Visiting open houses is an excellent way to ease into the real estate market.   You can see which neighbourhoods appeal to you, meet and interview REALTORs and preview homes that you may want to make an offer on.

If you are actively looking for a new home it’s important to get a mortgage pre-appoval.   You can start by downloading our My Mortgage Toolbox App and contact us today!

Click the following link to be redirected to this weekend’s open houses

WINNIPEG Open Houses – Sunday November 5th, 2023

Contact us using the form below to start your mortgage application

CLICK TO START YOUR SECURE MORTGAGE APPLICATION

A rate is not a rate.  Wait, what? For the past decade, the regulatory changes in Canada have spawned different types or classes of rates.   The three classes are INSURED, INSURABLE & UNINSURED.

INSURED: This is almost always the best rate you can get for your mortgage.  The borrower will pay for mortgage default insurance from either CMHC, Sagen, or Canada Guaranty.  The cost of this is called the premium and it can range from .60% of the mortgage amount all the way up to 6.6% of the mortgage amount.  The insurance premium is added to the mortgage amount and amortized and calculated in the mortgage payments.  The amortization of the mortgage is limited to 25 years.  Mortgage default insurance is required if a borrower is making a down payment of less than 20%.  It is optional if a borrower is making a down payment of 20% or more.  Why would anyone opt to pay this insurance?  It will let them have a better rate now and usually a lower payment for the first term.  Upon renewal the mortgage will be easier to transfer or change lenders and the borrower will always get the lowest rate the math will favor the insured mortgage rate in terms 2 & 3 and come out better in the longer term.   If clients are putting down 35% or more, the insurance is quite inexpensive in comparison to other down payment levels and the mortgage application can usually be done much faster and include the cost of the appraisal.

INSURABLE:  An insurable rate is for mortgages that have a down payment of 20% or more and are limited to an amortization of a maximum of 25 years.  The insurable rate is slightly higher than the insured rate and presents a slightly higher risk and cost to the lender.  They will package up many mortgages with this time rate and pay for the mortgage default insurance in bulk.  Basically, bundled mortgage default insurance for lenders.  The mortgages can then be sold as high-quality government-guaranteed investments through the MBS – Mortgage-Backed Securities on the secondary market.  MBS offers safe investments with competitive yields and is RSP/RRIF eligible.

UNINSURED: An uninsured rate does not have any mortgage default insurance attached and the lender is lending their own cash using the property and the personal covenant/guarantee of the borrowers as security on the mortgage.   The borrower must put down 20% or more and the lender is assuming more risk.  The uninsured rate is almost always the highest of the three classes.  The borrower however can extend the amortization to 30 years and lower payments.  Some lenders in the alternative space will allow 35-year and even 40-year amortization in exchange for an application fee and a higher interest rate.

Inside of these three classes (Insured, Insurable, and Uninsured), there are 3 types of rates; Fixed, Variable, and adjustable.

FIXED:  Offers terms of 1-10 years and the borrower will pay a fixed payment at a fixed rate for the entire length of the term.

VARIABLE:  Variable rates will fluctuate when the Bank Of Canada either raises or lowers the PRIME lending rate.   The payments for this time of mortgage will remain static.  As the prime rate increases or decreases the lender will adjust the principal and interest amounts of the payment, but keep the payment the same.   The lender will also include in the mortgage contract a trigger rate which is a rate where the payments will increase if interest rates continue to increase as they did in late 2022 and 2023.

ADJUSTABLE:  Adjustable rates are also variable and will fluctuate when the Bank Of Canada either increases or decreases the PRIME lending rate.  However, with this type of rate, the lender will adjust the payments to match the current Prime Lending Rate.

If you are looking to be approved for a mortgage whether you are looking for a pre-approval, buying a new home, refinancing or renewing your existing mortgage, or looking for ways to access your home’s equity, contact us today!

For the last 15 years mortgage lending policy has become tighter and tighter. Lending and banking policies have been implemented with little to no thought put into what the consequences might be and if the policies would actually hurt or deter Canadians from homeownership.

However, a bit of good news. The banking regulator OSFI has clarified that insured borrowers, or those who have had to buy mortgage default insurance, can switch lenders without being stress tested and therefore EXEMPT! This means that if you have CMHC/SAGEN/Canada Guaranty Mortgage Default Insurance you can qualify to switch your mortgage to a new lender with the best rate a lot easier.

This is excellent news for people who are coming up on their first renewal.

Many banks have been sending VERY HIGH renewal rate offers 6.4%-6.99% for a 5-year fixed, assuming the borrowers would NOT qualify at another lender. Padding the bottom line? Maybe.

Now that the regulator has clarified the rule, if a borrower has an insured mortgage, and is looking for the best rate and terms upon renewal (with no extra funds or changes to amortization), then we can qualify them at the contract rate on not have to stress test them at 2% above the actual rate.

This means that you may once again have choices when renewing your mortgage!

The bad news? Borrowers who have conventional mortgages will still be required to be stress-tested 🙁

If your mortgage renewal is coming up in the next 120 days, contact us as soon as you can and we can start to shop around your bank’s renewal offer!

*Singing* 🎶There’s no place like home for the holidays🎶

If you would like to be in your new home for the holiday season🎁, GOOD NEWS!  There is still time!

You will need to get pre-approved by us as soon as possible and remember we will review all of your documents and application upfront to ensure a smooth home purchase and mortgage transaction.

Here is the timeline to get you home for the holidays!

🎅 Complete our secure online application 10-15minutes
🎄 We will review the application the same day or the next  and request the required document(1-day)
🤶 You will upload all of the required documents (Income, down payment, etc.)
🕯️ We will review your documents the same day or the next day.
🕎 We will submit your application for a rate hold and issue your pre-approval letter.
❄️ You can contact your REALTOR or we can recommend one for you to start shopping!
🌟 Once you find a home, contact us to enter the details in your application and make a conditional offer with 3-days for a financing condition and possession date before the holidays!
☃️We will submit your application and have a decision in 24 hours.  The lender may have a few more questions or require more documents.
🎁Once approved and all conditions are met, we will issue your FINAL APPROVAL!!!j

And congratulations we can have you home for the holidays!

Dr. Sherry Cooper is Dominion Lending Centre’s Chief Economist.  We love to share her insights!  Hou can click on the video to watch the full update and the link to read her latest article.
DR SHERRY COOPER’S UPDATE – “HAWKISH HOLD BY THE BANK OF CANADA”

Our economy has slowed, parts of the world are in turmoil, and interest rates are still high.  Here are some of my hilites from Dr. Sherry’s Update.

🐌 The Canadian economy has slowed
📈 Inflation is holding at approximately 3.7%/3.8%
⬇️ Mortgage originations are down
⬇️Job vacancies are down
⬇️Food inflation is down (The prices are still high, but at least not increasing, much)
⬇️ Home sales are down 3 months in a row (nationally)
⬆️ 35% increase in listings (nationally)
⬆️ Consumer insolvencies are up
⬆️ Business insolvencies are up.
⚡Energy prices are the main contributor to inflation since June 2023
🔥 The US economy is hot and as always affects Canada.
💪 Employment in Canada remains strong
💸 Government budget deficits mean more interest is being accrued

🔮 What does it all mean?  No one has a crystal ball and everyone’s situation is unique.  The best thing to do is be informed and prepared.
✅ Contact us for a review of your existing mortgage
✅ Contact us for a 2nd opinion regarding a mortgage pre-approval
✅ Know your numbers and do your household budget
✅ Try to eliminate as much consumer debt as possible
✅ Eliminate unnecessary expenses
✅ Lower necessary expenses (shop around, clip coupons, watch for sales)

Watch and enjoy the presentation below.

DR SHERRY COOPER’S UPDATE – “HAWKISH HOLD BY THE BANK OF CANADA”

Contact us today for your next mortgage

Why were you (Mainstream Mortgages) able to get me approved and my bank or credit union couldn’t?

One of our recent clients asked us this question. The answer isn’t that simple in all cases. For the most part, each and every lender will have access to the same programs offered by the Federal Government and Provincial Governments, and the rules are uniform across the land.

I think the best answers to this question will help keep our clients SAFE and worry-free:

🏆S – specialization
🏆A – access
🏆F – focus
🏆E – experience

😎As a mortgage specialist in one of Manitoba’s largest mortgage brokerages, we have the specialization, diversification, and knowledge of our team members is crucial. For example, we have private, commercial, and mortgage salespeople who specialize in first-time homebuyers, new to Canada, and Self-employed mortgages.

😎We have access to many lenders, programs, and niche lending products. More choices and access will usually lead to finding a good solution for our mortgage clients.

😎Focusing on mortgages allows us to live and breathe mortgages on a daily basis. Our office will often brainstorm ideas to help find a solution for our clients.

😎Our experience and knowledge grow every week. We are constantly finding new technology and more efficient processes. We attend webinars, and conferences, and have our lender partners updating us on rates and policies.

They say that the devil is in the detail 😈, and this cannot be more true for mortgages. Presentation, knowledge, and quality of documents are all factors that will help us put together the perfect mortgage package for YOU! Contact us for your next mortgage!

When applying for a mortgage many borrowers are overwhelmed with the amount of documentation we request, and today, I want to talk about Paystubs.

Paystubs fall under the income category in the mortgage documentation process.

Paystubs should contain all of the following information:

✅Your employer’s name/Company Name
✅Your Name
✅The pay period date
✅The wage or salary and how many hours were worked in the pay period.
✅Any overtime, bonus, vacation pay, or other premiums.
✅All deductions from wages and the reason for each deduction
✅Your YTD year-to-date pay
✅Both your gross and net pay
✅It is also preferred that the paystubs are prepared by a payroll service such as Ceridian, Ibex, or a Government Agency

Not all people receive traditional paystubs.  Some employers do their own payroll through their accounting software, use a bookkeeper, or pay by cash or cheque and issue a PDOC spring (Payroll Deductions Online Calculator)
In these cases the standard information may or may not be included on the pay statement and extra information will be required.  This information could include;

⚠️ All pay statements for the last 3 months – 12 months
⚠️ Personal bank statement showing the matching deposits for 3 months – 12 months
⚠️ A letter from your employer declaring your YTD year-to-date gross income.

What do we look for in the paystubs?

➡️ We make sure that your income is consistent.
➡️ We will check to see if the hours on the paystub match your letter of employment
➡️ We will look at your YTD year-to-date pay to make sure it’s on pace with what you should have made.
➡️ We will look at your YTD hours to make sure that they are also on pace with what you should have worked.
➡️ We will look for any anomalies on the physical paystub and even make sure that all of the deductions make sense, and add up.

If we find any anomalies we may need you to provide more information.

If you have any questions about your mortgage documentation or would like to apply for your next mortgage, please contact us at 431.482.2187 (Call/Text) or at greatrates@mainstreammortgages.com

October 23, 2023

You have been asked to be a co-signer on a mortgage. Here are 6 things to consider:

6 Things for Co-Signers to Consider.
Are you thinking about co-signing on a loan or mortgage? If you’re looking to help out a family member or loved one, this is a great way to do that because a co-signer can help the borrower qualify and overcome the stress test and borrowing obstacles.

However, it is important to be aware of the implications when being a co-signer on a loan or mortgage.

💳 Credit History: Your own personal credit score and history can be affected. You are giving the lender access to your credit history. If the borrower makes any payments late or stops paying the loan for any reason, the late payments will negatively impact the co-signers credit score.

⚖️ Legal Implications: Always be sure to understand the taxes, legal, and estate situations that accompany co-signing, should the borrower fail to pay. A lawyer can help you review the loan agreement and advise of any items you may need to take note of.

🗓️ Timeline: Understanding how many years the co-signed loan or mortgage agreement will be in place and what your options are for making changes will help you determine the scope of the loan and if you can make changes at any point should the borrower become able to assume the entirety of the mortgage on their own in the future.

💰Personal Income Tax: Depending on the loan, you may have an obligation to pay capital gains taxes. It is a good idea to review your personal tax situation with an accountant or tax professional before signing off on the co-borrower agreement to ensure no surprises.

🤗Relationship with Borrower: This is a vital consideration for going in on any loan. Do you trust the individual? Are you aware of their financial situation? Are you willing to potentially put yourself at risk to assist them? These are all important questions as many of us may want to help out family or loved ones, but it is important to ensure that the individual is reliable.

🔮Future Finances: Lastly, consider your future finances and if you have any plans in the future that could be impacted by an additional loan. How much flexibility do you need for yourself and your family? If you have plans to purchase a new home, refinance your existing home, or make any other changes to your own mortgage, being a co-signor could affect and limit your options.

Co-signing for a loan always requires careful consideration and it is a large responsibility. However, when done correctly and with people you trust, it can be a great way to assist family members or loved ones with their goal of homeownership. If you are considering co-signing on a loan and have any questions please contact us today!

#mainstreammortgages #mortgagebroker #cosign

https://youtube.com/shorts/LHbcTz5wrGw

Mortgage Documents – Letter Of Employment 📝

The Letter Of Employment is a common document requested by Mortgage Professionals and Lenders.  We request this document for borrowers who are either salaried or earn an hourly wage.

The letter has a few requirements to be accepted by a lender and/or mortgage default insurer.

👉 Letterhead – The letter must be written on company letterhead
👉 Guaranteed Hours – The letter must state the guaranteed hours per week worked by the borrower.  If the borrower’s hours are not guaranteed and the letter uses terms like “works an average of ______ hours per week” or “works up to _____ hours per week”, more documentation will be required.
👉 Position – The letter must state the borrower’s position.
👉Start Date – The letter must state the borrower’s start date
👉Remuneration – The letter must state the borrower’s hourly rate or salary
👉Authorization – The letter must have the Manager/Supervisor/HR author’s signature and direct phone number for verification.
👉Date – The letter must be dated within 30-60days

⚠️If the letter states that the hours are NOT GUARANTEED, we will then ask for the most two recent years of T4 statements and use either the two-year average or the most recent year’s income (if lower than the previous year).
⚠️In this case, we will also confirm the current YTD – Year-To-Date Gross Earnings to confirm that the borrower is on pace to earn the income amount allowable.

🔎What do we look for🔎
✅ We will search for the company on Google to ensure it exists and view its website if applicable.
✅ We will do our best to verify that the person who signed the Employment Letter works for that company.
✅ We will also do our best to confirm that the employee isn’t related to the owner of the company or has ownership in the company themselves.

The property verification of documents that we do upfront can save the borrower and their REALTOR a lot of stress.  Lenders and regulators are developing new techniques and embracing new AI technology to identify misrepresentations in mortgage documentation.

Having a perfect documentation package is very satisfying to a mortgage broker!

We hope that we can help you with your next mortgage!