CMHC explores cutting red tape for self employed borrowers

October 2nd, 2017

Deal with the Saskatoon mortgage expertsMarcel Brossart and Chelsey Limay  you can rely on at Your Mortgage Link. You can sure that you have looked at all of the options, and that you have the best mortgage products and the best mortgage rates to suit your needs.

In a recent Mortgage Broker News  article, Joanne Smith reports that CMHC exploring cutting red tape for self employed borrowers

The national housing agency is exploring ways to make it easier for entrepreneurs and new immigrants to buy a home by cutting some of the red tape required to prove they can afford to pay the mortgage.

“Right now, under our mortgage insurance policies, you have to be able to document income to get mortgage insurance, to a level of specificity that discriminates against new Canadians, because they can’t do that,” Evan Siddall, the CEO of the Canada Mortgage and Housing Corp., said in a wide-ranging interview with The Canadian Press.

“It discriminates against entrepreneurs, as well, because they can’t prove their income as well, so we’re looking at our own policies to try and make sure that there is more equity in our mortgage insurance programs,” he said.

Anyone who wants to buy a home in Canada without a down payment of at least 20 per cent of the purchase price is usually required to get mortgage loan insurance from the CMHC, which requires a smaller down payment of five per cent on a home worth up to $500,000.

A 10-per-cent down payment is required for the portion of the price over $500,000, with $1 million being the maximum property value allowed.

The mortgage insurance comes with a premium, which the lender will then pass on to the person buying the home.

Borrowers need to satisfy lenders they will be able to make their mortgage payments, which usually means providing proof of employment and a few pay stubs. But that can be tricky for people who just started their own business.

It can also be a barrier to those whose employment history has gaps for other reasons, such as having recently immigrated to Canada.

People who are self-employed, for example, usually need to provide notices of assessment for the previous two years. Their income is determined by averaging those two years, although the most recent year can be used if it has increased annually for at least four years.

They also need to have been doing the same type of work for at least two years.

Dan Kelly, president of the Canadian Federation of Independent Business, said more flexibility would be welcome, especially for startups.

“If one starts a business or is self-employed, the lines between their personal and business finances are often quite blurry,” said Kelly.

“Often, their personal assets are required to get financing for the business. But then they also have a challenge getting financing on the personal side, because they don’t have the nice, clean letter of offer from an employer that is often quite convincing in these situations,” he said.

Any relaxation of the rules would naturally increase the risk. So Siddall said the agency is looking at how to manage that, including different ways to document income, and higher premiums.

“Can we charge for that risk? Better to charge that risk than not to make it available,” he said.

Jack Fiorillo, a broker with TMG The Mortgage Group in Woodbridge, Ont., said he expects the CMHC to be fairly conservative on this front.

“It will be a very small sandbox that CMHC will play in, probably at the beginning, and then maybe if once their risk appetite increases, maybe they can expand that box,” said Fiorillo.

He said he expects the potential change to make it easier for a relatively small number of self-employed people to get a mortgage, and they will likely have to pay higher interest rates.

The CMHC said it has been compiling data on how many would-be homeowners have their mortgage applications rejected for these reasons, but cannot disclose those numbers right now because it is based on conversations with commercial lenders.

“We are still doing research and development to move this forward,” CMHC spokesman Jonathan Rotondo said in an email.

Siddall said the Crown corporation has raised the idea with its board and expects to announce something within the next six months.

The Canadian Press


Saskatoon predicted to lead real estate growth in Western Canada

September 21st, 2017

Saskatoon predicted to lead real estate growth.

Deal with the Saskatoon mortgage expertsMarcel Brossart and Chelsey Limay  you can rely on at Your Mortgage Link.You can sure that you have looked at all of the options, and that you have the best mortgage products and the best mortgage rates to suit your needs.

In a recent Mortgage Broker News  article Steve Randall shared that Saskatoon predicted to lead real estate growth.he thought Saskatoon predicted to lead real estate growth in Western Canada

Enjoy our latest Saskatoon Mortgage article!

Real estate growth in Saskatoon is set to outpace other markets in Western Canada over the next five years.

That’s the finding of a study by the Real Estate Investment Network (REIN) which says that beginning 2018 the Saskatchewan capital will be a strong market as business growth and diversity, along with relatively affordable housing options, make the region attractive for businesses and families.

“The city’s economic diversity has helped to cushion the housing and commercial real estate markets from dramatic downturns witnessed in other Western Canadian cities,” the report states. A stabilization of oil prices and other exports have led to an improved labour market in the Saskatoon region in the past year.

The Real Estate Investment Network agrees. The organization describes itself as a real estate coaching company, which sells annual memberships to investors and entrepreneurs.

“But Saskatoon and Saskatchewan as a whole has food, fuel, fertilizer and farmers. Those four Fs definitely are going to be needed in the future,” he said during a telephone interview from Vancouver.said Don Campbell, who founded the group.

Campbell’s organization said Saskatoon is bucking the trend set by other Western Canadian cities with a lower-than-average GDP decrease of just one percent in 2016. This is one of the factors that led them to share that Saskatoon predicted to lead real estate growth.He said 60 percent of the provincial GDP is now produced in the services-producing sector, which is a shift from traditional areas of growth.

“If you are going to be buying and you are going to be parking some capital in there, now is the time to be patient and wait for the right property, rather than just go pick any property like you could five years ago,” Campbell said.

Saskatoon predicted to lead real estate growth.

This year, Saskatchewan saw nine percent growth in exports, which shows an increase in employment-based economic growth, his report said.

Officials at the Royal Bank of Canada predict Saskatchewan’s real GDP growth will be 1.8 percent in 2017 and 2.3 percent in 2018.

Your Mortgage Link is a Saskatoon-based brokerage operation. Chelsey Limay & Marcel Brossart the best Saskatoon mortgage team. Their goal is to offer their valued mortgage clients a range of mortgage products and to get the best Saskatoon mortgage rates possible from Canada’s top lenders.

Do you compare mortgage rates when it is time for renewal?

August 24th, 2017

Most homeowners don’t compare mortgage rates on renewal…Do you?

Deal with the Saskatoon mortgage experts, Marcel Brossart and Chelsey Limay  you can rely on  at Your Mortgage Link . You can sure that you have looked at all of the options, and that you have the best mortgage products and the best mortgage rates to suit your needs. We read recently to our surprise, that most home owners just sign on the dotted line when their mortgage renewal forms arrive, without shopping around to compare mortgage rates. Thats why we wanted to write about this subject  in our latest Saskatoon Mortgage article!

Most homeowners don’t compare mortgage rates on renewal…Do you?

Using websites to compare travel products has become widespread but the same does not appear to be true when it comes to financial products including mortgages.

Although 60% of those cold by Ipsos for said they do a lot of research when arranging a mortgage that fall sharply when it comes to renewals.

When renewing their home loan just 42% of homeowners do a lot of research and 22% renew without doing any research at all.
When arranging a new mortgage or renewing, baby boomers are least likely to do research on mortgage rates (27%) while 48% of millennials do so; Gen-Xers fall between the two groups.

The low rates of comparing deals is also seen across other financial products including credit cards and car insurance.
“The massive gulf between Canadians who compare travel options and financial products is disappointing. Because the latter is where you save real money,” says Justin Thouin, CEO

Consumers in Alberta are most likely to do a lot of research when shopping for financial products (45%) with those in Ontario just behind (41%) followed by Atlantic Canada (39%) Saskatchewan and Manitoba (38%), Québec (35%) and British Columbia (31%).

“A few months ago, we found that many Canadians don’t understand how common financial products work,” adds Thouin. “And this survey really hammers home that a large part of that is because Canadians can’t be bothered. We need to make comparing financial products as common as comparing flights or hotels.”


Your Mortgage Link is a Saskatoon-based brokerage operation. Chelsey Limay & Marcel Brossart the best Saskatoon mortgage team . Their goal is to offer their valued mortgage clients a range of mortgage products, and to get the best Saskatoon mortgage rates possible from Canada’s top lenders.


ORIGINAL Mortgage Broker News ARTICLE 

Bank Of Canada Mortgage Rate Prediction

August 3rd, 2017

Deal with the Saskatoon mortgage experts, Marcel Brossart and Chelsey Limay  you can rely on  at Your Mortgage Link . You can sure that you have looked at all of the options, and that you have the best mortgage products and the best mortgage rates to suit your needs. There are fears in the marketplace that the Bank Of Canada Mortgage Rate will continue to rise- this article discusses the arguments for and against.

Market watchers (and mortgage borrowers) are paying close attention to our economic data after the Bank of Canada (BoC) recently moved off the sidelines and raised its policy rate for the first time in more than seven years.

They are looking for signs that reinforce the view that the BoC will continue to raise rates – and suddenly every positive economic data point is being interpreted as further proof that more near-term rate hikes are inevitable.

However , that may not be the full story! This article by Dave Larock gives a different perspective to the current market conditions.

A Prediction About Bank Of Canada Mortgage Rates

1. The Latest Retail Sales Data (for May) Are Yesterday’s News

Last week’s retail sales report was interpreted as a bullish signal.              .

Canadian retail sales rose by 0.6% in May, well above the consensus forecast of 0.2% for the month. The rise was largely a result of higher sales at motor vehicle and parts dealers, and the dollar value of our total retail sales came in at $48.9 billion, which marked a record high.

The pundits came out in force to say that the latest retail sales data bolster the case for another BoC rate rise in October, and bluntly put, I found that strange.

From my desk, the May retail sales data validate the BoC’s decision to raise rates in July, but they don’t tell us anything about whether the Bank will do so again later this year.

To cite one obvious example of how our economic circumstances have changed since then, consider that the Loonie was trading at around 73 cents against the Greenback in May, giving our exporters a strong currency tailwind. Last Friday, the Loonie closed at 80 cents versus the Greenback, and May’s tailwind has quickly morphed into July’s headwind.

To put that change in perspective, economist David Rosenberg estimates that the Loonie’s 9.2% jump from its low on May 4 to its close at 80 cents last Friday has had the same economic impact as another 300 basis points (3%) of policy rate rises by the BoC. (Rosenberg used the BoC’s own Monetary Conditions Index measure to make this calculation.)

Bank Of Canada  does tend to overestimate the future strength of the Canadian economy when the Loonie is rising. If our economy subsequently underperforms, that underperformance will militate against further near-term policy-rate increases.

While it will take time for the impact of the Loonie’s recent surge to be fully understood, I think the economic data for July and the months that follow will provide much more reliable insight into the BoC’s future plans than the retail numbers for May.

2. The U.S. Federal Reserve Is Becoming More Cautious

The U.S. Federal Reserve meets this week, and while it was once expected to raise its policy rate at this upcoming meeting, the futures market now puts those odds at about 3%. (The futures market is now betting that the Fed won’t raise again until March, 2018.)

Federal Reserve Chair Janet Yellen sounded less convinced that today’s low levels of U.S. inflation will prove transitory when she recently testified before the U.S. Congress, and recent U.S. economic data cast doubt on the strength of current U.S. economic momentum overall.

If the Fed does sound less optimistic about the U.S. economy’s prospects this week, expect the Loonie to surge even higher against the Greenback as a policy-rate gap between the hawkish BoC and the dovish Fed suddenly appears. And if that happens, it will significantly decrease the odds of more BoC rate rises any time soon.

When the Fed started raising its policy rate last year, it gave the BoC some cover to do the same without upsetting the delicate exchange-rate balance between our two countries. But if the Fed adopts a more cautious tone, as I expect it will, financial markets will reprice the U.S. dollar lower and push the Loonie higher as a by-product.

While the BoC has the luxury of lagging the Fed when it increases rates, because doing so weakens the Loonie and helps our critically important exporters in the bargain, it has much less flexibility to delay its response to Fed policy-rate decreases or even to dovish shifts in the Fed’s policy-rate language.

Given that, if the Fed softens its tone this week, keep your eye on the Loonie. If it continues to move higher, Government of Canada (GoC) bond yields should move in the other direction as the odds of more BoC rate hikes diminish.

3. Our Inflation Rate Just Fell (Again)

We received the latest inflation data last week and it showed that our overall Consumer Price Index (CPI) fell to 1.0% in June. In addition, two of the Bank’s three measures of core inflation (CPI common and CPI median) were up 0.1% last month while the other, CPI Trim, remained flat.

The BoC has concluded that our current inflation softness is temporary, and as such, it has expressed a willingness to “look through” the current data. But for how long?

In its latest Monetary Policy Report (MPR) the Bank forecast that overall CPI will rise to 1.6% by the fourth quarter of this year (after revising its previous forecast down from 2.1%), so for anyone keeping score at home, overall CPI inflation will need to rise sharply over the remainder of 2017 for the BoC’s forecast to prove prescient.

In my view, it seems increasingly unlikely that overall inflation will spike from 1.0% to 1.6% at the same time that our economy is experiencing the disinflationary impacts of the soaring Loonie, and especially if average wage growth continues to sputter along. To that end, we’ll get a look at the next round of employment data soon, on August 4.


The Bottom Line: The BoC wants to raise interest rates and it has justified its decision to do so with a set of forecasts about how our economy will progress in future. Those forecasts are based in part on the assumption that the Loonie will trade at an average of 76 cents versus the Greenback (it’s at 80 cents today and climbing) and that inflation will move sharply higher in the months to come.

For the reasons outlined above, I think the accuracy of the BoC’s forecasts is far from certain. And if the BoC is wrong, its actions tomorrow will not match its words today. Food for thought as you scan today’s headlines and read warnings about sharply higher mortgage rates on the horizon.

Run some numbers through our online calculators, and look through the resources that we offer on our website .

No time for an appointment?  No problem! You can apply online with Your Mortgage Link!


How To Avoid The Common Mortgage Pitfalls

August 3rd, 2017
A home is the largest purchase most people will make in their lives.That should reinforce the importance of planning ahead, doing your research, relying on the advice of experts and not rushing through the process.With nearly 700,000 homes purchased in Canada each year, there’s no shortage of anecdotes about the issues and surprises that can arise.While a mortgage broker can help you avoid many of the pitfalls commonly encountered during the home buying process, it’s still important to be informed even before you start looking for that perfect home. Here are just a few examples:

1. Not checking your credit report before applying for a mortgage

Put simply, not knowing your credit score prior to applying for a mortgage is akin to not brushing your teeth before visiting the dentist.

Your credit score can have a huge impact on the best rate you’ll be able to secure. For example, some lenders will offer a borrower with a 640 credit score rates that are a full 0.25% worse than someone with a score of 750. For conventional mortgages (those with down payments of less than 20%), the ideal target score is around 720.

You don’t want to discover your credit score is sub-par in the middle of a mortgage application. Knowing this information beforehand gives you time to improve your score, or address any errors that may appear on your report. You can easily check your score through Equifax or TransUnion.

Anyone with a credit score less than 680 (the minimum credit score to get the best rates) should be prepared to pony up for a higher interest rate and will likely qualify for a smaller mortgage.

Announcement that PST will be Added on CMCH Payments as of Aug 1st 2017

June 16th, 2017

If you are thinking about buying a house don’t delay, as PST will be added on Default Mortgage Insurance Premiums from August 1st 2017!

PST will be added on CMCH
The recent announcement that PST will be added on CMHC premiums will affect all Saskatchewan home buyer effective August 1st 2017.
CMHC has recently advised us that there will be a 6% PST charge on all Mortgage Default insurance premiums (CMHC/GE/Canada Guaranty) as of August 1/2017. The Saskatchewan provincial sales tax is to apply to mortgage loan insurance premiums and surcharges
the insurers will be required to collect 6% provincial sales tax (PST) on premiums and surcharges for full or partial loan advances made on or after August 1, 2017.
The Saskatchewan PST will be payable on premiums paid for all mortgage loan insurance transactions. The provincial sales tax cannot be added to the loan amount.  It will be due & payable at the lawyers office.
What does this mean for YOUR Mortgage?
If your possession date is on or after August 1/2017 there will be a 6% PST charge on your Default Mortgage Insurance premium

An example of how PST will be added on Default Mortgage Insurance Premiums

Purchase $450,000.00
Minimum 5% downpayment $22,500.00
+Insurance premium $17,100.00 (4% surcharge/minimum 5% down)
=Total mortgage $444,600.00
*TOTAL PST required at lawyers office payable=$1026.00 (6% of the Insurance premium)
This PST cannot be financed as part of the mortgage and is only applicable on insured mortgages (CMHC/GE/Canada Guaranty)
Looking to purchase a home soon? Having the mortgage approval in place and taking possession before AUGUST 1/2017 will save you this additional PST cost.

Your Mortgage Link is a Saskatoon-based brokerage operation. Chelsey Limay & Marcel Brossart the best Saskatoon mortgage team . Their goal is to offer their valued mortgage clients a range of mortgage products, and to get the best Saskatoon mortgage rates possible from Canada’s top lenders.

Why There Has Been A Drop In CMHC insurance

June 1st, 2017


Globe And Mail reports Efforts to cool housing market sparked drop in CMHC insurance 

New mortgage insurance rules introduced by the federal government last fall to cool the housing market have led to a sharp drop in insurance volumes for Canada Mortgage and Housing Corp. as fewer home buyers qualify for mortgage insurance.

CMHC said total insured volumes fell 41 per cent in the first quarter of 2017, including a 23-per-cent drop in homeowner insurance volumes and an 87-per-cent decline in the volume of portfolio insurance, which is bulk insurance purchased by financial institutions for their portfolios of uninsured mortgages.

Dramatic drop in CMHC insurance

drop in CMHC insurance The numbers unveiled on Tuesday offer a window into the impact of the government’s new rules, suggesting they have led to a significant decline in the number of people qualifying for insured mortgages under the tougher standards. Among the changes announced in October, the federal government increased “stress testing” standards for people taking out fixed-rate loans of five years or more to ensure they could still afford their mortgages at higher interest rates than they are currently paying.

CMHC said it insured 48,746 housing units in the first quarter, down 41 per cent from 82,834 units in the same period last year. Homeowners insured 18,624 units with CMHC in the quarter, a 23-per-cent drop from 24,162 units last year, while institutions bought portfolio insurance for just 4,662 units, down 87 per cent from 36,690 units last year, after CMHC hiked premiums on that insurance category.

The declines were somewhat offset by increases in insurance volumes for multiunit residential buildings, such as apartment buildings, where the number of units insured rose by 16 per cent to 25,460 from 21,982 last year.

The total value of new loans insured in the first quarter dropped 42 per cent to $8.3-billion from $14.3-billion last year, CMHC said. The Crown corporation’s total portfolio of insurance-in-force stood at $502-billion as of March 31, down 2 per cent from $512-billion at the end of December, 2016.

Portfolio insurance for financial institutions, which took the biggest hit in the first quarter, was affected by new federal rules last fall that restricted the types of mortgages eligible to be insured. Lenders can no longer insure mortgages on homes with a purchase price of more than $1-million, for example, and cannot insure mortgages on homes that are purchased for rental or as investments.

Steven Mennill, CMHC’s senior vice-president of insurance, said most of the drop in demand for portfolio insurance in the first quarter was the result of a premium hike CMHC introduced on Jan. 1 because of new capital requirements for mortgage insurers that were introduced by Canada’s financial regulator.

Mr. Mennill said CMHC doesn’t know yet whether the drop in portfolio insurance signals a permanent shift in its business model or whether demand for the insurance product will swing back again.

“It’s not clear at this point whether either of these changes will be sustained over the long term,” he said. “Portfolio insurance [demand] is largely a function of the overall sources of capital and liquidity and funding available to lenders in the system, which is affected by a wide range of factors. The cost of portfolio insurance is just one of them.”

The declining insurance volumes led to an 8.1-per-cent drop in premiums and fees earned by CMHC on new mortgage insurance written in the first quarter, but the agency posted a 2.4-per-cent increase in premiums and fees earned on its entire insurance portfolio.

CMHC reported that its total revenue soared in the first quarter to $2.25-billion from $1.2-billion last year, while profit climbed to $370-million from $313-million.

Most of the increase in revenue is a result of the federal government’s rapid expansion to assisted housing programs under the National Housing Strategy, which is aimed at expanding affordable and assisted housing programs in communities across the country. The Trudeau government announced new federal investments of $11.2-billion over 11 years in its 2017 budget on top of other spending under the strategy.

CMHC is delivering much of the spending under the program, but the money is passing through the agency and is not revenue it is earning from business activity. CMHC chief financial officer Wojo Zielonka said the organization still anticipates that mortgage insurance will account for a majority of its business going forward.

CMHC has historically kept all the income it has earned as capital for its operations, but will start paying a dividend this year, reporting Tuesday that it will transfer $145-million to the federal government. Mr. Zielonka said CMHC also expects to declare a further one-time special dividend this year of excess capital.

Your Mortgage Link is a Saskatoon-based brokerage operation. Chelsey Limay & Marcel Brossart the best Saskatoon mortgage team . Their goal is to offer their valued mortgage clients a range of mortgage products, and to get the best Saskatoon mortgage rates possible from Canada’s top lenders.

How the US Economy effects Saskatoon mortgage rates and our finances.

April 6th, 2017

Your Mortgage Link is a Saskatoon-based brokerage operation. Chelsey Limay & Marcel Brossart the best Saskatoon mortgage team . Their goal is to offer their valued mortgage clients a range of mortgage products, and to get the best Saskatoon mortgage rates possible from Canada’s top lenders.

With a passion for real estate, Marcel enrolled through UBC in 2002 and became a residential appraiser with Dream Home Appraisals. One year later, Home Loans Canada (Division of CIBC) recruited Marcel to become a mortgage professional. Buoyed by a relentless entrepreneurial spirit, Marcel founded Your Mortgage Link Inc. in May 2006. Today, he remains YML’s majority owner and President. Marcel is highly involved in YML’s day-to-day operations, including the hiring and training of new brokers. He also works extensively with both commercial and residential clients.

License No.: 316194

Office: (306) 244-4663 | Tollfree: (866) 627-7716 | Cell: (306) 220-0309 |

How the US Economy effects Saskatoon Mortgage rates

As Pierre Trudeau once said about living so close to the United States “Living next to you is in some ways like sleeping with an elephant. No matter how friendly or even tempered is the beast, one is affected by every twitch and grunt”. That statement, said almost 40 years ago, still holds very true today.

Our economies are even more intertwined now and it’s no wonder many Canadians are paying close attention to policymakers and politicians south of the boarder, particularly the U.S. Federal Reserve.

Recently the U.S. Federal Reserve recently raised interest rates by 1/4 of 1% , the second time in 3 months. It has also stuck to its outlook for two more interest rate increases in 2017 while remaining cautious before implementing any further increases. “We have seen the economy progress over the last several months in exactly the way it was anticipated and we have some confidence in the path the economy is on” Fed Chair Janet Yellen said at a recent press conference. Employment numbers in the U.S. continue to look impressive and economic activity is expanding which helps keep the bond market relatively calm with no immediate increases in yields.

What does this mean for Saskatoon mortgage rates?

Saskatoon mortgage ratesFor the time being this is good news for Canadians. The lack of bond yield increase in the U.S. has resulted in the Canadian bond prices to remain unchanged as well. If you are looking to get a 5 year mortgage, this means that you shouldn’t see any increases in rates as typically fixed term mortgages are tied to the yields (returns) on Canadian bond prices. Also, no significant changes are expected for variable rate mortgages as it appears the statements made by the U.S Federal Reserve will push the Bank of Canada’s decision to increase our Bank of Canada benchmark rate a little further into the future.


As your Saskatoon mortgage professionals, it’s our responsibility to look at what’s happening in the Canadian mortgage landscape, Saskatoon mortgage rates and what’s happening in the USA,  so we can see how it affects you and your mortgage in Saskatoon.

The types of mortgage products we offer include:

  • Self Employed Programs
  • First Time Home Buyers MortgagePlan
  • Cash Back Mortgages
  • Secured Line of Credit
  • New Construction Mortgages
  • Rental Properties Mortgages
  • Government Grant Programs
  • New to Canada / Immigrant MortgagePrograms
  • Commercial Properties

Contact us today to arrange an appointment with a YML Mortgage Specialist.  We look forward to working with you to achieve your goals.

Chelsey Limay & Marcel Brossart are Your Mortgage link

Current Interest Rates
5 Year Variable2.90%
1 Year Fixed3.19%
2 Year Fixed3.19%
3 Year Fixed3.29%
4 Year Fixed3.64%
5 Year Fixed (High Ratio Purchases/Transfers)3.49%
5 year Fixed (Uninsurable)3.64%
7 Year Fixed3.59%
10 Year Fixed3.94%
Home Equity
Line of Credit

Rates are subject to change without notice. For the most current rates, call (306) 244-4663.