Saskatchewan Mortgage Insurance Information | Regina Mortage Calcultaor
Here in the Great White North, there are 3 different Saskatchewan Mortgage Insurance Providers. Which are CMHC, Genworth Financial and Canada Guaranty. Oddly their services are nearly identical with a few wavering differences in plans, but they all do the same thing... They protect YOUR lender's money.
The question we always get asked is 'Do I need it?', 'How do I pay for it?' and 'Is it negotiable?' Well here is the breakdown.
Do you need it? - If you have a down payment of less than 20%...then you need it. If you have a down payment of 20% or larger...you may not need it...even if you have 25% to put down...you still may need it.
How do I pay for it? - Good News - the lender adds the insurance cost to your mortgage and they pay it directly to the Mortgage Insurer.
Is it negotiable? - No. Mortgage Insurance is non-negotiable. It is set up on a sliding scale based on the size of your down payment and/or the product you require.
To learn more about Regina Mortgage Insurance, we welcome and encourage you to visit this CMHC link.
For example...let's say you buy a house for $100,000.00 and you have $5,000.00 for a down payment. That would put you in the 3.15% Mortgage Insurance Premium box. The LTV (Loan to Value) falls in the Up to and including 95% category...that means you are borrowing 95% of the amount needed to buy your house.
The other figures you see apply to refinances...typically refinances are restricted to a maximum of 80% LTV...so the premium there, if the lender chooses to insure - would again be 3.15%. In most cases this premium is absorbed by the lender. In other cases it is not. Howvere, the figures change if you are self-employed.
Fun Facts about Regina Mortages.
Fun fact about Energy Efficient Homes - You can get up to 10% of your Mortgage Insurance Premium back in your pocket if your home qualifies!!
Another Fun fact - Our Mortgage Calculator already takes in to account your potential Mortgage Insurance Premium! Hurry - go check it out. We're pretty proud of it!
Don't worry though...you are not out of luck. You can still get a mortgage...the process is a bit hairy, but it can be done! Basically what Focus Mortage Solutions does for you is we "state" a reasonable annual income for your particular industry.
Take for example an Owner/Operator Truck Driver. This individual accumulates a ton of expenses. Everything from Fuel to Food. At the end of the day, this persons income could go from $125,000.00/year in earnings down to $41,000.00 after expenses. And that $41,000.00 is what ends up being declared on Line 150 for Income Tax.
This person's true income is $125,000.00/year and it's reasonable so we can "state" this income...or something close to it. We might only need to state $80,000.00.
In order for you to qualify for this product, the applicant must have:
1. A Credit Score of NO LESS than 650 on Equifax.
2. A Down Payment of NO LESS than 10% - and it can only come from applicants Savings or Investments. Sorry, no gifts from family and it can't be borrowed either. You will have to show a minimum of 90 Days of accrued Savings/Investments. (In the event of a Refinance, then the maximum of 80% of your Home's value is allowed to be refinanced.)
3. Industry experience of NO LESS than 2 Years. So if you own your own welding company...we want to see you have 2 years of self employment in this industry or at minimum 6 months Self Employed History with the 2 years of industry experience from your previous employer.
It's not a "cut and dried" product - and lenders love to request a lot of documenation. Be prepared to provide 2 Years of Most Recent Income Tax, including the T1 General and the Notice of Assessment (NOA) and proof of No Income Tax Owing.
If you do owe Income Tax...it MUST be paid in full prior to receiving your new mortgage.
The extra good news is that you can still enjoy the low interest rates as everyone else! We don't penalize you with a higher rate.
Personal Care and Ethical Lending Pratices | Focus Mortage Soltuions Regina, SK
Creating rapport with our clients is very important to us at Focus Mortgage Solutions. We still wholeheartedly believe in the integrity of a hand shake, instead of replacing that with a generic mailer. We have grown our business because of our dedication to exceptional customer relationships and top-notch Saskatchewan Mortgage Broker services.
Thank you for using Focus's Regina, SK Mortgage Calculator.