningful gifts rather than expensive ones.
3. Take Advantage of Sales and Discounts And Support Small Business: Keep an eye out for holiday sales, discounts, and promotions. Black Friday and Cyber Monday, for example, offer excellent opportunities to save on gifts and other holiday essentials.
4. Consider DIY or Second-Hand Gifts: Personalized, do-it-yourself gifts can be heartfelt and budget-friendly. Explore your creative side and craft unique presents that reflect the season’s spirit.
5. Secret Santa or Gift Exchanges: If you have a large circle of friends or family, suggest a Secret Santa or gift exchange. This way, everyone receives a meaningful gift without the financial strain of buying for everyone.

Mortgage Tips:

1. Prioritize Your Mortgage Payment: While the holidays may bring additional expenses, prioritize your mortgage payment. Ensure that you have enough funds set aside to cover this essential obligation. Late payments can negatively impact your credit score and financial stability.
2. Communicate with Your Lender: If you anticipate financial challenges during the holidays, communicate with your mortgage lender in advance. Some lenders may offer temporary relief or alternative payment arrangements to help you navigate the season.
3. Avoid Taking on Additional Debt: While using credit cards for holiday purchases may be tempting, be cautious about accumulating more debt. High credit card balances can impact your credit score and financial well-being, potentially affecting your mortgage terms.
4. Review Your Mortgage Terms With Us: Take this to book a mortgage check-up with us. Understand the interest rates, payment schedules, and any potential adjustments. If applicable, explore opportunities to refinance for better terms.

The holiday season is a wonderful time to create lasting memories with loved ones. By approaching holiday spending with a thoughtful budget and implementing smart mortgage tips, you can enjoy the festivities without compromising your financial stability. Remember, a balance between celebration and responsibility will set the stage for a joyous holiday season and a prosperous financial future.

🚀 REALTORS & MORTGAGE CLIENTS, EXPERIENCE EXPEDITED MORTGAGE APPROVALS AT YOUR FINGERTIPS!

Welcome to Dominion Lending Centres Mainstream Mortgages, where we’ve streamlined and turbocharged the mortgage application process for the utmost convenience of our valued clients, REALTORS, and industry partners. Here’s how we make securing your dream home or investment property a breeze:

📲 Seamless Application with the My Mortgage Toolbox App:
Download our user-friendly “My Mortgage Toolbox App” at www.mainstreamapp.ca or visit our website at www.mainstreammortgages.ca to start your application swiftly.

⏱️ Quick and Detailed Application in 10-12 Minutes:
Your time is precious, and so is your dream home. Complete our mortgage application in just 10-12 minutes, ensuring a detailed submission for an expedited process.

🚀 Rapid Response within the Hour:
Once you’ve submitted your application with all necessary consents, our dedicated team swings into action, typically processing it within the hour.

📲 Communication Via Phone, E-mail and/or Text:
We provide the borrowers & their REALTOR communication at every step.

🕵️ Efficient Document Collection:
We streamline the document collection process by verifying credit and requesting all necessary documents upfront. We ask for everything we need and provide additional support with any questions you may have.

📤 Secure Document Submission:
Upload required mortgage documents to your secure online portal or email them to GreatRates@MainstreamMortgages.com. Clear and accurate PDF copies of statements, pay stubs, and employment letters are highly appreciated. Our document portal comes with detailed descriptions and easy-to-follow instructions.

📑 Thorough Document Review and Feedback:
Our meticulous review of your documents includes sending reminders for any outstanding items along with any questions we may have, ensuring a smooth process.

🚀 Swift Pre-Approval/Approval Submission:
Your pre-approval or approval is our priority. We process and submit your application promptly, sending all supporting documents to the lender for the quickest turnaround.

📄 Effortless Signatures with Docu-Sign:
Upon approval, we make the paperwork hassle-free. We send all necessary documentation for signatures and disclosures via Docu-sign, with our team ready to assist if needed.

📨 Seamless Coordination with Legal Professionals:
We seamlessly coordinate with your lawyer or closing company, ensuring all relevant documents are sent promptly, and you’re informed about the next steps.

📞 Post-Closing Support:
Our commitment doesn’t end at closing. We follow up to ensure a smooth transition and address any lingering questions you may have.

Experience our fast, friendly, and efficient service. Your next mortgage awaits, and we’re here to make it happen—fast and hassle-free! 🏡🚀

HOMEBUYERS WITH POSSESSION BEFORE MARCH 30TH, 2024
MORTGAGE HOLDERS RENEWING BEFORE MARCH 30TH, 2024

Fixed mortgage rates are slowly decreasing, and it’s the perfect time for YOU to save big on your mortgage rate. Your current lender may not reduce the rate offer already presented to you. At DLC Mainstream Mortgages, we monitor rates daily and will automatically request a rate drop if appropriate for all of our clients.

Why settle for the ordinary when you can have extraordinary? 🌟Before you commit, why not give your mortgage a second look? We’re here to ensure you’re not just getting a house but a HOME that fits your budget and dreams.

Why Choose DLC Mainstream Mortgages for a Second Opinion?

1️⃣ Expertise: Our team boasts years of experience in the mortgage industry, ensuring you get the best advice tailored to YOUR needs.

2️⃣ Personalized Service: Your dream home is unique, and so are you. We craft solutions that fit YOU, not the other way around.

3️⃣ Savings Guaranteed: With rates on the decline, now’s the time to explore your options. We’re committed to finding you the best deal possible.

🏠 Ready to take the next step? Here’s what to do:

✅ Check your current rates – are you getting the best deal?
✅Contact DLC Mainstream Mortgages for a complimentary second opinion.
✅Start packing for your dream home!

📞 Contact us today for your personalized consultation. Your dream home awaits, and we’re here to make it a reality!

Peter Paley, Colten Boudreau & Derek Vandall
Dominion Lending Centres – Mainstream Mortgages
Phone/Text: (431) 482-2187
E-mail: GreatRates@MainstreamMortgages.Com
www.MainstreamMortgages.ca
Download our FREE mortgage app at www.mainstreamapp.ca

#DreamHome #MortgageSavings #Homeownership #DLCMainstreamMortgages

Business Owners! Did you know that DLC Mainstream Mortgages also does Commercial Equipment Leasing? These post-pandemic times are just plain different. CEBA loans are due, demand for products and services may be wavering, and expenses and inflation have taken their toll.

Businesses of all types are experiencing challenges like never before. Commercial Equipment Leasing will allow you to upgrade/replace older/unreliable equipment or purchase new equipment that can improve your business’ efficiency.

✅Excellent Pricing, Terms & Solution Focused
✅Canada-wide approvals
✅High Credit Approval Ratio
✅One Day Credit Approvals
✅Speedy & Convenient
✅Reporting and Asset Tracking
✅Brand New Businesses Welcomed
✅Small & Medium Sized Business focused
✅Vendor Leasing opportunities for dealers and/or manufacturers

Click the link to find out more and apply. It is quick and easy

https://peterpaley.com/commercial-leasing/

The Manitoba Metis Federation has a beautiful grant program for Metis Citizens.   The program will provide 5% of the purchase price up to $18,000.00 plus closing costs of up to $2,500.00 for a total maximum grant of $20,500.00.  The grant is forgivable, if the applicants remain in their home as their principal residence for 10 (ten) years after which time the FTHPP will be forgiven and discharged from the title.

Eligibility:

• Proof of Metis Citizenship
• Be 18 years of age or older
• Must meet and qualify for a mortgage using lender and default mortgage insurer lending guidelines
• The purchased home must be the applicant’s primary residence.
• Applicants must not have ownership in any real estate (including land) with a market value of more than $30,000.00
• Family/Household taxable income as stated in the CRA notice of Assessments must be below $100,000.00
• Applicants must have current combined liquid assets of less than $60,000.00
• Maximum home purchase price of $600,000.00

Application Process:

Follow the link below to get the MMF Grant Application Today

Apply for the MMF – FTHPP Today! 

Conditions:

• All funds advanced will be sent to the lawyer in trust and will be applied towards the purchase of the home and related closing costs
• a ten (10) year 2nd mortgage charge will be registered by LRCC – Louis Riel Capital Corporation against the property behind the principal mortgagee to ensure long-term residency.
• The Metis applicants must remain in the home as their principal residence for 10 years after which time the FTHPP mortgage will be forgiven and discharged.
• The applicant may put up to $60,000.00 of their own funds toward the purchase of the home.
• The applicant may use the MMF-FTHPP in conjunction with the Government of Canada’s FTHBI – First Time Homebuyer Incentive
• The applicant will need to have enough of their own funds to make a deposit on a home.
• Co-signors are permitted if they will be living in the home and be co-applicants on the mortgage.
• If you want to move to a new home within the 10-year period the mortgage may be transferred.
• Exceptions for divorce or separation may be made to keep the grant in place.

Contact us for more information and to apply for your mortgage!

If you’re in the market for a new home, one of the best things to do is visit open houses!   You will be able to see what you like, check out different neighbourhoods, and interview REALTORS if you haven’t hired one yet!

To qualify for your mortgage please contact us directly or download our app from www.mainstreamapp.ca

If you’re ready to proceed with a formal application try our secure online application by clicking the following link APPLY FOR MY NEXT MORTGAGE NOW!

WINNIPEG OPEN HOUSES – NOVEMBER 26, 2023

CALGARY OPEN HOUSES – NOVEMBER 26, 2023

EDMONTON OPEN HOUSES – NOVEMBER 26, 2023

Peter Paley, Colten Bourdreau & Derek Vandall
Phone/SMS: 431.482.2187
E-mail: GreatRates@MainstreamMortgages.Com
Website: www.MainstreamMortgages.ca
DOWNLOAD OUR CONTACT CARD

Canadian Mortgage Default Insurance, commonly known as mortgage insurance, is a type of insurance that protects lenders in the event that a borrower defaults on their mortgage payments. This insurance is typically required when a homebuyer has a down payment of less than 20% of the purchase price of the home.

Here are some key points to explain Canadian Mortgage Default Insurance;:

1. Purpose: The primary purpose of mortgage default insurance is to protect lenders, such as banks and other financial institutions, from financial losses in case the borrower is unable to make their mortgage payments.
2. Down Payment Threshold: In Canada, borrowers are generally required to purchase mortgage insurance if their down payment is less than 20% of the home’s purchase price. This is often referred to as a high-ratio mortgage.  Borrowers with 20% down or more may choose to pay the insurance premium to get a better rate at the time of the application and on subsequent renewals.
3. Insurers: Mortgage default insurance in Canada is provided by Canada Mortgage and Housing Corporation (CMHC), as well as private insurers such as Sagen (formerly Genworth Canada), and Canada Guaranty.
4. Costs: The cost of mortgage insurance is usually borne by the borrower and can be a one-time premium paid at the beginning of the mortgage or added to the mortgage principal.  The premium ranges from 0.60% – 5.85% of the mortgage amount depending upon the mortgage program being applied for.
5. Beneficiary: While the borrower pays for the insurance, the primary beneficiary is the lender. This insurance gives lenders the confidence to provide mortgages to borrowers with smaller down payments.
6. Homeownership Access: Mortgage default insurance plays a crucial role in making homeownership more accessible to a broader range of Canadians by reducing the down payment requirements.
7. Loan-to-Value Ratio (LTV): The loan-to-value ratio is a key factor in determining the need for mortgage insurance. It is calculated by dividing the loan amount by the appraised value of the home.

   If you are looking to purchase your first home, have an upcoming renewal, or need to refinance your existing mortgage, we are here to help!

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