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Fixed vs. Variable: Which Rate Is Best for You

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If you’re in the market for a mortgage, it can be difficult finding a mortgage that fits your budget and understanding the different options. Below is a quick rundown on the differences between fixed-rate mortgages and variable mortgages and how you can select the best one for you.

What’s The Difference?

Before we tackle which kind of mortgage style is best for your needs, it’s important that we outline what exactly a fixed-term and variable mortgage is.

A fixed-term mortgage is when you agree to borrow money from a lender and repay it over the period with an interest rate that never changes. This means that if your interest rate starts is 4%, it will stay at 4% for the entire lifetime of the mortgage.

On the other hand, a variable mortgage is when you borrow money from a lander, but your interest rate can fluctuate depending on shifts in the economy. This can result in a mortgage starting 4%, but due to the banks later lowering their interest rates to 3%, the existing mortgage rate will go down to 3% as well.

What is the State of the Market?

During a time when the economy is doing well and plenty of people are opening bank accounts, lenders will often lower their rates due to the great amount of credit available to them. When the rate of people opening accounts decreases, lenders will be forced to raise interest rates to make up for the loss of credit.

If you’re considering applying for a mortgage and banks are only beginning to lower their rates, getting a variable mortgage can potentially provide you with interest savings for the first few years.

What Are Your Goals?

Everyone has different financial goals, and whether you are looking to potentially save money in your mortgage or have a steady, reliable mortgage is totally up to you.

Fixed-rate mortgages are an excellent option if you value stability and are looking at exploring other financial opportunities alongside your mortgage journey. While variable rates are ideal for those who follow lending trends and work to lower their interest payments.

Whether you’re looking for stability or opportunity, I can help you achieve your goals and find the mortgage that works for you. Give me a call today or visit my website to see how I’ve helped many Saskatoon families and can help yours too.

By |February 3rd, 2020|Uncategorized|Comments Off on Fixed vs. Variable: Which Rate Is Best for You|

Difference Between a Mortgage Broker and a Bank

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Everybody dreams of one day owning their own home or property. The question is, where do you start on this journey and who is the best person to ask for help? Below are the 3 major differences between working with a bank and working with a mortgage broker so that you can make an educated decision.

Mortgage Brokers Are Cheaper in the Long Term

When you get a mortgage directly from the bank, you are restricted to their rates and systems with very little room to negotiate. When you choose to go through a mortgage broker, though, you have a proven negotiator who can get you a lower rate that will save you money.

Better yet, because mortgage brokers have such good relationships with banks and credit unions, they can often convince these institutions to offer loans to people who would normally not be considered due to poor credit history or self-employment.

Mortgage Brokers Understand the Entire Market

Your bank’s tellers and mortgage specialists may be very friendly when you come in for a mortgage, but their knowledge is limited to the products and services that their specific bank offers.

By going to a trusted mortgage broker, your broker will take a look at all of the financial institutions in your area and search for the best long-term deal that can work for your circumstances.

Mortgage Brokers are Personable and Work for You

At the end of the day, banks and other financial institutions have one goal: to generate as much revenue from their services as possible. Even if you have been a loyal member for a long period of time, their ultimate goal is to make a maximum profit from your mortgage.

Mortgage brokers are first and foremost negotiators and they do their best to negotiate what’s in the best interests of you, the client. If there is a deal that may look too good to be true, your broker will alert you to any risks involved and help you chart the best course to owning your own home.

Whether you’re looking to purchase a property for your business or a new home to start a family, hiring an experienced mortgage broker is the best way to save you money and peace of mind. Give me a call today at 306-220-0425 or visit my website to book an appointment and hear how I can help you get your journey to becoming a homeowner off on the right foot.

By |February 3rd, 2020|Uncategorized|Comments Off on Difference Between a Mortgage Broker and a Bank|

Mortgage Pre-Approval Calculator: The Essentials

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Are you wanting to buy your first home? A mortgage pre-approval calculator is a key step that will help you determine your financial parameters and get the process started. Here’s why you need to do this before you buy your first home.

What is a Mortgage Pre-Approval Calculator? 

When you get pre-approved by a lender, you receive a pre-approved mortgage certificate that verifies the maximum amount you’re allowed to borrow at a guaranteed interest rate. This certificate typically expires after 90-120 days, and if your closing date is within this time period, your guaranteed interest rate won’t change. The calculator is a tool that will determine the best rate depending on your mortgage term and compare it to rates that banks are offering.

What Do You Need? 

The mortgage pre-approval process asks you many of the same questions asked on a full mortgage application. A lender does a credit check, pre-approves you for a maximum amount, and gives you a mortgage pre-approval certificate. Although this doesn’t guarantee final approval, it lets you know how much money you can borrow.

How It Benefits You

A mortgage pre-approval certificate gives you confidence and peace of mind while you shop for your dream home. It can help you narrow your focus to homes within your price range and save time during the search process. A pre-approval certificate will prove you have the proper financial backing and can also improve your chance of getting the house in a competitive situation.

Choose a Mortgage Broker

With the help of a mortgage broker, you can get access to hidden rates that you wouldn’t otherwise receive because brokers work with a variety of lenders and have access to competitive interest rates.

Remember that a mortgage affordability calculator assumes you’re an ideal candidate for a mortgage and only gives an estimate of the amount for which you’ll be approved. To get a comprehensive picture of what you qualify for, speak with a mortgage broker about getting a mortgage pre-approval.

As your Mortgage Group professional, I offer one-stop convenience and impartial advice. My job is to help you find the mortgage that best suits your financial needs. Make an appointment with me at (306) 220-0425.

By |February 3rd, 2020|Uncategorized|Comments Off on Mortgage Pre-Approval Calculator: The Essentials|

The Mortgage Pre-Approval Process

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Winter may be putting a chill in any thoughts of moving, but it’s never too early to get the ball rolling on your first home purchase! Let’s take a quick look at the pre-approval process for taking out a mortgage.

Know Where You Stand

Before you begin the application process, you should ensure that you are in good financial standing to receive a mortgage. We will start by ordering a copy of your credit report to make sure that you are in good standing financially and that there are no errors that may affect a lender’s decision. This document will show you and the lender whether or not you have consistently paid back your loans and credit cards, and how likely you are to follow through on your agreements.

Submission of Documents

When you begin the application process for a mortgage, we will need proof of your identity and financial ability to pay the loan back. We may assess these things by requesting:

- Photo ID
- Records of employment (E.g. T4’s, pay stubs, letters from employer)
- Bank account statements
- Proof of assets (E.g. cars, real estate, investments, or jewelry)
- And proof of liabilities (E.g. existing loans, credit cards, student debt, or child support)

Once these are verified, we can enter your application into the system to be considered for a mortgage.

Confirmation and Guarantees

So we’ve sent off your application, and you finally get the response you’ve been waiting for: “congratulations, you’ve been pre-approved for a mortgage”!

Before we finish here, there is one thing you should always remember. Being pre-approved for your mortgage does not necessarily mean you will get the exact sum you applied for, but rather that you are eligible for the current interest rate. This means that if interest rates go up, yours will stay as low as it was before, but if interest rates go down, yours will drop as well!

Being pre-approved for a mortgage can be an exciting achievement, but it is only the first step in the long process of purchasing your dream home. To make the rest of the process as easy as 1-2-3, give me a call today at (306) 220-0425 or to learn more about mortgages and begin the application process.

By |November 11th, 2019|Uncategorized|Comments Off on The Mortgage Pre-Approval Process|

How Mortgage Rates are Changing

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Here’s a look at how the uncertainty in the housing market is this affecting mortgage rates for homeowners.

The Current Landscape

Saskatchewan has had a for the last number of years. This occurs when the housing supply is larger than the demand, allowing buyers to be choosy and to negotiate, while sellers are forced to wait and possibly cut their prices.

In 2018, it was predicted that Saskatoon’s housing market would continue to decline for the fourth consecutive year before it rebounded and experienced growth in 2019-20. Although the market’s absence of wild changes can be considered positive because it shows that the housing market is not in a “boom or bust” cycle, it also means that change can be excruciatingly slow to occur. Factors that affect the markets, and that could risk them bouncing back, include
population, job, and income growth.

The New Mortgage Rules

Federal mortgage rules were changed near the beginning of 2019 in an attempt to cool the housing market in Toronto and Vancouver, but this has negatively impacted the Saskatchewan market. These new rules have not only weakened the market, but forced some people to leave it altogether. During this time, the Canadian Home Builders’ Association estimated that had been taken out of the market, with over half being first-time buyers.

What are Mortgage Rates Doing Now?

In May of this past year, experts were still warning that although the market had seen an upswing, the damaging results of the mortgage stress test rules were still very present. Many potential home buyers with a downpayment of 20% would either have to come up with an additional or lower their target price. Check out our to see what today’s best rates are and what kind of rate you could get.

Economists are struggling to predict what mortgage rates will do in the long-term due to economic uncertainty. What they are agreeing on is that rates may change after the federal election, but are uncertain what the future may hold post-election.

As your Mortgage Group professional, I offer one-stop convenience and impartial advice. My job is to help you find the mortgage that best suits your financial needs. Make an appointment with me at (306) 220-0425 or for more information.

By |November 8th, 2019|All Articles|Comments Off on How Mortgage Rates are Changing|