1 May

The Hidden Advantages of Mortgage Pre-Approval Most Home Buyers Miss

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Posted by: Avaljit Sandhu

🏡 The Hidden Advantages of Mortgage Pre-Approval Most Home Buyers Miss

By Avaljit Sandhu – Mortgage Professional, Dominion Lending Centres

Mortgage Pre-Approval Is More Than Just a Budget Tool

When most people think of mortgage pre-approval, they assume it’s just about knowing how much they can afford. While that’s true, pre-approval offers several hidden benefits that can give you an edge in Manitoba’s competitive real estate market.

Let’s uncover those lesser-known advantages and how they can help you buy with confidence.

Why Pre-Approval Matters in Today’s Market

In a province like Manitoba, where home prices are stable but rising, being financially prepared is critical. With more buyers entering the market, sellers are looking for buyers who are ready to act fast.

A mortgage pre-approval sends a strong message:

✅ “I’ve done my homework. I’m ready to buy.”

The Overlooked Benefits of Pre-Approval

1. Confidence in Negotiations

When you know your financing is likely to be approved, you walk into negotiations with stronger confidence. You know your limits and can negotiate firmly.

2. Better Relationship with Your Realtor

Agents love working with pre-approved clients. It helps them focus on homes you can realistically afford and speeds up the search process.

3. Protects You from Rate Increases

If rates are expected to rise, a pre-approval with a 120-day rate hold can save you thousands over your mortgage term.

4. Allows You to Spot Weak Points in Your Application

Sometimes clients don’t realize they have issues like inconsistent income, outdated credit reports, or unverifiable funds. Pre-approval helps you fix these early.

The Pre-Approval Process – What to Expect

Working with a mortgage broker in Winnipeg makes the pre-approval process smooth and stress-free.

Here’s a simple breakdown:

Step 1: We Review Your Income and Credit

This includes:

  • Job letter

  • Paystubs

  • T4s and Notices of Assessment

  • Credit check (soft pull through a broker)

Step 2: Review Your Down Payment

We ensure your bank statements are acceptable and verify the source of your funds.

Step 3: Rate Lock and Guidance

You get a rate hold and advice on next steps, so you can begin your home search with a clear strategy.

What If You’re New to Canada?

If you’re on a work permit or a new permanent resident, pre-approval also shows lenders how you’re establishing financial stability. You may be asked to show:

  • Alt credit (like rent, car insurance, or phone bills)

  • Bank statements

  • Status documents

Pre-approval helps newcomers prove they’re mortgage-ready.

Final Thought: Don’t Shop Without It

Buying a home without pre-approval is like bidding at an auction with an empty wallet. Even if you’re early in your journey, pre-approval is risk-free, free of charge, and gives you a head start.

FAQ – Pre-Approval Questions Answered

Q1: What if I change jobs after getting pre-approved?
This could affect your application. Always consult your mortgage broker before making major changes.

Q2: Can I get pre-approved with student loan debt or credit cards?
Yes. We factor in your debts to calculate what you can afford.

Q3: Can I get pre-approved if I’m self-employed?
Absolutely. You’ll need two years of tax returns and possibly business financials.

Q4: How long does a pre-approval last?
Typically 90–120 days.

Q5: Is there a cost to get pre-approved?
No. As a licensed broker, I provide this service free of charge for home buyers.

✅ Need Help Getting Pre-Approved?

Let’s talk! I can walk you through the process, answer questions, and help you feel confident about buying in Manitoba’s housing market.

24 Apr

The Benefits of Pre-Approval in Manitoba’s Housing Market

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Posted by: Avaljit Sandhu

The Benefits of Pre-Approval in Manitoba’s Housing Market

By Avaljit Sandhu, Dominion Lending Centres

Buying a home is one of the biggest financial decisions you’ll make, and preparation is key—especially in Manitoba’s competitive housing market. One essential step before you start house hunting is getting a mortgage pre-approval. This simple process offers clarity, confidence, and a stronger position when making an offer.

Let’s explore why pre-approval is a must for Manitoba homebuyers.

1. What is Mortgage Pre-Approval?

Mortgage pre-approval is a process where a lender reviews your finances to determine how much you may qualify to borrow for a mortgage. Once pre-approved, you receive a conditional commitment that outlines:

  • The maximum mortgage amount you’re eligible for

  • The estimated interest rate

  • The term and type of mortgage

  • How long the rate hold is valid (usually 90 to 120 days)

2. Why is Pre-Approval Important in Manitoba?

2.1 You Know Your Budget

The housing market in Manitoba, especially in cities like Winnipeg, can move fast. Getting pre-approved helps you:

  • Shop within your price range

  • Avoid falling in love with homes outside your budget

  • Understand your monthly payments in advance

2.2 You Can Act Fast in a Competitive Market

In a hot market, pre-approved buyers are taken more seriously. Sellers are more likely to accept an offer from someone who’s already spoken to a lender. It shows you’re a serious, qualified buyer—ready to move forward.

2.3 You Lock in a Rate

Pre-approvals typically come with a rate hold, which can protect you from rising interest rates while you shop. If rates go up during your house hunt, you still get the lower rate. If rates drop, you may be able to requalify at the better rate.

3. What Do Lenders Review for Pre-Approval?

To get pre-approved, lenders will ask for documents that show your financial picture. This usually includes:

  • Letter of employment and recent paystubs

  • T4s and Notices of Assessment from the past 2 years

  • Credit history and score

  • Down payment source (with 90-day history on bank statements)

  • Your status in Canada (e.g., citizen, PR, work permit)

If you’re on a work permit or a newcomer to Canada, additional documents may be required such as proof of residency, alternative credit history, or extended bank history.

4. Pre-Approval vs. Pre-Qualification

It’s easy to confuse the two, but they are not the same.

 

Feature Pre-Qualification Pre-Approval
Based on estimated income? Yes No
Credit check required? No Yes
Reliable for house hunting? No Yes
Rate hold included? No Usually yes

Pre-approval is the one that carries real weight when shopping for a home.

5. How to Get Pre-Approved in Manitoba

Step-by-Step Guide:

  1. Speak with a Mortgage Agent – Someone like myself can walk you through the process and explore your options.

  2. Submit Documents – Income verification, down payment details, and credit history.

  3. Wait for Review – Your application is assessed by a lender.

  4. Get Your Pre-Approval Letter – This shows how much you’re qualified to borrow and includes your rate hold.

Frequently Asked Questions (FAQ)

1. Does pre-approval guarantee I’ll get the mortgage?

No, it’s a conditional approval. Final approval depends on the property you choose and any changes in your financial situation.

2. How long does mortgage pre-approval last?

Typically, pre-approvals are valid for 90 to 120 days, depending on the lender.

3. Can I get pre-approved if I’m self-employed?

Yes, but you may need to provide extra documentation such as 2 years of tax returns, Notice of Assessments, and business financials.

4. Does pre-approval hurt my credit score?

It results in a soft inquiry or one hard pull, which usually has a minimal impact. It’s a standard part of the process.

5. Can I still be pre-approved if I’m new to Canada?

Yes, lenders have special programs for newcomers, including those on work permits or with limited credit history. Alternative documentation may be required.

Conclusion

Getting pre-approved is more than just paperwork—it’s peace of mind. Whether you’re a first-time home buyer in Winnipeg or moving to a new neighborhood in rural Manitoba, pre-approval gives you the power to house hunt with confidence. It saves you time, avoids surprises, and gives you a competitive edge.

Ready to get pre-approved?
Let’s chat—I’ll walk you through it and help you prepare for homeownership.

20 Apr

First-Time Homebuyer Mistakes to Avoid in 2025

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Posted by: Avaljit Sandhu

Sure! Here’s a fully structured SEO-optimized blog post titled “First-Time Homebuyer Mistakes to Avoid in 2025” by Avaljit Sandhu from Dominion Lending Centres – Mainstream Mortgages. It uses proper heading tags (H1 through H6) and includes natural keywords for strong LinkedIn and SEO impact.

First-Time Homebuyer Mistakes to Avoid in 2025

By Avaljit Sandhu, Dominion Lending Centres – Mainstream Mortgages

Buying your first home is exciting—but it can also be overwhelming if you’re not properly prepared. First-time homebuyers often make avoidable mistakes that can cost them money, time, and peace of mind. In this article, we’ll explore the most common first-time homebuyer mistakes in 2025 and how you can steer clear of them.

🏡 Why First-Time Homebuyers Struggle

Lack of Preparation

Many first-time buyers jump into the housing market without doing their homework. Understanding the mortgage process, market conditions, and what you can realistically afford is essential before making any offers.

Overestimating Budgets

It’s easy to get emotionally attached to a beautiful home, but buying beyond your means can lead to financial stress. Always calculate what you can afford—not what you want to afford.

Not Getting Pre-Approved

Skipping mortgage pre-approval is one of the most common and costly mistakes. Pre-approval gives you a clear budget, shows sellers you’re serious, and speeds up the purchase process.

📊 Top Mistakes to Watch Out For

Skipping Mortgage Pre-Approval

Getting pre-approved is crucial. It gives you a realistic price range and increases your bargaining power with sellers.

Ignoring Additional Costs

Many first-time buyers forget to account for closing costs, legal fees, home insurance, property taxes, and maintenance. These can add up fast and should be included in your budget.

Not Understanding Mortgage Terms

Not all mortgages are created equal. Fixed vs. variable rates, amortization periods, and prepayment privileges can greatly affect your long-term finances.

Buying Based on Emotion, Not Budget

It’s important to love your new home—but don’t let emotion overrule financial logic. Stick to your budget to avoid buyer’s remorse.

Not Working With a Mortgage Professional

Navigating the mortgage world alone can be tough. A mortgage expert ensures you get the best terms, avoid penalties, and fully understand your commitment.

👨‍💼 How a Mortgage Agent Can Help

Access to Multiple Lenders

Unlike banks, mortgage agents work with various lenders—giving you more options and better chances at a lower rate.

Better Interest Rates

Agents often have access to exclusive deals not available to the public or major banks.

Help Understanding Complex Documents

Buying a home involves a lot of paperwork. A mortgage agent walks you through everything so you don’t miss a critical detail.

📣 Why Choose Avaljit Sandhu, DLC – Mainstream Mortgages

Personalized Service

Every client’s situation is unique. Avaljit works closely with you to understand your needs and create a tailored mortgage plan.

Local Winnipeg Expertise

With deep knowledge of the Winnipeg housing market, Avaljit can help you make informed choices that match your goals.

Support for Newcomers and Work Permit Holders

Navigating Canadian mortgage rules can be challenging for new immigrants or temporary workers. Avaljit specializes in guiding you through the process with care.

💬 FAQ – First-Time Homebuyer Questions

Q1: What’s the biggest mistake first-time buyers make?

A: Not getting pre-approved or not budgeting properly. It’s important to know what you can afford and what additional costs may arise.

Q2: How can I find out how much I can afford?

A: Book a free consultation with Avaljit Sandhu. We’ll assess your income, credit, and goals to help you determine your homebuying budget.

Let’s Get You Home

If you’re buying your first home in 2025, avoid costly mistakes by working with a professional. Contact Avaljit Sandhu at Dominion Lending Centres – Mainstream Mortgages for a free consultation and get the right mortgage guidance from day one.

15 Apr

Consolidating Debt in Retirement with the CHIP Reverse Mortgage

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Posted by: Avaljit Sandhu

Consolidating Debt in Retirement with the CHIP Reverse Mortgage

By Avaljit Sandhu | Dominion Lending Centres – Mainstream Mortgages

Managing Debt in Retirement Can Be Overwhelming

Debt is stressful at any age, but in retirement—when income is fixed or limited—it can become a serious burden. Many retirees look to consolidate debt to simplify payments and reduce interest costs. However, traditional debt solutions often come with limitations that make them hard to access in later years.

Why Traditional Debt Consolidation May Not Work for Retirees

Consolidation strategies like personal loans, HELOCs (Home Equity Lines of Credit), or mortgage refinancing typically require:

  • Strong credit scores

  • Proven, consistent income

  • Ability to make monthly payments

These requirements can be tough to meet if you’re retired and living on a fixed income.

The CHIP Reverse Mortgage: A Flexible Debt Solution for Canadians 55+

If you’re 55 or older and a homeowner, the CHIP Reverse Mortgage from HomeEquity Bank offers a unique opportunity to access your home equity to consolidate debt—without monthly mortgage payments.

Key Benefits of the CHIP Reverse Mortgage

✅ No Monthly Payments

With the CHIP Reverse Mortgage, repayment is only required when you sell your home, move out, or pass away.

✅ Easy to Qualify

Approval is based on your home equity, not income or credit. If you and your spouse are both over 55, you can qualify—even if your credit is limited.

✅ Tax-Free Cash

Withdraw up to 55% of your home’s appraised value tax-free, without affecting benefits like OAS or GIS.

✅ Flexible Payout Options

Receive the funds as a lump sum or in installments, depending on your financial needs.

✅ Built-In Protection

The CHIP Reverse Mortgage comes with a No Negative Equity Guarantee—you or your estate will never owe more than the home’s fair market value when the loan is due.*

Comparing Debt Consolidation Options in Retirement

Option Pros Cons
CHIP Reverse Mortgage No monthly payments, easy approval, tax-free funds Home equity is used
Refinancing / HELOC Access equity at low interest Requires income and strong credit
Personal Loan Quick access to cash High interest rates for poor credit
RRSP Withdrawals Immediate funds Triggers taxes and reduces future retirement income
Balance Transfer Cards Temporary interest relief Requires income to make payments

Take Control of Your Retirement Finances

Don’t let debt define your golden years. The CHIP Reverse Mortgage gives you the freedom to stay in your home, consolidate your debt, and reduce financial stress—all without ongoing loan payments.

Ready to explore if this solution is right for you?

Contact Avaljit Sandhu – Your CHIP Reverse Mortgage Specialist

As a licensed mortgage agent with Dominion Lending Centres – Mainstream Mortgages, I specialize in helping retirees and near-retirees find smart solutions for their financial goals. Let’s discuss how the CHIP Reverse Mortgage can help consolidate your debt and bring peace of mind in retirement.

📞 Call Now
📧 Email Avaljit Sandhu
🌐 Visit My Website

FAQ – CHIP Reverse Mortgage & Retirement Debt Consolidation

What is the CHIP Reverse Mortgage?

The CHIP Reverse Mortgage is a loan for homeowners aged 55+ that lets you access a portion of your home equity tax-free, with no monthly payments. Repayment occurs only when you move, sell, or pass away.

Can I consolidate credit card or personal loan debt with CHIP?

Yes, many Canadians use CHIP to pay off high-interest debts like credit cards or unsecured personal loans.

Will this affect my pension or government benefits?

No. Because CHIP funds are tax-free, they do not affect benefits like OAS or GIS.

What happens if the value of my home drops?

With the No Negative Equity Guarantee, you or your heirs will never owe more than the fair market value of your home at the time of repayment.*

FAQ – About Avaljit Sandhu & Dominion Lending Centres

Who is Avaljit Sandhu?

I am a mortgage agent based in Winnipeg, Manitoba, with Dominion Lending Centres – Mainstream Mortgages. I help first-time buyers, new immigrants, and retirees navigate mortgage financing.

What services does Dominion Lending Centres offer?

DLC provides access to a wide range of mortgage products, including CHIP Reverse Mortgages, purchase financing, refinances, and renewals through Canada’s top lenders.

Is there a cost to work with you?

There is no cost to most clients, as I am paid by the lender after your mortgage closes. I am committed to helping you find the best solution at no additional expense.

Final Thoughts

The CHIP Reverse Mortgage is an excellent tool for Canadians 55+ who want to simplify retirement, reduce stress, and take control of their debt. If you’re interested in learning more, reach out today—I’m here to help.

12 Mar

Canadian Job Growth Stalls in February

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Posted by: Avaljit Sandhu

Overview of Canada’s February Job Report

Canada’s job market showed minimal growth in February, with only 1,100 new jobs added. This stagnation follows three months of strong employment gains. The employment rate remained at 61.1%, while the unemployment rate held steady at 6.6%. Harsh winter storms contributed to job losses, impacting work hours significantly.

Employment Trends and Sectoral Shifts

Minimal Employment Growth and Stability in Sectors

  • Private and public sector employment showed little change in February.
  • Total hours worked dropped by 1.3%, the most significant decline since April 2022.

Job Gains in Retail and Finance, Declines in Other Industries

  • Wholesale and retail trade employment rose by 51,000 (+1.7%).
  • Finance, insurance, and real estate saw a 16,000-job increase (+1.1%).
  • Employment declined in professional services (-33,000) and transportation (-23,000).

Wage Growth and Inflationary Pressures

  • Average hourly wages increased by 3.8% year-over-year, reaching $36.14.
  • Inflation concerns persist, affecting consumer spending and business hiring.

Economic Impacts and BoC Policy Expectations

  • Economic uncertainty remains due to U.S. trade policies and slowing job creation.
  • Bank of Canada is expected to cut interest rates on March 12, with an 85% probability of a 25-basis-point reduction.

Market Reactions and Economic Outlook

  • The Canadian dollar weakened briefly following the job report release.
  • Canada’s two-year bond yield dropped to 2.60%, reflecting economic concerns.

How This Affects Homebuyers and Mortgage Seekers

  • Lower interest rates could make borrowing more affordable for homebuyers.
  • Mortgage approvals may become more accessible with stable employment trends.

Avaljit Sandhu and Dominion Lending Centres – Expert Mortgage Advice

  • At Dominion Lending Centres, Avaljit Sandhu helps clients navigate mortgage options in changing economic conditions.
  • Personalized mortgage solutions are available to fit your financial situation.

FAQ Section

What does weak job growth mean for the Bank of Canada?

A slowdown in job creation increases the likelihood of interest rate cuts to stimulate economic activity.

How will lower interest rates affect the housing market?

Lower interest rates typically make mortgages more affordable, potentially increasing housing demand.

What industries were most affected by the February job report?

Retail and finance saw job gains, while professional services and transportation experienced declines.

How can Dominion Lending Centres help in this economic climate?

We offer expert mortgage advice to help clients secure the best financing options in a fluctuating economy.

How can I contact Avaljit Sandhu for mortgage advice?

You can reach out through Dominion Lending Centres for personalized mortgage assistance.

Avaljit Sandhu,Winnipeg | Mortgage Professional | Dominion Lending Centres Mainstream Mortgages

For more insights on Canadian job trends and mortgage opportunities, stay connected with Avaljit Sandhu at Dominion Lending Centres.

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25 Feb

What is Mortgage Refinancing?

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Posted by: Avaljit Sandhu

When Does Refinancing Make Sense?

Mortgage refinancing is the process of replacing your existing mortgage with a new one, often with different terms and interest rates. Homeowners refinance for various reasons, such as lowering their interest rate, reducing monthly payments, consolidating debt, or accessing home equity.

Refinancing makes sense if:

  • You can secure a lower interest rate, reducing overall interest costs.
  • You need to consolidate high-interest debts into a lower mortgage rate.
  • Your home’s value has increased, allowing you to access home equity.
  • You want to switch from a variable to a fixed-rate mortgage for stability.
  • You wish to change your mortgage term to suit your financial goals.

Costs & Considerations

While refinancing can be beneficial, it comes with costs and considerations:

  • Prepayment Penalties – Some lenders charge penalties for breaking an existing mortgage early.
  • Legal Fees – A lawyer is needed to finalize the new mortgage.
  • Appraisal Fees – Lenders may require a home appraisal to determine its current market value.
  • New Mortgage Terms – Ensure the new mortgage aligns with your long-term financial plans.

Difference Between Renewal & Refinance

  • Renewal happens at the end of your mortgage term, allowing you to negotiate a new rate with the same lender or switch lenders without breaking your mortgage.
  • Refinancing involves replacing your current mortgage before its term ends, often requiring additional costs but providing financial benefits like lower interest rates or debt consolidation.

Process & Timeline

  1. Assess Your Financial Goals – Determine why you want to refinance.
  2. Check Your Credit Score – A good credit score improves your chances of securing a better rate.
  3. Evaluate Your Home Equity – Lenders may allow you to borrow up to 80% of your home’s value.
  4. Compare Lenders & Mortgage Rates – Look at options from different financial institutions.
  5. Apply for a New Mortgage – Submit your financial documents, such as income proof and bank statements.
  6. Approval & Appraisal – The lender assesses your eligibility and may require a property appraisal.
  7. Closing the Loan – Once approved, your lawyer finalizes the new mortgage agreement.

Is Refinancing Right for You?

Refinancing is ideal if it aligns with your financial needs and goals. If you need lower payments, better interest rates, or debt consolidation, refinancing may be the right choice. However, consider all costs before proceeding.

How Refinance Mortgage Works

When you refinance, the new lender pays off your old mortgage, and you start a new loan agreement. Your monthly payments, interest rate, and loan term change based on the new mortgage terms.

When to Refinance Mortgage

  • When interest rates drop significantly.
  • When your credit score improves.
  • When your home equity has increased.
  • When you need to consolidate debt.
  • When you want to switch from a variable to a fixed rate.

Refinance When Home Value Increases

If your home’s value has risen, you may qualify for a larger loan, allowing you to access equity for renovations, investments, or other financial needs.

Why Refinance Your Mortgage

Refinancing allows you to:

  • Reduce your interest rate and monthly payments.
  • Consolidate debt into a single, lower-interest loan.
  • Access home equity for investments, renovations, or other expenses.
  • Adjust your mortgage term to match your financial goals.

FAQ: Mortgage Refinancing

Q: How long does the refinancing process take? A: Typically, 2 to 4 weeks, depending on the lender and required documentation.

Q: Can I refinance with bad credit? A: Yes, but your interest rate may be higher. Improving your credit score can help secure better rates.

Q: What documents are needed for refinancing? A: Proof of income, bank statements, property details, and a credit check.

Q: How much equity do I need to refinance? A: Most lenders require at least 20% equity in your home.

FAQ: Avaljit Sandhu – Dominion Lending Centres Mainstream Mortgages

Q: Who is Avaljit Sandhu? A: Avaljit Sandhu is a mortgage professional at Dominion Lending Centres Mainstream Mortgages, helping clients secure mortgage financing in Winnipeg, Manitoba.

Q: What services does Avaljit Sandhu offer? A: Mortgage refinancing, first-time homebuyer mortgages, debt consolidation, and home equity loans.

Q: How can I contact Avaljit Sandhu? A: You can reach out through Dominion Lending Centres Mainstream Mortgages for expert mortgage advice and refinancing assistance.

If you’re considering mortgage refinancing, contact Avaljit Sandhu at Dominion Lending Centres Mainstream Mortgages to explore your options and make the right financial decision.

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14 Feb

Mortgage Rate Trends in Canada for 2025: Predictions, Housing Market, and What Borrowers Should Expect

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Posted by: Avaljit Sandhu

Mortgage Rate Trends in Canada for 2025: Predictions, Housing Market, and What Borrowers Should Expect

Bank of Canada Rate Cuts & Predictions

The Bank of Canada (BoC) has started cutting rates in 2024 after reaching a 23-year high of 5.0%. By January 29, 2025, the BoC made another cut of 0.25%, bringing the policy rate down to 3.0%. This has led to most bank prime rates dropping from 5.45% to 5.20%.

Experts predict further rate cuts in 2025, but how quickly and how much depends on inflation, job growth, and potential economic disruptions, particularly from the U.S..

Impact of U.S. Tariffs on Canadian Mortgage Rates

A major concern for Canadian interest rates is the looming 25% tariffs on Canadian goods that the U.S. government has threatened to impose. If these tariffs become reality, it could cause “cost-push inflation,” which means businesses would raise prices due to higher import costs.

To counteract the economic damage from tariffs, the BoC may need to cut rates aggressively (up to 1.25%) to support economic growth.

Housing Market & Mortgage Trends in 2025

  • Canadian housing sales slowed in late 2024 but remain 19% higher than the previous year.
  • Lower mortgage rates could trigger a spring home-buying surge, though buyers may still hesitate if economic uncertainty lingers.
  • Fixed mortgage rates are expected to stabilize in the high 3% range by the end of 2025.

Overall, the market is showing mixed signals. While lower interest rates typically make homeownership more affordable, global economic factors (especially tariffs) could create new challenges.

BoC’s March 2025 Decision: Cut or Pause?

  • According to mortgagelogic.news, there is a 54% chance of another rate cut on March 12, 2025.
  • If tariffs are confirmed, rate cuts are more likely.
  • If inflation rises unexpectedly, the BoC may pause rate cuts to prevent further economic overheating.

The BoC’s primary goal is to balance inflation control while supporting economic growth. Its decision in March 2025 will be critical in setting the course for the remainder of the year.

Key Economic Indicators to Watch

  1. Inflation Rate – December 2024’s headline inflation fell to 1.8%, but core inflation rose to 3.5%.
  2. Employment Data – Canada added 76,000 new jobs in January 2025, lowering the unemployment rate to 6.6%.
  3. GDP Growth – November GDP shrank by 0.2%, but slight economic recovery is expected in early 2025.

These indicators will play a huge role in determining the direction of interest rates in 2025.

Interest Rate Forecast for 2025

  • Without tariffs: The BoC rate could drop to 2.5% by year-end.
  • With tariffs: The BoC may need to cut rates further (possibly down to 1.5%) to avoid a recession.
  • Variable mortgage rates will continue to drop as BoC cuts rates.
  • Fixed mortgage rates may stabilize with slight declines, depending on economic conditions.

Borrowers should stay updated on economic trends and prepare accordingly for their mortgage decisions.

Advice for Homebuyers & Borrowers

  • Fixed vs. Variable Rates:
    • Variable rates could offer savings if BoC continues to cut rates.
    • Fixed rates provide stability for those who prefer predictable payments.
  • Lock in rates now: A rate hold can protect against short-term fluctuations.
  • Monitor U.S. trade policies: If tariffs are implemented, BoC may cut rates faster to support the economy.

Final Takeaway

Mortgage rates in Canada are on a downward trend, but U.S. policies, inflation, and employment growth will determine how quickly and how much rates decline in 2025. Borrowers should stay informed and consider their mortgage options carefully. 🚀

Frequently Asked Questions (FAQ) About Mortgage Rate Trends in Canada for 2025

1. Will mortgage rates go down in 2025?

Yes, mortgage rates are expected to continue declining, but the pace depends on inflation, employment data, and U.S. economic policies.

2. How will U.S. tariffs impact Canadian mortgage rates?

If the U.S. imposes 25% tariffs on Canadian goods, it could create economic instability and inflation, possibly leading to aggressive BoC rate cuts.

3. Is 2025 a good year to buy a home in Canada?

It could be! Lower mortgage rates make buying more affordable, but buyers should watch market trends and possible economic disruptions before making a decision.

4. Should I choose a fixed or variable mortgage in 2025?

  • Variable mortgages could be better if rates keep falling.
  • Fixed mortgages are safer if you want predictable payments.
  • Speak with a mortgage expert to find the best option for you.

5. When is the next Bank of Canada rate decision?

The next BoC rate announcement is on March 12, 2025. This decision will set the tone for the rest of the year.

About Avaljit Sandhu – Mortgage by Aval Sandhu

I’m Avaljit Sandhu, a mortgage expert helping homebuyers, self-employed individuals, and investors secure the best mortgage rates and financing solutions in Manitoba and Winnipeg. Whether you’re looking for a self-employed mortgage, first-time home loan, or refinancing options, I can guide you through the process with expert advice and competitive rates.

📞 Contact me today for a free consultation!

12 Feb

Self-Employed Mortgages in Manitoba

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Posted by: Avaljit Sandhu

By Avaljit Sandhu – Mortgage by Aval Sandhu

Owning a home in Winnipeg or anywhere in Manitoba is a dream for many, but if you’re self-employed, getting a mortgage can feel like an uphill battle. Unlike salaried employees, proving your income as a business owner, freelancer, or contractor can be a challenge. That’s where self-employed mortgages come in!

As a Winnipeg-based mortgage expert, I help self-employed Manitobans secure home financing that fits their unique income situation. Whether you’re a small business owner, gig worker, or incorporated professional, this guide will help you understand self-employed mortgage options in Manitoba and how to qualify.

What Is a Self-Employed Mortgage?

A self-employed mortgage is designed for individuals in Manitoba who don’t receive a traditional paycheck but earn income through their business, freelancing, or contract work. Since your tax returns may show lower income due to business expenses and deductions, some lenders offer more flexible mortgage options to help you qualify.

Who Qualifies as Self-Employed?

  • Small business owners in Winnipeg & Manitoba
  • Contractors and freelancers (plumbers, electricians, IT professionals, etc.)
  • Gig workers (Uber drivers, delivery workers, online entrepreneurs)
  • Realtors, consultants, and commission-based salespeople
  • Professionals who own incorporated businesses

Pros of Getting a Self-Employed Mortgage in Manitoba

✅ Access to Competitive Rates – With a strong credit score and good financials, you can qualify for the same rates as traditional borrowers.

✅ Higher Mortgage Amounts – Some lenders accept stated income mortgages, allowing you to qualify for more than what your tax return might show.

✅ Flexible Approval Process – Many alternative lenders in Winnipeg and Manitoba offer mortgage approvals faster than traditional banks.

✅ Tax Benefits – Self-employed individuals can still write off business expenses while qualifying for a mortgage.

Cons of Getting a Self-Employed Mortgage

🚨 Not All Banks Offer Self-Employed Mortgages – The big banks (TD, RBC, BMO, etc.) have strict lending rules and may not approve self-employed applicants with fluctuating income.

🚨 Higher Interest Rates – If your income is harder to verify, lenders may charge higher rates due to the added risk.

🚨 More Paperwork – You may need to provide bank statements, tax documents, and business records to prove your income.

Types of Lenders That Offer Self-Employed Mortgages in Winnipeg & Manitoba

1. “A” Lenders (Major Banks)

Includes RBC, TD, Scotiabank, BMO, CIBC, and National Bank. These banks have strict mortgage rules and require 2- years of tax returns and financial statements.

2. “B” Lenders (Alternative Lenders)

Lenders like Equitable Bank, Home Trust, and MCAP offer more flexible self-employed mortgage options but may charge slightly higher rates.

3. Private Lenders

If you have low income on paper, poor credit, or need fast approval, private lenders may offer financing. However, interest rates are much higher (7%-18%), so this is a last resort option.

Different Mortgage Types for Self-Employed in Manitoba

1. Stated Income Mortgages

  • Requires 20% down payment
  • No income verification required
  • Higher rates due to risk

2. Insured Stated Income Mortgages

  • Requires at least 5% down
  • Must have good credit and mortgage insurance
  • Lower interest rates than private lending

3. Sagen’s Business for Self (Alt. A) Program

  • Ideal for Manitobans with 2+ years in business
  • Requires proof of business registration & financial stability
  • Not available for rental properties

Self-Employed Mortgage Qualifications in Winnipeg & Manitoba

1. Income Verification

  • Traditional: Use tax returns (T1 General, NOA)
  • Non-Traditional: Use bank statements & financial records
  • Stated Income: No proof of income needed, but higher down payment required

2. Minimum Down Payment

  • 5% down for insured mortgages
  • 20% down for stated income mortgages

3. Required Documents

  • Business registration number
  • GST/HST account number
  • Notice of Assessment (past 2-years)
  • Bank statements to show cash flow

CMHC Self-Employed Mortgage Insurance

The Canada Mortgage and Housing Corporation (CMHC) offers mortgage insurance for self-employed borrowers in Manitoba who can verify their income.

✅ Loan-to-Value (LTV): Up to 95% financing
✅ Minimum Credit Score: 650
✅ Amortization Period: Up to 25 years

This program is not available for stated income mortgages—you must verify your income.

Features of Sagen’s Alt. A Program for Self-Employed Manitobans

Sagen’s Business for Self (Alt. A) Program is one of the best self-employed mortgage options in Winnipeg & Manitoba:

  • Available for purchases & refinances
  • Can finance up to 90% of the property value
  • Requires at least 2 years in business
  • Must show proof of income & business operation

Self-Employed Mortgage FAQs for Manitobans

1. Can I get a mortgage if I just started my business?

Most lenders require 2 years of self-employment. However, alternative lenders may consider newer businesses with strong bank statements.

2. Do I need a higher down payment as a self-employed borrower?

It depends. Traditional lenders require 5-10% down, but a stated income mortgage may need 20% down.

3. Can I use my business income to qualify?

Yes! Lenders will look at bank statements, business revenue, and financial records to determine how much you can borrow.

4. What if my credit score is low?

If your credit score is below 600, you may need a B lender or private lender, but expect higher rates.

Mortgage Solutions Designed for Self-Employed Manitobans

If you’re self-employed in Winnipeg or anywhere in Manitoba, securing a mortgage doesn’t have to be stressful. I specialize in helping business owners, freelancers, and gig workers find the best mortgage options at affordable rates.

💡 Need help with a self-employed mortgage in Manitoba? Contact me today, and let’s get you into your dream home!

📞 Avaljit Sandhu
📧 avaljit@mortgagebyaval.ca

16 Aug

Dreaming of Home Renos?

Products

Posted by: Avaljit Sandhu

How to Make It Happen with a Purchase Plus Improvements Mortgage

Are you considering buying a home that needs some work? With a Purchase Plus Improvements Mortgage, you can finance the purchase of your new home and the renovations to make it perfect—all in one mortgage.

What Is a Purchase Plus Improvements Mortgage?

This type of mortgage allows you to borrow extra funds to cover the cost of home improvements right after buying the house. Here’s how it works:

  1. Find Your Home: Choose a home that needs renovations to match your vision.
  2. Get a Renovation Quote: Before buying, get a detailed quote from a certified contractor. This quote will outline the expected renovation costs.
  3. Include Renovation Costs in Your Mortgage: Your lender will approve the mortgage based on the home’s price plus the renovation costs. For example, if the home costs $300,000 and renovations are $40,000, your mortgage will be based on $340,000.
  4. Complete the Renovations: After you purchase the home, you’ll pay for the renovations upfront using your own funds.
  5. Get Reimbursed by the Lender: Once the renovations are done and inspected, the lender will reimburse you for the renovation costs.

Why Consider a Purchase Plus Improvements Mortgage?

  • Move-In Ready: Renovate before you move in, so your home is perfect from day one.
  • Simplified Financing: Combine the purchase and renovation costs into one mortgage, making it easier to manage your finances.
  • Boost Home Value: Smart renovations can increase your home’s value, giving you a good return on investment.

Key Points to Remember

  • Certified Contractors Only: The renovations must be done by a certified contractor to qualify for this mortgage.
  • Upfront Payment: Be ready to pay for the renovations upfront. The lender reimburses these costs after the work is done.
  • Lender Approval: The lender must approve your renovation plans and costs before you proceed.

A Purchase Plus Improvements Mortgage is a great way to buy a home that needs work and turn it into your dream home, all with a single mortgage. If you’re ready to take the next step, this could be the right choice for you.