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Seniors and Reverse Mortgages

Wed, 08 Aug by Pauline Relkey

A reverse mortgage is a loan that allows you to get money from your home equity without having to sell your home. You may be able to borrow up to 55% of the current value of your home tax-free.

Eligibility for a reverse mortgage
To be eligible for a reverse mortgage, you must be:
a homeowner
at least 55 years old. If you have a spouse, both of you must be at least 55 years old to be eligible.

Qualifying for a reverse mortgage
Your lender will consider:
your home equity
where you live
your age
your home’s appraised value
current interest rates

In general, the older you are and the more home equity you have when you apply for a reverse mortgage, the bigger your loan will be.

Accessing money with a reverse mortgage
You may choose to get the money from your loan through:
lump-sum payment
planned advances, giving you a regular income
a combination of both of these options
You must first pay off any outstanding loans that are secured by the equity in your home with the funds you get from your reverse mortgage.
You can use the remainder of the loan for anything you wish, such as:
pay for home improvements
add to your retirement income
cover healthcare expenses

Repaying the money you borrow with a reverse mortgage
You don’t need to make any regular payments on a reverse mortgage. You have the option to repay the principal and interest in full at any time.
Interest will be charged until the loan is paid off in full. The interest will be added to the original loan amount, which increases the loan amount over time.
If you sell your house or if you move out, you’ll have to make payments. When you die, your estate will have to repay the loan.

Costs to get a reverse mortgage
Costs associated with a reverse mortgage may include:
higher interest rate than for a traditional mortgage
a home appraisal fee
a closing fee
a prepayment penalty if you sell your house or move out within 3 years of getting a reverse mortgage
fees for independent legal advice
Shop around and explore your options before getting a reverse mortgage.

Compare the costs and impact of the following:
getting another type of loan, such as a line of credit or credit card, etc
selling your home
buying a smaller home
renting another home or apartment
moving into assisted living, or other alternative housing

Where to get a reverse mortgage
Two financial institutions offer reverse mortgages in Canada:
HomEquity Bank offers the Canadian Home Income Plan (CHIP). It is available across Canada directly from HomEquity Bank or through mortgage brokers
Equitable Bank offers the PATH Home Plan. It is available through mortgage brokers in Alberta, British Columbia and Ontario
Your financial institution may offer other products that might meet your needs.

Pros and cons of a reverse mortgage
Before you decide to get a reverse mortgage, make sure you consider the pros and cons carefully.
Pros
You don’t have to make any regular loan payments
You may turn some of the value of your home into cash, without having to sell it
The money you borrow is a tax-free source of income
This income does not affect the Old-Age Security (OAS) or Guaranteed Income Supplement (GIS) benefits you may be getting
You still own your home
You can decide how to get the funds

Cons
Interest rates are higher than most other types of mortgages
The equity you hold in your home may go down as the interest on your loan adds up throughout the years
Your estate will have to repay the loan and interest in full within a set period of time when you die
The time needed to settle an estate can often be longer than the time allowed to repay a reverse mortgage
There may be less money in your estate to leave to your children or other beneficiaries
Costs associated with a reverse mortgage are usually quite high compared to a regular mortgage

Questions to ask a lender about reverse mortgages
Before getting a reverse mortgage, ask your lender about:
the fees
any penalties if you sell your home within a certain period of time
how much time will you or your estate have to pay off the loan’s balance if you move or die
what happens if it takes your estate longer than the stated time period to fully repay the loan when you die
what happens if the amount of the loan ends up being higher than your home’s value when it’s time to pay the loan back

Myth: The bank owns the home.
Fact: The homeowner always maintains title ownership and control of their home and they have the freedom to decide when and if they’d like to move or sell.

Myth: The bank can force the homeowner to sell or foreclose at any time.
Fact: A reverse mortgage is a lifetime product and as long as property taxes and insurance are in good standing, the property remains in good condition, and the homeowner is living in the home, the loan won’t be called even if the house decreases in value. Reverse mortgages provide peace-of-mind that the homeowner can stay in their home as long as they’d like.

Myth: Surviving spouses are stuck paying the loan after the homeowner passes away.
Fact: Surviving spouses can choose to remain in the home without having to make a payment unless they choose to sell the home.

Myth: The homeowner cannot get a reverse mortgage if they have an existing mortgage.
Fact: Many people use a reverse mortgage to pay off their existing mortgage and debts, freeing up cash flow for other things.

Myth: A reverse mortgage is a solution of last resort.
Fact: Many financial professionals recommend a reverse mortgage because it’s a great way to provide financial flexibility. Since it’s tax-free money, it allows retirement savings to last longer.

Home is where the heart is, but it’s getting more difficult for seniors to stay in their homes.
93% of Canadian Seniors live at home and prefer to age in place.
60% of retired Canadians say staying in their home is critical to their quality of life.
700,000 Canadian senior-led households face a housing affordability challenge.
Canadian seniors who live alone at home experience poverty at nearly twice the rate of other seniors.
1 in 4 Canadian senior-led households are spending more than 30% of their income on housing.
Only 1/3 of the Canadian workforce is covered by a registered pension plan down from 37% in 1992.
Almost 30% of Canadians who are nearing retirement have $50,000 or less in savings.
35% of those nearing retirement plan to use the value of their home to generate retirement income.
Nearly 70% of Canadians nearing retirement are still carrying debt.

THE TAKEAWAY
Most seniors prefer to live their retirement years at home but live on modest incomes and may face challenges to their financial security. Canadian seniors do benefit from access to CPP, OAS and housing assets but are feeling the pinch.

Tips for the First-Time Home Buyer

Wed, 25 Apr by Pauline Relkey

When venturing into the world of home ownership, first-time buyers often find themselves having to make important, fast decisions in what feels like a surreal situation — after all, it might have only been a few weeks since owning a home seemed more like a far-off daydream than an immediate reality. A few common sense tips will help you navigate these unfamiliar landscapes as you move towards one of the biggest financial decisions of your life.

1. Get pre-approved
Though a pre-approval isn’t a guarantee that you’ll get a mortgage when you’re find a property, having one can give you a firm grasp on what you can afford before you start looking. A pre-approval from your bank or lender will save you time by narrowing your search to a more precise selection of homes, and this, in turn, can protect you from the all-too-common disappointment that follows setting your heart on a house you can’t afford.

2. Don’t expect your standards of living to change
It’s bound to happen: you see a house that maxes out your budget, but you imagine you can make it work by cutting out things like morning coffees, cellular data and cable TV. Remember, ‘roughing it’ for the sake of your house quickly loses its charm, and you’ll soon regret the lack of wiggle room for things like new furniture, redecorating, or unexpected repairs. Don’t regret your first home — avoid becoming ‘house poor’ by staying below the upper limit of what your bank is willing to lend you.

3. Make a list and check it as many times as it takes
Each property you consider will have its own unique combination of pros and cons, and going through them can feel a little like comparing apples to oranges. Don’t expect to stay clear-headed when the house with the poor walking score has the kitchen of your dreams; instead, stay on track by building a list of “must haves” and “nice to haves.” Though your list might evolve over time (especially if the “must haves” are rare for your price range), having a set of self-imposed guidelines can keep your search on course when you’re feeling overwhelmed by options.

4. Don’t confuse “first home” with “forever home”
Most first-time buyers start out a little starry-eyed, imagining that new home will be stylish, spacious, efficient … basically, everything they’ve been dreaming of. In reality, being able to afford a house that has everything you want is pretty rare in the first go-round, which can make you feel so discouraged you start closing yourself off to the available options. Remember, your ‘starter home’ doesn’t have to meet all the criteria of your ‘dream home,’ and the equity you’ll build for the next few years will get you closer to your goal.

With so much new information to absorb, steps to take, and decisions to make, buying a first home can feel like a rollercoaster ride. It’s important not to lose your head throughout all of it. Taking a few steps to keep your expectations rooted firmly in reality can help you glide through the process and feel confident in your final decision.

January Residential Sales and Home Prices Move In Opposite Direction

Mon, 12 Feb by Pauline Relkey

2018 has started off to a solid start compared to the 2 previous years in Regina. (Personally I am saying not much of a change).

143 sales in Regina compared to 139 in 2017 = 2.8%.

The Home Price Index reported a price of $279,400 down from $293,600 one year ago. The downward direction on prices is because of the over supply of properties and it’s pushing sellers to keep reducing their asking prices.

We have 1,133 active residential listings on the market at the end of January, over 20% increase from 2017.

The ratio of sales to new listings for the month was 30% (meaning only 30% of listings sold). Still a buyer’s market.  Condos make up almost 30% of the listings which is high.

Click here for the full report.

Lessons learned from Adam Carolla

Tue, 23 Jan by Pauline Relkey

Some of you may have watched his show called To Catch a Contractor.

Before launching a successful career as a TV and radio personality, Adam Carolla was a master carpenter and home builder, so he knows the work of skilled craftsmen when he sees it. Likewise, he can spot shoddy construction, and in this series he trains his eye on building blunders and the contractors responsible for them. With the help of no-nonsense builder Skip Bedell and his wife, private investigator Alison Bedell, Carolla seeks retribution for homeowners who have experienced a construction nightmare, by tracking down unscrupulous contractors and forcing them to face the wronged parties. The contractors are then given a chance to redeem themselves by fixing messes they left behind — all while under Adam’s and Skip’s watchful .

I watched a few of his shows lately and was pleasantly surprised by some of the lessons that rang so true for me.

The first lesson hit home – Don’t work out of your area of expertise.  This is so true for most, if not all occupations.  If you’re not sure of what you are doing, get some help from an experienced person or refer the job/client to them.  I have experienced this situation many times over the last 26 years in real estate and I do feel badly when I have to tell one of my clients, “No, I don’t work in that area of real estate, but I can connect you with someone good that does work in that area.”  I have chosen to work residential in Regina and close areas around Regina, but real estate in commercial, acreages, cottages is not my area of preference or expertise.  Yes I was licensed quite a few years ago and even though my license does include those specific areas, I have not pursued them because I don’t have the interest in them and haven’t pursued more training in those areas.  I let the people that know what they are doing in these fields handle the clients.

Another lesson he talked about was “Don’t undercut your competition to get the job.”  So true.  Real estate commissions are a high number and we turn blue explaining why (our costs from advertising to insurance to memberships to our split with our company and with the buyers company, etc.)  The costs are a lot of money and thankfully they usually come from the sale price of the house as most property sellers don’t happen to have that amount of money just hanging around, waiting to be spent.

Undercutting happens a lot in my business and it hurts all of us.  Usually the agents that undercut other agents will also undercut their work for their client.  Maybe they don’t advertise as much as others, maybe they don’t spend time following up on showings and leads, maybe they don’t keep in contact with their seller, don’t keep on top of the real estate market and share that info with their clients, etc.  Unfortunately the seller doesn’t find this out until it is too late and they have listed with the agent who offered the lowest commission.  Food for thought – if that agent was so quick to give up their money (commission), how quick do you think they will be to give up your money (sale price of your property) when an offer comes in?  I’ve always believed in the saying, you get what you pay for.  Thanks Adam.

Regina Home Sales Down, Listings at an all time high

Tue, 28 Nov by Pauline Relkey

My summary – even though the above title is true, sellers aren’t budging much when it comes to price.

Listings in Regina reached a record high for October with 1,444 homes for sale.

Sales numbers in and around the city dropped to their lowest level since 2008.

Average time to sell was 61 days which is the longest average listing to sale time in the last decade. The average sale price for October dropped by 1%.

Causes are overbuilding and lack of pressure on both buyers and sellers.

Diversified economy means people still have jobs and thusly sellers don’t feel pressured to sell at lower prices. Sluggish provincial economy causes buyer uncertainty. Buyers feel that prices might soon decrease. Regina has not seen big changes in prices as in other major cities.

Mortgage rules are tighter which reduces buying power.

The complete article is here.

Questions to Consider Before Meeting With a Home Designer

Wed, 13 Sep by Pauline Relkey

Designers typically charge an hourly rate for design services, so clients should do their homework before meeting with one. Think about what you want, what you NEED and what you can afford. If you think about these things before you meet with your designer, it can save you time and money.

To create a home that best serves you and your family, designers need to know your lifestyle, how you use your space, who uses the space and more. In other words, a designer needs to get inside your head. To help you prepare, here are things you should be able to answer about your space before meeting with your designer.

1. Who uses the space, and what activities will take place there? Having a list of all the uses for the space will help your designer get a feeling for the overall function. Is the room a personal space, like an office or a bedroom? If so, s/he might need to focus on creating an inspiring or a calming atmosphere.

Or maybe it’s a family room that is used by the entire family and needs to be a multifunctional place where teens do homework and everyone watches tv and plays games. Answering those questions will allow your designer to hone in on the function of the space, who uses it and why.

Also look at how big the space is. Does it allow for segregated areas or do we need to use a table as a multipurpose piece for both dining and homework?

Furniture that has multiple functions is a big space saver. A coffee table with a top surface for playing games and for extra seating, as well as a storage area below for books and toys, provides versatility.

2. Does the traffic pattern work in the space, or does the space feel cramped or underutilized? A major walkway should be at least 40 inches wide and the larger the walkway, the better. If you report that you often feel as though it’s a tight squeeze when multiple people are using a space, then a designer may remove the furniture and reconfigure it to accommodate a better flow.

For a kitchen usually islands are preferred over peninsulas if possible. An island opens up the space from every direction of the kitchen, whereas a peninsula allows for only one walkway. Again, it depends on the space, and your designer will be able to help you configure the best traffic flow. Sitting down and thinking about those times you’ve bumped into a family member as you’re cooking will give us clues to the right solution for you.

3. What kind of tasks do you need lighting for? Do you read a lot? Crochet? Or do you watch movies in the dark? The right lighting scheme will make your space more functional for all your tasks. If you tell your designer what you intend to do in your space, s/he can formulate the best lighting approach using task, pendant, undercabinet, recessed, ambient or natural light (via light tubes, skylights or a window), along with wall sconces and uplights.

For recessed lighting, use dimmer switches, which are great for low light while watching movies and giving off a soft ambient glow for entertaining. A table light or floor lamp is good for tasks or reading. Uplights are accent lights that can highlight artwork and collectibles.

4. What items are kept in this room? Let’s say you have one bathroom that’s shared by several family members, and you’re looking to remodel it. When you describe all the things that are stored in the space, the number of people who use it and so on, a designer will help you come up with the right storage solutions while keeping style in mind. For example, open shelving with baskets would give each family member his or her own basket, and would look great. Shallow wall built-ins, such as a medicine cabinet, would provide storage for shampoos, creams and toiletries.

A good designer can help solve storage issues but needs to know what issues should be addressed.

Here’s another example. If your counters are full of mail, keys, homework, magazines, electronic devices and so on, then maybe a main station is for you. A piece of furniture that has numerous compartments or drawers can help store those miscellaneous items.

If clutter collects in your family room, you might consider side tables with drawers or open side tables with a large basket or wooden crate for magazines, books and knitting supplies. Or maybe an ottoman that allows for storing items inside, such as blankets, pillows and things that are used sparingly.

Or maybe the solution is to add a functional piece of furniture storage in one room to help clear out space in another room, like a large armoire in your dining room that can store infrequently used dishware to free up space in your kitchen.

Think of how you do laundry. Do you need one hamper or four? Maybe you prefer to hang clothing rather than fold items after they come out of the dryer. Do you like to stand and fold clothes, or do you put them in a basket and fold them in another room? Do you need a place to iron or just the storage space to keep the iron and ironing board? Again, these are things that will help a designer quickly come up with the right design for you.

5. What look or feel do you want the space to have? Think of what you like in terms of colors, style and overall feel. If you’re looking for a calming environment in the bedroom, then maybe white walls, bedding and furniture are a good approach.

Ii’s recommended that clients create their own ideabook for each space and add comments on each photograph. Think about what it is in each photograph that inspires you, such as the color on the walls, the artwork, a piece of furniture or the overall feeling. Include information and pictures of appliances, plumbing fixtures, lighting fixtures, cabinet and door hardware, and flooring materials if these will be elements in your project.

Consider what speaks to you. Is there anything you personally cherish, example a colorful silk scarf that you love. This could set the tone for your family room. Paint the walls white to provide a neutral backdrop that allows you to add color throughout. Then add a tan sofa with colorful pillows and an accent piece of furniture painted a color taken from the vibrant scarf. A neutral rug can ground the space, and you can bring the scarf colors into other areas of your home through art and accessories, making it a cohesive home.

Don’t box yourself in with one design style, either. Be open to hearing a designer’s pitch on a combination of styles that might surprise you and also save time and money. For example, they might consider looking in other rooms of your home to swap out furnishings that will refresh and bring a new feeling to a room rather than buying all-new pieces. That old vintage chair in the basement could be just the piece you were searching for to break up a modern room.

6. What do you like about the space, and what do you most want to change and why? Not every room needs a total overhaul. In one room you may like a few things, such as the furniture and size of the room, but not the wall colors and rug. Sometimes just adding a few pillows and accessories is all a room needs.

You may like the overall feel of a space, but it may feel cramped with too much furniture. Designers can put together a floor plan for the best use of your space while considering focal points, large windows, art and so on. They know the space requirements for furniture and can map out the best traffic path.

A good designer will work with your list, making it a space that is right for your lifestyle while keeping the things you like and removing the things you don’t. Don’t be shy. Make clear what your likes and dislikes are. This is your space, after all.

7. How much money do you want to devote to your project? Setting budget expectations is important to the success of any remodeling or new construction project. Be realistic. A total average kitchen remodel can run as much as $80,000 and up. A basic kitchen remodel, keeping existing cabinets and floors, can cost about $16,000, depending on a variety of factors. If you’re on a strict budget, consider changes you need to have and which would be nice to have.

Share your budget right away with your designer, as this will set the tone of the makeover and will eliminate unnecessary backtracking later.

8. How much do you want to be involved in your project? Do you want a designer who will work with you, or do you want the designer to take charge and provide you with options? Clarifying your expectations will help you and the designer communicate well and ensure the result you want.

In the end, doing your homework will save you money that you can then put back into your project.

Regina Property Prices Stable Despite Number for Sale up 20%

Wed, 09 Aug by Pauline Relkey

Today’s Leader Post had an article about our latest real estate stats.

Our Association of Regina Realtors showed that at the end of July there were 1,512 residential properties for sale compared to 1,263 properties in July 2016. 30% of these listings are condos which is high.

Sask Trends Monitor says that this pattern of slightly fewer homes trading hands at slightly higher prices has been going on for several years now. We are at a maturing or leveling out of our housing market since the boom that happened in the mid-2000’s.

I personally have encountered quite a few price drops in the last 5 years so, as always, take this article, as the old saying goes, with a grain of salt.

For the full article, click here

House prices down in Canada

Tue, 18 Jul by Pauline Relkey

Take a look at what the Canadian Real Estate Association said about Canada’s housing situation.

CREA said home sales fell by 6.7 per cent last month compared to May — the sharpest monthly decline since 2010 and the third straight monthly contraction.

For the report, please click here.

Home Fixes Before Selling

Thu, 13 Jul by Pauline Relkey

Prioritize the projects that will bring the most value

Fix it to sell.

Structural is just as important as cosmetic.

Give the buyers what they want — create the “wow” factor.

The process of getting a property ready to put on the market can seem daunting enough. There is clearing the clutter, cleaning, organizing and scrutinizing your property with a fine-tooth comb. What needs attention and what can you leave alone?

Welcome to the new world of “fixing to sell.” Gone are the days of throwing it on the market and seeing what happens. Prepping for sale is a highly choreographed dance of repair along with a bit of renovation and presentation.

Pay attention to these 7 areas.

1.Structural and mechanical
It might not be glamorous, but buyers are looking at big-ticket items like the age and condition of the roof, air conditioning and heating systems, electrical panel and pipes.

You don’t have to replace all, but if any of these components are on their last leg, you might seriously need to consider replacing them as these items could factor into the kind of financing the buyer is able to obtain as well as insurability of the property.

Appraisers can be notorious for requiring a roof to be replaced, for example, as a condition of a loan. Replacing a roof that is at the end of its life before putting your home on the market will go a long way to solidifying buyer confidence in deciding to make an offer. The buyer (and you) won’t have to sweat what an inspector says, deal with a potential renegotiation before closing or face a price reduction. The last thing you want to be doing is putting on a new roof in the midst of trying to pack.

If you lack the budget to replace these items, get estimates on the cost involved to replace. You can always offer to contribute to the replacement cost in the form of a credit to the buyer’s closing costs.

2. Exterior

How does the exterior of your home look? Is there any wood rot? When was the last time it was painted? Are there any stucco cracks that need attention?

First impressions start from the outside, and the exterior will show up in photos across a multitude of websites, etc. This is definitely an area worth spending the money.

3. Landscaping

Speaking of the exterior, how does your landscaping look? Are the trees and shrubs overgrown, worn and wilted? What about the ground cover? Are the planting beds in need of some fresh mulch, pine straw, rock, etc.? Are there any overgrown tree limbs hanging over the house or blocking the home’s view? For a relatively inexpensive investment, you can transform how your exterior looks by trimming back and freshening things up with new plants and landscaping.

4. Cosmetic

Buyers buy with their eyes, so now is the time to go through the interior in detail. Are there dents and dings on the walls, scratched moldings or worn paint? Now is the time to spruce up the inside with a fresh coat of paint. Pick light, neutral and on-trend colors. Choose a neutral palette that will transition well with any buyer’s furniture. The latest trend is a combination of grey and beige.

Look at your light fixtures, ceiling fans and light switches — these are relatively inexpensive things to update and replace, yet they go a long way toward creating value. The front door? This is critical! Does it need a fresh coat of paint or new hardware? Consider adding a glass panel to create light that evokes a sunny and warm space.

5. Kitchen

This area is always huge with buyers. Even if the buyers barely know how to boil water, they always envision themselves in the kitchen cooking and entertaining or perhaps auditioning to be the next Food Network TV star surrounded by sleek appliances and cabinetry.
Here’s where you need to give them the look for less. Think new hardware on cabinets, adding or changing out a dated tile backsplash and updating appliances. Also, consider changing out counters — you might be able to find a reasonably price remnant of a granite slab.

6. Bathrooms

Simple and clean rules the day. Sprucing up your bathrooms to sell can be as simple as having the grout on the existing tile steam cleaned or regrouting where needed. Caulking, new plumbing and light fixtures along with mirrors can create value.

7. Flooring

What you walk on creates value. If you can only afford to make the investment in one significant part of your home, consider updating the flooring. There are a ton of low-cost options to choose from that include wood plank tiles and highly upgraded laminate flooring — think wide plank, light colored or hand-scraped styles. New flooring can totally transform the look of your space and give it the “wow” factor that buyers desire. New flooring can transform the look of your space and give it the ‘wow’ factor that buyers desire.

In undertaking for sale preparation, strike a delicate balance between what to fix and what to leave alone, but in the end, make the right improvements that will result in a faster sale for top dollar.

How to Use Prepayments to Be Mortgage Free, Faster

Wed, 14 Jun by Pauline Relkey

Using your mortgage prepayment options can drastically reduce the total amount you spend on your mortgage and shorten the time it takes to pay it down. If you follow these 3 steps, you can be mortgage free sooner than ever!

1. Know your prepayment privileges
Most mortgages have allowances for you to prepay down your mortgage faster. The standard prepayment amount allowed per payment can vary depending on your mortgage provider.

Your mortgage provider may be able to increase and decrease your prepayment privilege at any time throughout the life of your mortgage.

This means that if any life event occurs and you need to reduce your payment to the minimum, you might be able to. Most mortgage providers allow this free of charge, but with some providers you can only change your payments a set number of times throughout the year.

2. Increase your payments
Anytime you increase your payments, the excess that you pay per payment goes directly onto the principal portion of your mortgage. This is a great way to drastically reduce the interest you will have to pay over the term of your mortgage.

Typical prepayments allow you to add between 10% to 20% of your payment amount to each payment, depending on your lender. Some lenders also allow the use of “double up payments” which let you double each payment!

Here’s an example of prepayments being used on a typical mortgage:

All calculations are based off of a $400,000 mortgage with a 5 year term and 25 year amortization at a rate of 2.59% with monthly payments.

No Prepayments:
Monthly payments: $1,809.84
Principal paid over 5 year term: $60,836.51
Interest paid over 5 year term: $47,753.89
Mortgage amount remaining: $339,163.49
Years remaining on mortgage after 5 years: 20 Years

Adding a 15% Prepayment:
Monthly payments: $2,081.32
Principal paid over 5 year term: $78,201.00
Interest paid over 5 year term: $46,678.20
Mortgage amount remaining: $321,799.00
Years remaining on mortgage after 5 years: 15 years & 9 months

As you can see, the mortgage was reduced by $17,364.49 and you saved $1,075.69 in interest! The mortgage term was reduced by 9 years and 3 months in only 5 years!

3. Make a lump sum prepayment
Making a large payment can be a great option for paying down your mortgage, but may not be ideal for everyone. Lump sum payments help you reduce the amount of interest you will be required to pay on your mortgage. They can also be used to reduce your mortgage amount before selling your home and will reduce the penalty you will be required to pay.

Lump sum payments are usually between 10% – 25% of the mortgage total. Typically, you can make a lump sum payment onto your mortgage once a year. Every mortgage provider has their own specific guidelines for how you can make a lump sum payment in a calendar year. Your provider may require you put down a minimum amount for a lump sum prepayment, or you may only be eligible for one on the anniversary date of your mortgage.

If you decide that prepayments are for you, you can achieve mortgage freedom sooner than ever!

Contact me today if you are looking for a mortgage person and I will be happy to connect you with a couple of great people I have worked with.

The data included on this website is deemed to be reliable, but is not guaranteed to be accurate by the Association of Regina REALTORS® Inc.. The trademarks REALTOR®, REALTORS® and the REALTOR® logo are controlled by The Canadian Real Estate Association (CREA) and identify real estate professionals who are members of CREA. Used under license.