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Buying a new home can be stressful. Here’s some tips.

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Five tips for mitigating the stress that comes when you decide on buying a new home

There’s no arguing, whether or not you’ve done it before, that buying a new home is stressful. A home is one of the most significant financial investments you can make throughout your lifetime, and in the process, several unforeseen things can come up that might throw you for a loop. But worrying and feeling stressed won’t help you get readily moved into a new home. Try to take your time, do your homework, and enjoy your life with this exciting move. Here are five strategies for handling home purchasing stress.

  1. Set Clear House-Hunting GoalsBuying a new home

Have a realistic overview of what you want before starting the hunt. If you’re uncertain of what you’re looking for, you’re going to spend a lot of time looking at houses that will not suit your aesthetic or lifestyle, not to mention your budget. Consider factors such as housing type, number of bedrooms and bathrooms, exterior type, square footage, distance from work and school, levels of noise, neighbourhoods, and the amount of maintenance needed.

  1. Be Flexible

Decide which features you can live without after you’ve built a checklist for your dream home. The chances of finding a home that checks all the boxes are low, so it is likely to compromise on some of your demands (but that doesn’t mean you have to settle for a house you don’t like). Determine for you and your family the most important aspects of a home, and bear in mind that being fair with your demands could mean having more choices to choose from.

  1. Budget And Save

mortgage rates canadaThe most significant stress aspect of the home buying process could be money issues. The cost of purchasing a home is high; bear in mind that you will need to save for items like home assessments and inspections. Determine how much house you can pay and where most of your money will be spent, such as renovations or real estate taxes, for example.

  1. Weigh The Pros and Cons of Using A Real Estate Agent

We realize that you want to do it personally, but it could reduce the stress of buying a house by working with a real estate agent. A real estate agent’s experience will make you feel more secure because they can make a deposit and down payment, set a closing date, calculate closing costs, and arrange inspections. You want to deal with someone who has your best interests at heart, so try to select an agent from trusted friends or family who comes with strong recommendations.

  1. Take a Deep Breath

The only thing left to do is to relax once you have submitted your best bid and signed a purchasing agreement with which you are satisfied. Focus on other items that need your undivided attention while you’re waiting for the seller to respond. To chat about your problems, call friends or family members who have bought a house before, but don’t let your fears take over.

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Mortgage broker : A rebound is expected from housing market

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Mortgage rates: Where to Start?

Maybe it is because we were one of the first provinces in Canada to reduce the social distancing measure, but the housing market in Saskatchewan is showing great signs of improvement. In fact, we have observed a rebound of 80% since the lowest point of the COVID crisis. Robert Hogue, an RBC senior economist, has said that Regina has one of the strongest rebounds in all of the RBC tracked markets. This being said, it might be a good time for you to consult your mortgage expert. 

What happened To The Housing Market?

When the COVID outbreak happened a couple of months ago, the housing market in Canada had to face a lot of problems. The number of sales compared to other years was down 14% (compared to the month of May last year). There were 20% fewer new listings and the average price of those listings was down almost 6%. 

Even with such negative numbers, there is still hope when it comes to mortgages. The recession that was caused by the COVID pandemic has created a recession in which Saskatchewan is performing quite well and it is continuing to improve as more and more of the province are starting to re-open. 

What was, only a couple of months ago, a terrifying situation for homeowners in Saskatchewans has turned into new opportunities. The number of sales and the prices are starting to go back to where they were in April (before the crisis). This improvement will help a lot of people who own mortgages to reduce their level of stress towards the pandemic effect on the value of their homes. 

 

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What’s Going To Happen?

A lot of what is to come is unknown for now because this is the first pandemic of this importance worldwide. A big reason that drove the prices of the housing market down was that there was more inventory than there was demand because people did not want to buy houses during the pandemic due to loss of employment or economical instability. 

What we are observing now is a rise in the housing demand and a lot more people are consulting their experts in mortgage to see what opportunities were created during the pandemic. With more people buying houses and the economy returning slowly to what it was, the housing market is expected to not only stabilize but also go back to what it was.

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Contact Me For Your Mortgage Broker Needs

If you are looking for a new home in this market of opportunity, you should give me a call to see what can be done about your new mortgage. I am always staying ahead of the curve to make sure that you get the best deal for your mortgage. Give me a call today to see what kind of house you are able to afford in this unique situation that will slowly but surely go back to normal.  

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When, and When Not, to Refinance Your Mortgage

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When is a Good Time to Refinance Your Mortgage?

Refinancing a mortgage means paying off your existing loan and replacing it with a new one. There are many reasons why homeowners refinance, to obtain a lower interest rate, to shorten the term of their mortgage, to convert from an adjustable-rate mortgage to a fixed-rate mortgage, or vice versa, to tap into home equity to raise funds to deal with a financial emergency, finance a large purchase, or consolidate debt. Since refinancing can cost between 2% and 5% of a loan’s principal and, as with an original mortgage, requires an appraisal, title search, and application fees, it is important for a homeowner to determine whether refinancing is a wise financial decision. While speaking with a mortgage broker, like Ryan Michell, is always the best choice, here are a few ways to decide if refinancing is the best choice for you.

Refinancing to Secure a Lower Interest Rate

One of the best reasons to refinance is to lower the interest rate on your existing loan. Historically, the rule of thumb is that refinancing is a good idea if you can reduce your interest rate by at least 2%. However, many lenders say 1% savings is enough of an incentive to refinance. Reducing your interest rate not only helps save money, but it also increases the rate at which you build equity in your home, and it can decrease the size of your monthly payment. For example, a 30 year fixed rate mortgage with an interest rate of 5.5% on a $100,000 home has a principal and interest payment of $568. That same loan at 4.1% reduces your payment to $483.
Refinancing to Shorten the Loan’s Term
When interest rates fall, homeowners sometimes have the opportunity to refinance an existing loan that, without much change in the monthly payment, has a significantly shorter term. For a 30 year fixed rate mortgage on the same $100,000 home, refinancing from 9% to 5.5$ can cut the term in half to 15 years with only a slight change in the monthly payment. The payments change depending on the rate etc., so doing the math and seeing what works is best to do beforehand.

Refinancing to Tap Equity or Consolidate Debt

While the previously mentioned reasons to refinance are all financially sound, mortgage refinancing can be a slippery slope to never-ending debt. Homeowners often access the equity in their homes to cover major expenses, such as the costs of home remodelling or a child’s college education. These homeowners may justify the refinancing by the fact that remodelling adds value to the home or that the interest rate on the mortgage loan is less than the rate on money borrowed from another source. Many homeowners refinance to consolidate their debt. At face value, replacing high-interest debt with a low-interest mortgage is a good idea. Unfortunately, refinancing does not bring automatic financial prudence. Take this step only if you are convinced you can resist the temptation to spend once the refinancing relieves you from debt.

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Overall, the best way to determine if refinancing is best for you, is to speak with an expert. Ryan Michell is a mortgage broker who is an expert in refinancing mortgages and can work with you to ensure you make the right decisions.