Putting down less than 20% on a home purchase in Canada is about to get a bit more expensive.

CMHC (Canadian Mortgage Housing Corporation), a government crown corporation announced this morning that as of May 1st, 2014 premiums on insured mortgages will be going up.

See the table below to see the increases. CMHC has not raised premiums since the 1990's and actually lowered them twice in the early 2000's. 

It is expected that private competitors, Genworth and Canada Guaranty, will follow suit and raise premiums as well.

On a purchase of a $350,000.00 house with 5% down the increase will raise monthly payments by $6.99, or $419 over a five year term.  

This will affect the buying power of First Time Home Buyers the most, who have already been hurt by the limiting of amortization to 25 years along with other recent changes to flexible down payment options.

Buying a home for the first time can be a hostile, confusing, scary, exciting, momentous event in your life.  By using The Mortgage Associate at TMG Saskatoon, Scott Trainor, the process can be smoother than a newly paved road.

Almost 90% of first time home buyers in Saskatoon now research purchasing a home three months before calling a realtor or a mortgage broker. Which makes me wonder what those buyers are looking at!

Without knowing the amount you can afford you are just playing with your emotions by looking at homes out of your price range (or under!) Why look at places like this when you can only afford $600,000? The first major step toward making homeownership a reality is getting pre-approved for a mortgage by a Saskatoon mortgage broker.

With The Mortgage Associate at TMG Saskatoon, Scott Trainor, your mortgage pre-approval is a way to find out what you can afford in as little as five minutes!

Once you've been pre-approved you can start house shopping! I usually recommend using one of my Premier Real Estate Agents.

Looking and searching for homes is the fun part of the process, enjoy it and making it an enjoyable time! Once you find the home of your dreams you put in an offer on the home.

In the offer your Realtor will give us time to get financing called the Condition of Financing. Once We have submitted and been approved by the bank we can remove that condition! 

Once removed you will have to sign with me and then about a week before possession you will sign at your lawyers office!

Mortgage lenders in Canada are finally forced to show you what your penalty would be on your mortgage. This is awesome! In the past they would have forced you to come into the branch and tried to convince you to stay at your high interest rate.

Check out the links below to look at your penalty!

• TD Canada Trust
  
• Royal Bank of Canada
• CIBC
• Scotiabank
• Bank of Montreal
• HSBC
• ING Direct
• National Bank of Canada
• First National Financial
• MCAP
• Merix Financial

Recently with rental rates soaring in Saskatoon, I have many mortgage clients looking to fill their portfolio with investment properties. Most clients are noticing there to be a nice niche in the landlord business and as The Mortgage Associate at TMG Saskatoon I can help. One tactic that is generally felt to be a good practice is putting the rental property into your businesses name for tax purposes as well as many other positives that I can discuss.

As The Mortgage Associate at TMG Saskatoon, I offer many different lending companies who offer this product. The one thing I was recently surprised to find is I have a lender who is able to put rental properties into a non holding company name. Up until this finding I had been told that lenders will only put rental properties into holding company names due to security.

So if you or any of your business partners are looking at putting a property in your companies name give me a call!


-ST