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

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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!

October 19, 2023

❤️We Love Realtors❤️

🏆This is a shoutout to all of the hardworking REALTOR partner professionals who have supported and helped us throughout the years. We appreciate all of the work, long hours, and especially all the driving you do 🚗🚗🚗.

REALTORs and Mortgage Brokers have such a symbiotic relationship. We are both working for the same goal, to get our mutual client the best deal, rate, terms, and solution to fit their homeownership needs.

REALTORs who work with dedicated mortgage brokers can increase their annual business by up to 4x than going it alone.

❓Why❓

✅ Time – A REALTOR can save a lot of time by knowing that their client is pre-approved, and not only pre-qualified. Imagine showing 15 homes, finally getting an accepted offer, and finding out in the end the client isn’t approved.
✅ Peace-Of-Mind – A REALTOR can focus on their day-to-day tasks and marketing because Mortgage Brokers have access to all buyer programs i.e. First Time Home Buyer Incentive, Business For Self/Self Employed Programs, MMF First Time Home Purchase Plan and so many more.
✅ Efficiency – Mortgage Brokers can work evenings, weekends, and holidays. If a REALTOR is in a jam, mortgage brokers are there!
✅Experience – REALTORs can rely on the experience that seasoned Mortgage Professionals have. If you have a challenging situation, we’ve probably had experience handling it!
✅Comprehensive – Mortgage Brokers will do a detailed and meticulous pre-approval and ensure that your client has the best solution.
✅Tenacity – We cannot pre-approve every client. However, we can work with them. If a potential homebuyer doesn’t qualify now, we will work with them and provide ongoing advice and support to eventually get them pre-approved (usually 3-18mos).
✅Relationship – A REALTOR and a Mortgage Broker have a special relationship and often find each other in very similar situations and can easily relate on many issues.
✅Questions – Mortgage Brokers are happy to always provide information and training to REALTORS. We love to answer your questions!

If you are a REALTOR and looking to partner with an excellent Mortgage Broker Team. Please contact us and let’s have a coffee!

#mainstreammortgages #realtorlife #mortgagerates #realestate #mortgagebroker

If you have a basement suite or rental property and you are currently looking for a tenant, there are some things to know! Whether this is your first tenant or you have other rental properties, it is a good idea to familiarize yourself with the specifics to ensure a harmonious tenancy.

As always, your responsibility as the landlord is to keep your rental properties in good condition and ensure they meet health, safety, and housing standards. However, as a landlord, you also have additional responsibilities around the rental agreement and tenant regulations.

Tenancy Agreement

Landlords are required to prepare a written agreement for every tenancy. Bear in mind, if this agreement is not prepared the standard terms for your province will still apply, especially if a security deposit is paid. This agreement should clearly outline the following:

• Who the agreement is between
• The length of the tenancy
• Rent amount and due date
• Required deposits (if any)
• Pet restrictions (if any)
• Additional terms (smoking or non-smoking, etc)

The tenancy agreement should also outline if there is the ability to add a roommate, and whether or not utilities, parking, storage, laundry, etc. are included.

Deposits

Typically, a security or damage deposit is requested by the landlord to establish tenancy and cover any unexpected issues that may arise. The deposit can be no more than half of the first month’s rent.

If you are charging a pet deposit fee, note that guide or service pets are exempt from any damage deposits. In addition, you cannot charge fees beyond the pet damage deposit.

Move In

To ensure the move-in goes smoothly, tenants and landlords should schedule a move-in time that works for everyone. At the beginning of the tenancy, you may also consider an inspection before the new tenant has moved in to ensure everyone is on the same page and the condition of the unit is clear in regard to any potential damages or fixes needed.

As a landlord, you are also responsible for changing the locks (at your cost) should the new tenant request it.

Additional Considerations

As a landlord, you will want to assess the suitability of any new tenant before signing the agreement. There are a few things you can do to ensure a smooth process and the right choice of tenant:

• Ask for proof of identity
• Thoroughly check all references
• Contact previous landlords to ask about rental and payment history
• Conduct a credit check to confirm income and financial suitability
• Get the names of all persons to be living in the rental unit

Once you have reviewed the above, you will be in a good position to determine if the potential tenant is a good fit for the rental space.

However, keep in mind that you cannot refuse to rent to a tenant based on any discriminatory aspects such as race, gender, sexual orientation, religion, etc. In addition, you cannot refuse to rent to individuals on income assistance.

While it can seem like a lot, with the proper preparation and understanding of tenant laws and regulations in your area, you can ensure a smooth and successful rental process!

Here are some links to local tenancy branches in MB and AB.
MANITOBA – RESIDENTIAL TENANCIES BRANCH
ALBERTA – RESIDENTIAL TENANCIES BRANCH

If you need more information about Rental/Income Property Mortgages check out our page at

MAINSTREAM MORTGAGES – RENTAL PROPERTY MORTGAGES

Visiting an open house is an excellent way to start viewing a home and getting a sense of which neighborhood you like and the features and floorplans that interest you.

Here is a list for all of Winnipeg & surrounding area for Sunday, October 15th

OPEN HOUSES – WINNIPEG AND SURROUNDING AREA – SUNDAY OCTOBER 15, 2023

Make sure you download our app for current mortgage rates and to get a pre-qualification.  You can also contact us using the form below or texting us at 431.482.2187

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