Million Dollar Mortgages in Saskatoon

General Scott Trainor 12 May

Million dollar homes are becoming more and more common in the Saskatoon market, this article is to help you understand the difference of buying a six and a seven figure home. Areas such as Greenbryre, The Willows, Sask Cres., Spadina Cres. are home to high end homes that will check all of the boxes you are looking for. Even COVID-19 hasn’t slowed the high end home market in Saskatoon with many areas seeing strong growth.

Can you afford a million-dollar home?

Here’s the short answer: To buy a million-dollar home in Saskatoon, you’ll need an annual household income of at least $170k, as well as a cash down payment of at least $200,000. That’s the minimum you’ll need in order to qualify for a large enough mortgage.


Getting a million-dollar mortgage

Most Canadians buying a $1,000,000.00 home don’t have a million in cash just lying around. Most of them would need to save a down payment and take on a mortgage to help purchase a million dollar home.

So, can you afford to get a mortgage for a $1 million home? There are two key factors that affect your mortgage affordability – your down payment, and your gross debt service ratios.

Your down payment

Not having a big enough down payment is what eliminates most buyers from buying a million home. Saving for a down payment is hard enough, but Canadian policy is that homes with a purchase price of over $1 million require a down payment of 20% or more.

Since an insured mortgage is out of the question for a $1,000,000 home, you’ll need a minimum 20% down payment ($200,000), resulting in a typical mortgage on a million-dollar home of $800,000.

If you’re one of the few Saskatonian’s with a large enough down payment – congratulations! Now let’s look at whether you can afford the mortgage payments on a million-dollar home.

Debt service ratios

Your debt services ratios determine whether you can afford the payments on a million-dollar mortgage.

Gross debt service ratio:
Your GDS ratio controls whether you can afford the monthly carrying costs associated with your house. Your lender will add your annual mortgage payments to the costs of owning your home, then divide this by your annual household income. To qualify for the loan, the resulting ratio must be less than 39%.

Total debt service ratio:
Now let’s look at the next debt service ratio: your TDS. This ratio takes the factors above into account, but also adds in any debt requirements you may have. This ratio must stay below 44%.

To satisfy both debt service ratios, you’ll need an annual income of at least $170,000 to afford a home worth over $1 million.

The Bottom Line

Buying a $1 million home isn’t an easy feat. You’ll need a large down payment, and your debt levels should be under control. You’ll need a high income and the ability to handle renewing your mortgage at higher interest rates. The good news is that if you meet those requirements, you can afford a $1 million home’s monthly payment – or maybe even a $1.5 million house dollar monthly payment. If you’d like to see what you can approve for click here!

Making The Grade: Common Myths About Credit Scores.

General Scott Trainor 27 Apr

How is your credit score calculated? It is a complex answer and, as such, common myths persist. Today, we are going to help you get a better understanding of your credit score and how to make the grade by busting the most common credit score myths!

MYTH #1: TOO MANY CREDIT CARDS WILL HURT MY CREDIT SCORE

The reality is that cancelling healthy, active cards or accounts hurts more than having too many. When you cancel a card, all your payment history is lost as well as the type of credit granted. While you may think having a couple credit cards is extreme, the average Canadian has TEN credit sources. What many Canadians don’t realize is that lenders want to see a history of credit; they want to see payments made on time. In addition, lenders also want to see balances maintained at no more than 70% of your credit limit in use. So, if you have a $10,000 credit card, you don’t want to owe more than $7,000 on it at a time.

MYTH #2: AVOID USING CREDIT CARDS IF YOU WANT TO BUILD CREDIT

It is easy to think that different forms of credit matter more than others, but that is simply not the case. In fact, all lenders want to see is a history of credit and payments made on time. This is what will build your credit score and, eventually, give you the ability to qualify for financing. A history of on-time payments and manageable balances shows the lender that you are a promising investment and not likely to default.

MYTH #3: PAYING MONTHLY UTILITIES BUILDS CREDIT

Unfortunately, paying utilities does not build credit. In fact, these providers only check your credit score to determine creditworthiness; they don’t report your payment history to the bureau. Unless you are late to pay, that is. The other organizations that only report on default are municipalities and vehicle insurance providers, so make sure you keep these payments up-to-date. Be sure to pay any traffic tickets and bylaw infractions too!

MYTH #4: I CAN’T DO ANYTHING ONCE A PAYMENT IS LATE

Don’t be discouraged. Lenders understand that you are only human and, in many cases, they are often willing to work with you if there is a late payment. If they are notified within a timely manner, a late payment can be easily reversed. Just be careful not to make a habit of it.

MYTH #5: CHECKING MY CREDIT SCORE WILL DECREASE IT

No exactly. There are two types of credit inquiries: soft and hard. A soft inquiry occurs when you pull your own credit report. Credit card companies also pull this type of inquiry when marketing pre-approval offers. Soft inquiries do not affect your credit score.

A hard inquiry, on the other hand, is triggered by the applicant when submitting a loan or credit card applications. As a result, hard inquiries will affect your credit score slightly as they are included in the calculation done. Recording the number of inquiries a consumer has on the credit report allows potential lenders to see how often a consumer has applied for new credit; this can be a precursor to someone facing credit difficulty. Too many inquiries could mean that a consumer is deeply in debt and is looking for loans or new credit cards to bail themselves out. Another reason for recording inquiries is for preventing identity theft. Hard inquiries that aren’t made by you could possibly be from a fraudster trying to open accounts in your name; therefore only individuals with a specific business purpose can check your score. Creditors, lenders, employers and landlords are some examples of approved business people. The inquiry only appears on the credit report that was checked.

In addition, hard inquiries remain on all credit reports for two years, after which they are removed. Soft inquiries only appear on the report that you request from the credit bureaus and will not be visible to potential creditors.

Credit score plays a vital role when it comes to potential financing for car loans, mortgages, or even personal loans. It is important to recognize good credit habits now and maintain them for a higher credit score today, and better chance of financial approval in the future.

Find a bad credit mortgage lender

General Scott Trainor 3 Apr

People with bad credit have options when it comes to getting a mortgage. For a mortgage from a big bank in Canada, you need a minimum FICO score of 600. With scores below 600, most banks will decline you for a mortgage loan.

If you don’t meet the minimum credit score, you’ll have to look for an alternative lender or B lender. These B lenders, work mostly with people that do not have awesome credit scores.

For the toughest deals we use Private lenders. We use privates usually for the easiest approval, but require the most amount of equity and have the highest rates.

Category’s of Canadian Mortgage Lenders

Major Banks – Prime Lenders Financial institutions, including the big banks with more conservative lending requirements. 600-900 Best! Scotiabank
B Lenders Financial institutions catering to those with bad credit 500-700 Best rate + 1-2% typically MCAP Eclipse
Private Lenders Private companies or individuals who loan funds backed by real estate properties <500 8%+ VWR

 

If you work with a B lender, you’ll most likely pay some extra fees:

  1. Your B lender may charge a loan processing fee of up to 1% of the mortgage’s value.
  2. Typically we also charge a fee usually around 1%. This fee is charged because lenders don’t typically compensate mortgage brokers for tough mortgage clients, this cost is passed along to you.

When placing a mortgage with a B side lender, we always coach. There is no reason why a client should sit in a high rate for an extended period of time. Typically, after two to three years we pull most of these clients back to a regular A side lender.

Airport Drive becomes DLC FRESH MORTGAGE CO.

General Scott Trainor 16 Feb

AIRPORT DRIVE JOINS DOMINION LENDING CENTRES

It is with much excitement that I can announce the grand opening of our new brokerage named DLC Fresh Mortgage Co.! Although our name has changed, we’re still located at the same great address with the same telephone number!

I’m stoked to let you know that Saskatchewan’s #1 mortgage office by volume (CMP Magazine 2017-2019) is only getting better. We still have the same terrific team of Mortgage Professionals offering excellent service to ensure you receive the best rates and products catered to your unique needs.

Since we’re now part of the number one Mortgage Broker company in Canada, we have expanded access to additional lenders. More lenders mean more options and added savings for our valued clients. This should improve out ability to get as many deals approved as possible. Number one in Saskatchewan joins number one in Canada, only makes sense.

Dominion Lending Centres is focused on providing great systems so we can easily communicate market conditions, interest rates and vital homeowner information to you moving forward. While making it easier and safer to do mortgages during these unprecedented times.

We still have one simple goal in mind – to provide every one of our past and future clients with unbelievable service, options and the very best mortgage options to meet your unique needs.

If you are looking for a new mortgage click the apply now! We will set up the first contact and start working to get you approved.

Check out our new IG here.

Scott Trainor

Ultimate Checklist for Selling Your Home.

General Scott Trainor 13 Feb

Selling your home can be an extremely stressful experience. Between thinking about moving logistics and financials, it’s easy to miss the small details in between the process.

With that in mind, we’ve built this checklist for selling your home to help you keep track of the things that will get a potential buyer interested. Turns out, it’s not as simple as just fluffing pillows or doing a light dusting. “Put your buyer’s hat on and walk through your home like it is the first time,” Marilou Young, an Accredited Staging Professional and an Associate Broker with Virtual Properties Realty in the metropolitan Atlanta area, told Forbes.

Below is the ultimate checklist for selling your home.

GET FAMILIAR WITH THE PAPERWORK
For home sellers interested in the history of the house, make sure you’ve got all the information handy; this can include paperwork on renovations, property tax receipts, deeds and transferable warranties.

GETTING THE PRICE RIGHT
According to HGTV, it can be helpful to do some market research on what homes in your area are selling for- then shave 15 to 20 percent off that. This way, you attract multiple buyers who can end up outbidding each other and bringing up the price. While that can seem like a risky move, it could work in the competitive markets of big Canadian cities.

DEPERSONALIZE AND DECLUTTER
You want potential buyers to see themselves in the space, which is hard to do if you have family photos on the wall or personal items around. This would be a good time to start putting items in storage or try to keep your personal items out of sight. At the same time, you’re also ensuring that you’re keeping your house tidy—a must if you want to make your home sellable. Check around the house for dirt, stains or small cracks you might be able to fix. And if you have pets, make sure their litter boxes and play areas are also clean and odour-free.

FIND A QUALIFIED REALTOR
Realtors can be helpful to take some of the processes off your plate, including marketing your home and arranging open houses. If you do go this route, none of this list will matter if you decide to work with a realtor that doesn’t know the market inside out. You can search their name on the Real Estate Institute of Canada to ensure that they’re qualified, and meet with them to see if you mesh and understand how they price your unit. At Proptalk, we also have this handy guide for more details.

DON’T SKIP THE HOME INSPECTION
While presenting an unconditional offer may win you the home of your dreams, it can also end up costing you more than you expected. If you’re mortgaged to the max, you can’t afford surprises like repairs or replacements that you haven’t already budgeted for. Consider a Home Protection Plan that includes an 18-month warranty and up to $20,000 in warranty coverage for major household features such as foundation, roof, heating and cooling.