One of the most important decisions a person will make is to obtain a mortgage. With so many choices and decisions to make throughout the process, the right advice can have a considerable financial impact. It is best to be prepared by seeking a pre-approved mortgage before shopping for a home. This allows the borrower to establish a limit on the purchase. By knowing what amount the borrower is pre-approved for will help narrow down the home in the search. There are hundreds of lenders within Canada that will assist the borrower in the pre-approval process as well as help lock in the best rates possible.
A national Canadian mortgage brokerage that loans home loans to clients in all territories and provinces is CanEquity. CanEquity can access over 75 major lenders across Canada. Doing this gives CanEquity Mortgage the ability to shop around the mortgage market and even offers the client the best possible mortgage options, service, and rates. They also specialize in mortgage renewals, no money down home loans, and debt consolidation.
Most of the mortgage services that are offered by CanEquity are completely free and may save the borrower thousands of dollars in high interest and monthly payments.
From using a Registered Retirement Savings Plan to a low down payment, buying a home has never been so easy. Here are details of down payment options for low-down and conventional payment insured mortgages:
As the borrower shops for a mortgage, there are several types to consider. There are also factors such as how long the borrower intends on living in the home and interest rates should be considered when deciding upon a conventional, open, or closed mortgage.
A fixed rate mortgage’s interest rate is locked in for the entire term of the mortgage. Payments are set for the term in advance, so this provides the borrower with the security of knowing exactly how much payments will be throughout the whole term. These mortgages can be open without breakage costs at pay off or closed with breakage costs being assessed if paid off before maturity of the loan.
A borrower can make the most out of their low mortgage rates if they acquire a fixed mortgage. Payments will not increase even if the prime rate does. The borrower can choose from a number of terms and has the option to pay a portion of the mortgage in advance. The borrower can also increase the payments during each mortgage year, which will allow for faster payoff of the loan.
Variable mortgage rate payments are set for the term even if interest rates fluctuate during that time. If the interest rates decrease, more of the payment goes toward the principal. If the rates go up, more of the payment goes toward the interest. These mortgages can be open or closed.
The variable rate mortgage provides the borrower with the ability to take advantage of the falling interest rates and to switch to a fixed rate mortgage whenever they feel they can.
The borrower can complete their mortgage application faster if the following information is prepared: