|
Additional interest:
The amount sometimes charged by the lender when you prepay principal or renegotiate the terms of your mortgage. The amount compensates the lender for loss of revenue. Call us before you agree to any additional interest payment.
Amortization:
The amortization is the length of time it takes to pay off a mortgage, assuming that the interest rate and payment amount do not change, that all payments are made on time and that no additional payments are made.
In
Canada
, typically, the longest amortization period is 25 years, although some institutions will do mortgages for a longer period. A short amortization period will save you thousands of dollars in interest in the long run, but it increases your monthly payment. Give us a call to help you determine what is best for you and your budget.
Appraised value:
An estimate of the market value of the home and property that the borrower pledges as security for the mortgage. This value may be more or less than the purchase price of the property. Give us a call before you arrange for an appraiser. Some lenders will require that you use their appraiser.
Assets:
The things of value that you own, such as your home, car or summer home
Below prime:
This term is usually used for variable rate mortgages where the interest rate varies with money market conditions. Give us a call to see is a variable rate mortgage is the best for you.
Blended rate mortgage:
A mortgage that combines the amount the borrower owes under an existing mortgage with additional mortgage money required by the borrower. The interest rate for the new amount borrowed is a "blend" - or combination - of the interest rate of the old mortgage and the interest rate for the additional amount to be borrowed. Give us a call to see if a Blended Rate Mortgage is the best for you or if it is better so simply renegotiate the first mortgage that you have.
Blended mortgage payment:
A regular monthly mortgage payment composed of both principal and interest in which part of the money received is applied toward the principal of the mortgage and part is to pay the interest. This is the norm for mortgage payments.
Bridge financing:
A loan made for a short term, to "bridge" (or cover) the time gap between completing the purchase of one property and finalizing arrangements to pay for it. The need for this type of financing often results from mismatched closing dates. Ifyou need to buy your new home before you have sole your existing home, give us a call.
CMHC/Canada Mortgage and Housing Corporation:
The Canada Mortgage and Housing Corporation is a federal Crown corporation that administers the National Housing Act. CMHC's services include providing housing information and assistance to consumers and providing mortgage default insurance for high ratio mortgages. Call us to see if you can use their services.
Rates
The Mortgage Prime Rate is 5.15%. The rates given are for qualified applicants of single family prime residential properties and are subject to change without notice. Clients with no down payment, borrowed down payment and amortization greater than 25 years are subject to higher rates.
We can also arrange mortgages for equity-based lending, non-qualified income, business for self, and impaired credit and secured lines of credit. Please
Contact Us
for any specific needs you may have.
|
5 Year Closed:
|
5.65 %
|
|
4 Year Closed:
|
5.50 %
|
|
3 Year Closed:
|
5.30 %
|
|
2 Year Closed:
|
5.30 %
|
|
1 Year Closed:
|
5.15 %
|
|
* All rates subject to change
|
How much of a down payment do I need when buying a home?
A conventional mortgage requires a down payment of 25% or more of the purchase price of a home. But mortgages with down payments as low as 0% are available. Give us a call to help you work through just how much of a down payment you need.
What costs should I expect when I buy a home?
In addition to the purchase price, be prepared for closing costs associated with closing your purchase agreement including:
-
Legal fees.
-
Appraisal fees.
-
Survey fees.
-
Land transfer tax.
-
Property taxes and utility bills that the previous owner has prepaid.
These costs range from a few hundred to a few thousand dollars, depending on the size and value of the home you purchase. Give us a call to help you determine if you have figured out how to best pay for these costs.
Why do I need a survey?
A survey is a document providing details of a property's boundaries, measurements and structures. It will also describe any easements, rights-of-way or encroachments made by either your property or by adjoining properties onto your property. Getting a survey can settle or avoid property disputes with your neighbours. Different lenders accept appraisals from different appraisers. Call us before you book an appraiser.
Why is a pre-arranged mortgage such a good idea?
Based on your current financial situation and a satisfactory credit review, a pre-arranged mortgage determines:
The amount you can borrow.
The interest rate of your mortgage.
How much your mortgage payments will be.A pre-arranged mortgage is free of charge and carries absolutely no obligation
Give us a call to help you get a pre-arranged mortgage
Why should I shop for my mortgage?
Banks are not the only mortgage lenders in the market. The large banks might lead you to believe that they are the only ones with flexible products, but in most cases, mortgages fit banks better than they fit customers. Given that your mortgage will be the biggest loan you will ever take in your life, it is important for you to understand all the options available to you and settle on a mortgage that suits you. Our job is to help you shop for a mortgage and save you valuable time. Give us a call
How can you get an error corrected on your credit file?
If you find an error or inaccuracies on your credit report, you may contact the credit bureau directly to have the errors corrected. However, the bureau must then contact the organization that reported the erroneous information, since it cannot make a correction without first confirming that an error has been made. For information regarding your financial institution's complaint-handling process, contact the Financial Consumer Agency of Canada (FCAC) toll-free at: 1-866-461-3222, or contact your branch directly
How much can I afford?
Before you start shopping for a house, and for a mortgage, it is important for you to determine how much you can afford. Give us a call.
Pre-approval?
The easiest way to find out is to ask for a "pre-approval" from a financial institution. To do this, you submit your financial information to a potential lender, which approves you for a predetermined mortgage amount. The pre-approval agreement, which normally does not involve any obligation on your part (you are not signing a mortgage contract), may also guarantee the interest rate for a mortgage taken out during the 60- to 120-day pre-approval period. Give us a call to help you with pre-approved mortgages.
Look at your financial situation?
Although you may find the financial institution's pre-approval convenient, remember that the pre-approved loan represents the maximum amount you could pay for a house, according to the lender's criteria and the information you have provided. However, it may overestimate what you can actually afford, since it does not take into account the extra costs associated with purchasing a house (for example, the unexpected expenses you may incur from time to time, changes in interest rates that might substantially increase your housing costs, and any other future financial obligations such as the replacement of a car). It is therefore important that you fully understand what your financial situation is and your financial plan to handle future payments.As a rule of thumb, your maximum monthly housing costs should not exceed 32 per cent of your gross monthly income, and your monthly debt payments should not exceed 40 per cent of your gross monthly income. Give us a call to help you figure out how much you can afford.
Extra costs?
Remember that there is more to buying a home than paying the down payment and mortgage. You'll need to budget another 1.5 to 4 per cent of the price of your home to cover extra costs such as legal fees, land transfer tax and tax adjustments. Give us a call to help you figure out how to pay for these costs.
US Mortgage
| English US mortgage and loan calculators: |
|
