21 Jul

Getting a mortgage in Saskatoon

First Time Home Buyer

Posted by: Scott Trainor

Purchasing a home is one of life’s most significant milestones, and for many in Saskatoon, getting a mortgage is an essential step towards making this dream a reality. As a seasoned mortgage broker with over 10 years of experience, I understand the complexities of the Canadian mortgage market and the critical factors that lenders consider when evaluating applicants. In this blog post, we’ll delve into the essential aspects of getting a mortgage in Saskatoon, exploring credit scores, income requirements, down payments, debt ratios, and other key factors.

Understand Your Credit Score

Your credit score is a crucial component in the mortgage qualification process. In Canada, credit scores range from 300 to 900, with higher scores indicating better creditworthiness. Lenders use credit scores to assess your ability to manage debt responsibly and make timely payments. To qualify for a mortgage, a minimum credit score of around 620-680 is often required. However, to access more competitive interest rates and terms, it’s advisable to aim for a score of 700 or higher. To improve your credit score, ensure that you pay bills on time, keep credit card balances low, and avoid opening multiple new credit accounts shortly before applying for a mortgage. Check out a video here on understanding your credit report.

Calculate Your Gross Debt Service (GDS) Ratio

The GDS ratio is a measure used by lenders to determine whether you can afford your potential mortgage payments, including principal, interest, property taxes, and heating expenses. Typically, the GDS ratio should not exceed 39% of your gross monthly income. To calculate your GDS ratio, divide your monthly housing costs by your gross monthly income and multiply the result by 100.

Calculate Your Total Debt Service (TDS) Ratio

The TDS ratio is another crucial metric used by lenders to assess your overall debt burden, including your potential mortgage payment and other existing debt obligations such as credit cards, car loans, and personal loans. Typically, your TDS ratio should not exceed 44% of your gross monthly income. To calculate your TDS ratio, add up all your monthly debt payments and divide the total by your gross monthly income, then multiply by 100.

Gather Sufficient Down Payment

In Canada, the minimum down payment required varies depending on the purchase price of the home, and saving for a larger down payment can help you qualify for more substantial mortgage options and reduce your overall borrowing costs.

    1. For homes priced up to $500,000, the minimum down payment is 5%.
    2. For homes priced between $500,000 and $999,999, the minimum down payment is 5% on the first $500,000 and 10% on the portion exceeding $500,000.
    3. For homes priced at $1 million or more, the minimum down payment is 20%.

 

Employment and Income Stability

Lenders want to ensure that you have a stable source of income to meet your mortgage obligations. Typically, you’ll need to provide proof of employment, such as recent pay stubs or employment letters, demonstrating consistent income for at least two years. When you’re self-employed, you may need to provide additional documentation, such as business financial statements and tax returns, to verify your income.

 

Consider Mortgage Insurance

If your down payment is less than 20% of the property’s purchase price, you’ll be required to obtain mortgage insurance, commonly provided by the Canada Mortgage and Housing Corporation (CMHC) or other private insurers. Mortgage insurance protects the lender in case you default on your loan and enables lenders to offer mortgages with lower down payment requirements.

 

Prepare Required Documentation

When applying for a mortgage, you’ll need to gather several documents, including:

    1. Personal identification (e.g., driver’s license, passport)
    2. Proof of income (e.g., pay stubs, tax returns, T4 slips)
    3. Proof of down payment (e.g., bank statements)
    4. Proof of assets and liabilities (e.g., bank statements, credit card statements)
    5. A copy of the purchase and sale agreement for the property

 

Getting a mortgage in Saskatoon involves careful preparation, understanding your financial situation, and ensuring that you meet the lender’s criteria. By taking the time to improve your credit score, managing your debt responsibly, saving for a sufficient down payment, and gathering the necessary documentation, you can position yourself for a successful mortgage application. As an experienced mortgage broker, I’m here to guide you through the process, find suitable mortgage options, and make your dream of homeownership a reality. Happy house hunting!

Check out more videos here.

18 Jul

Benefits of Refinancing

General

Posted by: Scott Trainor

There are many benefits of refinancing your home in Canada. Refinancing a home involves replacing an existing mortgage with a new one. You do this to take advantage of better terms, interest rates, or to access the equity built in the property. In Canada, home refinancing can be a powerful financial tool that offers numerous benefits to homeowners. This article explores the key benefits of refinancing and how it can help individuals improve their financial situation in Canada.

House in saskatoon

Benefits of refinancing your home are plentiful

I. Extend Amortization and Reduce Monthly Payments:

One of the primary benefits of refinancing is to take advantage of lower payments. By refinancing at a time when interest rates are higher than when the original mortgage was taken, homeowners can change their amortization to significantly decrease their monthly mortgage payments. This reduction in monthly expenses can do many things. It frees up additional cash, which can be used for various financial goals, such as saving for retirement, paying off debts, or investing.

II. Consolidating Debts:

Home refinancing allows homeowners to consolidate high-interest debts, such as credit card debts and personal loans, into a single, lower-interest mortgage. This process, known as debt consolidation, can save homeowners substantial amounts of money on interest payments and simplify their financial obligations. Instead of managing multiple debts with different interest rates and due dates, they now have a single monthly payment, making budgeting easier and more manageable.

III. Accessing Home Equity:

As homeowners make mortgage payments, the equity in their property increases over time. Home refinancing enables individuals to tap into this accumulated equity for various financial purposes. Whether it’s funding home renovations, paying for education expenses, starting a business, or covering unexpected medical bills, accessing home equity can be a lifeline during times of financial need.

IV. Changing Loan Terms:

Refinancing allows homeowners to adjust the terms of their mortgage to better suit their current financial situation. For instance, individuals with an adjustable-rate mortgage (ARM) may choose to refinance into a fixed-rate mortgage to lock in a stable interest rate and protect themselves from potential rate hikes. On the other hand, those with a long-term fixed-rate mortgage may choose to refinance into a shorter term to pay off their mortgage faster and save on overall interest costs.

V. Enhancing Credit Score:

When homeowners consistently make on-time mortgage payments and reduce their overall debt through refinancing, their credit score is likely to improve over time. A higher credit score can open doors to better financial opportunities.

VI. Investment Opportunities:

Homeowners who choose to refinance and access their home equity can use the funds to invest in income-generating assets. For example, they might invest in a second property, start a rental business, or explore other investment avenues that can provide additional streams of income. Smart investments can lead to long-term financial growth and wealth accumulation.

Home refinancing is a valuable financial strategy that can significantly benefit homeowners in Canada. By taking advantage of longer amortization, consolidating debts, accessing home equity, adjusting loan terms, individuals can strengthen their financial position and achieve their long-term financial goals. However, it’s essential to approach refinancing decisions with careful consideration. Call me today to see if refinancing is a good option.

12 Jul

Mortgage Decline: What to do now

Bad Credit

Posted by: Scott Trainor

In the pursuit of homeownership, a mortgage decline can feel like a major setback. But fear not! In this comprehensive blog post, we’ll explore the reasons behind a mortgage decline in Canada and provide practical solutions tailored to specific circumstances. Whether it’s credit issues, income limitations, or other factors, we’ve got you covered. So let’s dive in and turn that “declined” into a “delighted”!

Photo of Scott Trainor ready to help with a mortgage decline

Scott Trainor, mortgage broker ready to help with your mortgage decline

Credit Woes:

One common reason for a mortgage decline is credit-related issues. Lenders assess your creditworthiness through factors like credit score, payment history, and debt levels. To overcome this hurdle, focus on rebuilding your credit. Obtain your credit report, identify any errors, and dispute them. Pay off outstanding debts and make all future payments on time. Over time, your credit score will improve, enhancing your chances of mortgage approval.

Insufficient Income:

Another factor leading to mortgage declines is insufficient income. Lenders evaluate your ability to repay the loan. They consider your income, employment stability, and debt-to-income ratio. To improve your chances, explore ways to boost your income. Consider a second job, freelance work, or asking for a raise. Reducing existing debts can also enhance your ratio, making you a more attractive borrower.

Employment Instability:

Unstable employment history or recent job changes can raise red flags for lenders. They prefer borrowers with steady income sources. If you’ve recently changed jobs or have irregular employment, don’t despair. Focus on building a stable employment record. Stay in your current job for a reasonable period. Demonstrate career progression, or consider securing a long-term contract. Stability and consistency in employment can reassure lenders and increase your approval chances.

Property Appraisal Challenges:

Sometimes, a mortgage decline occurs due to a property appraisal that falls short of the desired loan amount. The property’s value serves as collateral for the mortgage, so lenders want to ensure its worth. If faced with this situation, explore options to address the appraisal challenge. Renovations or repairs that increase the property’s value may help. Alternatively, consider searching for another property within your budget.

High Debt Levels:

Excessive debt can hinder your mortgage approval. Lenders analyze your debt-to-income ratio, considering your existing obligations. Lowering your debt levels should be a priority. Create a budget, cut unnecessary expenses, and channel extra funds toward debt repayment. Consider debt consolidation to streamline payments and potentially reduce interest rates. Demonstrating responsible debt management will make you a more attractive borrower.

Seek Professional Mortgage Guidance:

When faced with a declined mortgage, seeking professional guidance is crucial. A mortgage broker can be your trusted ally in navigating the complex mortgage landscape. They have access to various lenders, loan options, and expertise to analyze your situation. A broker will tailor solutions based on your unique circumstances, potentially matching you with a lender who specializes in accommodating borrowers facing similar challenges.

While a declined mortgage may feel discouraging, it’s essential to remember that there are solutions for every situation. By addressing credit issues, boosting income, stabilizing employment, overcoming property appraisal challenges, reducing debt, and seeking professional guidance, you can increase your chances of mortgage approval. Persistence, determination, and a strategic approach will pave the way to homeownership. So don’t give up! Keep striving, and soon enough, you’ll be celebrating your mortgage approval and stepping into the home of your dreams.

 

 

10 Jul

Declined for a Mortgage? There’s Still Hope!

Bad Credit

Posted by: Scott Trainor

Getting a decline for a mortgage can be very frustrating. You’ve been dreaming of owning your own home, shopping around for the perfect mortgage deal, and suddenly…bam! If you receive the news that your mortgage application has been declined there are things you can do. Cue the dramatic music! But fear not, intrepid homebuyer! In this blog post, we’ll dive into what to do when faced with a mortgage rejection. And hey, we’ll sprinkle in some humor to lighten the mood because laughter is the best medicine, even when dealing with mortgages!

Crumpled up paper, legal pad and pen

Even when faced with mortgage rejection, keep writing your homeownership dreams down. The journey may have bumps, but your determination will lead you to success.

Planning to take a break:
  1. Don’t Panic, Grab a Cup of Tea (or Coffee): When that “declined” email lands in your inbox, it’s natural to feel a rush of emotions. Take a deep breath, step away from the computer, and make yourself a comforting cup of tea (or coffee, if that’s more your style). This little break will help clear your mind and give you the energy to tackle the next steps. Try this quick mindfulness video.
  2. Playing Detective – Uncover the Why: The key to turning your mortgage misfortune around lies in understanding why your application was rejected. Was it because of your credit score, employment history, or perhaps some other mysterious reason? Channel your inner Sherlock Holmes and get to the bottom of it. Reach out to your mortgage broker or lender and ask for feedback. Once you know the reason, you’ll have a better idea of what to focus on next.
  3. Repair Your Credit – Time to Break Out the Toolkit: If your credit score played a significant role in the mortgage decline, it’s time to put on your tool belt and start repairing it. Paying off outstanding debts, ensuring all your bills are paid on time, and avoiding applying for new credit help. Thinking of it as a DIY credit makeover project that will help boost your chances of getting approved in the future.
  4. Save, Save, Save – Penny Pinching Never Felt So Good: While you’re working on repairing your credit, it’s also an excellent time to save up some extra cash. Lenders often appreciate a robust savings account as it demonstrates your financial stability and ability to handle mortgage payments. So cut back on those fancy dinners out, skip the pricey vacations (for now), and channel your inner money-saving ninja.
Not ready to quit trying:
  1. Seek Professional Guidance – The Wise Sensei of Mortgages: Remember that mortgage broker you initially approached? They are your secret weapon in this homeownership quest. Mortgage brokers have extensive knowledge of the lending landscape and access to various lenders and loan products. They can analyze your situation, suggest alternative options, and guide you towards the right path. Think of them as your wise sensei, leading you to mortgage success. Remember different lenders have different policies. There are also different levels of lenders as you can read here.
  2. Learn from Rejection – Embrace Your Inner Yoda: As Yoda would say, “The greatest teacher, failure is.” Take the lessons learned from your mortgage rejection and apply them to improve your future chances. Maybe it’s time to reassess your budget, reconsider the type of property you’re aiming for, or even seek advice on how to better present your financial situation. With each setback comes an opportunity for growth and improvement.

Being declined for a mortgage can feel like a temporary detour on your path to homeownership, but it’s not the end of the road. Armed with resilience, humor, and a dash of Sherlock Holmes’ detective skills, you can bounce back stronger than ever. Repair your credit, save diligently, seek guidance from your mortgage broker, and learn from the experience. Remember, the perfect mortgage match is out there, waiting for you to charm it into approval. Good luck on your mortgage journey, and may the force be with you!

7 Jul

Scott Trainor Mortgage Broker

First Time Home Buyer

Posted by: Scott Trainor

Scott Trainor your mortgage broker is your expert in securing your houses financing. Still, when it comes to finding the right mortgage broker, experience, knowledge, and a commitment to exceptional service are paramount. We will explore the qualities that make Scott Trainor Mortgage Broker a trusted partner in navigating the mortgage landscape.

Photo of Scott Trainor mortgage broker

Photo of Scott Trainor Mortgage Broker Saskatoon

  1. Unmatched Experience and Expertise

Scott Trainor boasts a wealth of experience in the mortgage industry, having worked with a diverse clientele over many years. His expertise spans a wide range of mortgage products, including residential, commercial, and investment mortgages. Scott’s in-depth understanding of the mortgage market, coupled with his ability to analyze complex financial situations, enables him to offer tailored solutions to his clients. Scott Trainor is a national award winning mortgage broker.

  1. Client-Centric Approach

One of the key differentiators is his unwavering commitment to client satisfaction. Emphatically, Scott believes that every client is unique, and therefore, their mortgage needs should be treated as such. He takes the time to listen to his clients’ goals, financial circumstances, and aspirations. Taking that information he ensures that he provides personalized advice and mortgage options that align with their specific requirements.

  1. Extensive Network of Lenders

Certainly, navigating the mortgage landscape can be daunting, particularly for first-time homebuyers. Scott Trainor understands the importance of having access to a diverse network of lenders who offer competitive rates and flexible terms. With his extensive connections in the industry, Scott can connect his clients with the right lenders, increasing their chances of securing favorable mortgage terms.

  1. Simplified Mortgage Process

Mortgage applications often involve complex paperwork and lengthy procedures. Scott Trainor Mortgage Broker simplifies this process for their clients. Scott guides his clients through each step of the mortgage journey, ensuring they have a thorough understanding of the requirements and timelines. By streamlining the application process and leveraging his experience, Scott reduces stress and saves his clients valuable time.

  1. Constant Communication and Support

Surely, effective communication is vital when dealing with mortgages. Scott Trainor recognizes the importance of keeping his clients informed throughout the mortgage process. He maintains open lines of communication, promptly addressing any questions or concerns that may arise. After all, it’s providing updates on the application progress or offering advice on financial matters, Scott ensures his clients feel supported and confident in their decisions.

  1. Ongoing Mortgage Management

Scott Trainor’s commitment to his clients extends beyond the mortgage application process. He provides ongoing mortgage management services, helping clients navigate changes in their financial circumstances, refinancing opportunities, and potential interest rate adjustments. By regularly reviewing their mortgage solutions, Scott ensures his clients are well-positioned to make informed decisions that align with their long-term goals.

Choosing the right mortgage broker is a critical step towards achieving your homeownership or investment dreams. Scott Trainor Mortgage Broker offers the perfect blend of experience, personalized service, and expertise required to navigate the complex mortgage landscape. With Scott as your trusted partner, your mortgage journey will be guided with integrity and excellence.

Contact Scott Trainor Mortgage Broker today to embark on your path towards securing the ideal mortgage solution that meets your unique needs.

6 Jul

Mortgage Broker for First-Time Home Buyers

First Time Home Buyer

Posted by: Scott Trainor

Purchasing your first home is an exciting thing, and finding a mortgage broker for first-time home buyers is especially important. This is because it can also be a hard and overwhelming process. As a first-time homebuyer, one of the major decisions you’ll face is where to obtain your mortgage. While many people turn to their banks for financing, there’s an alternative that can provide you with numerous advantages. This solution is working with a mortgage broker. In this blog post, we’ll explore the pros of using a mortgage broker for first-time home buyers. As opposed to your bank and how they can help simplify the home buying journey.

First-time home buyers holding kets to new house

A first-time home buyer family looks at their new home.

Extensive Market Access and Choice:

One of the biggest benefits of working with a mortgage broker is their access to a wide range of lenders and loan products. Unlike banks, that only offer their own mortgage options, brokers have access to multiple lenders, including banks, credit unions, and private lenders. This means they can shop the market on your behalf. After, a broker will present you with a variety of loan options that work with your needs. This access to different lenders and products gives you a greater chance of finding the best mortgage rates, terms, and conditions.

Expert Advice and Guidance:

Navigating the mortgage process can be complex, especially for first-time home buyers. A mortgage broker acts as your personal guide, helping you understand the ins and outs of mortgage options, interest rates, repayment terms, and more. They take the time to assess your financial situation, goals, and preferences to recommend the best mortgage option. With their expertise, brokers can clarify any confusion and empower you to make informed decisions.

Save Time and Effort:

Shopping around for mortgages can be a time-consuming task. A mortgage broker simplifies this process by doing the legwork for you. They handle the paperwork, gather the necessary documents, and negotiate with lenders on your behalf. This not only saves you time and effort but also ensures that your mortgage application is accurate and complete, reducing the risk of delays or complications.

Access to Specialized Mortgage Programs:

Certain mortgage programs are designed specifically to assist first-time home buyers, such as government-backed loans or programs with lower down payment requirements. A mortgage broker can help you navigate these specialized programs. Thus ensuring you are aware of all available options that suit your financial situation. They can explain the eligibility criteria, guide you through the application process, and increase your chances of securing favorable loan terms.

Personalized Support:

Unlike banks that often prioritize various financial services, a mortgage broker offers personalized attention focused solely on your mortgage needs. They build long-term relationships with their clients, taking the time to understand your goals, financial situation, and future plans. By tailoring their services to your unique circumstances, mortgage brokers strive to find the mortgage solution that aligns best with your short-term and long-term objectives.

When getting a mortgage for your first home, enlisting the expertise of a mortgage broker can be a game-changer. Their extensive market access, expert advice, and personalized support set them apart from traditional banks. By working with a mortgage broker, you gain access to a wider range of mortgage options, save time and effort, and benefit from specialized programs and tailored recommendations. So, take advantage of the advantages a mortgage broker offers, and embark on your home buying journey with confidence.

5 Jul

Mortgage Options in Warman Saskatchewan

Warman

Posted by: Scott Trainor

Mortgage options in Warman Saskatchewan are plentiful and we will dive into those in this blog post. As the preferred mortgage broker serving this vibrant community, we are thrilled to guide you through the maze of mortgage options and help you find the perfect fit for your dream home. Let’s embark on this journey together and uncover the multitude of mortgage opportunities that await you in Warman!

Warman Legends Golf Course

Beautiful Warman, Saskatchewan. The Fastest growing city in Saskatchewan

Understanding Warman’s Unique Appeal:

Nestled in the heart of Saskatchewan, Warman is a thriving city that perfectly balances small-town charm with modern amenities. With its stunning landscapes, friendly residents, and a strong sense of community, it’s no wonder that so many families are choosing to call Warman home. The local real estate market offers a range of options to suit your needs. Whether you’re a first-time homebuyer or looking to upgrade to a larger property.

Exploring Mortgage Options in Warman Saskatchewan:
  1. Conventional Mortgages: for clients having a good credit score and a down payment of at least 20%. With competitive interest rates and flexible terms, this traditional mortgage route offers stability and long-term savings.
  2. Fixed-Rate Mortgages: Stability and predictability are key with fixed-rate mortgages. By locking in an interest rate that remains constant throughout your mortgage term, you can plan your budget with confidence, knowing that your monthly payments won’t fluctuate.
  3. Variable-Rate Mortgages: For those seeking flexibility. With interest rates tied to the market, your monthly payments may vary, but you have the potential to take advantage of lower rates in the future.
  4. Government Programs: As your trusted mortgage broker in Warman, we can also help you explore various government-backed programs. From the Canada Mortgage and Housing Corporation (CMHC) insured mortgages to Saskatchewan-specific programs, we’ll guide you through the eligibility criteria and application process.
Why Choose Us as Your Preferred Mortgage Broker:

When it comes to navigating the complex mortgage landscape, having a knowledgeable and trustworthy partner by your side is essential. As the preferred mortgage broker for Warman, our dedication to exceptional customer service and deep industry expertise sets us apart. Here’s why you can count on us:

  1. Local Expertise: Our team understands the unique dynamics of the Warman housing market. We stay up-to-date on the latest trends, ensuring that you receive tailored advice that reflects the local conditions.
  2. Extensive Network: Over the years, we’ve built strong relationships with lenders, allowing us to connect you with competitive mortgage rates and favorable terms. We’ll negotiate on your behalf, striving to secure the best deal possible.
  3. Personalized Guidance: We take the time to understand your financial goals and aspirations. This allows us to craft personalized mortgage solutions that align with your unique circumstances. Your dreams are our top priority!
Conclusion:

Embarking on the homeownership journey in Warman, Saskatchewan, is an exciting and rewarding experience. With an array of mortgage options at your fingertips and our expertise as your preferred mortgage broker, you can confidently navigate the path to homeownership. Remember, we’re here to guide you every step of the way, helping you find the ideal mortgage option that fits your needs, budget, and future aspirations. Get in touch with us today, and let’s turn your dream of owning a home in Warman into a reality!