Mortgages: What You Need to Know

Monday Dec 05th, 2016


Mortgage is one the the most important things in the home buying process. If not handled wisely, it can shatter your dreams for purchasing the house.

There are 4 factors that are essential in order to get the mortgage on the standard rates and standard down payment plans. These 4 factors are:

  • Good Credit History
  • Down Payment
  • Annual Income 
  • Being Landed Immigrant or Citizen

There are around 30 different lenders bit only 2 main mortgage insurers i.e:

CMHC and Genworth

​Whenever you apply for a non-conventional mortgage through any lender than all your information goes to these insurers, so if your mortgage is refused from on lender, you cannot go to a  different lender with some new piece of information. As the new lender might go to the same insurer and the duplication of data can even black list you from getting the mortgage for a long time.

Therefore your first attempt should be your best attempt.  Not every mortgage consultant is capable/creative enough to qualify you to get the mortgage.

Due to the misleading advertisements on different media like like Radio. TV and Newspaper etc. Most People take mortgages for granted and all they care about are the mortgage rates rather than getting qualified. Once their case is spoiled, they realize the importance of getting qualified.

Types of Mortgages

There are different types of mortgages like; fixed, variable, open and closed. The basic difference is that the fixed mortgage will remain the same for the entire term.

Variable will keep on varying on the prime rate i.e. if the prime will go up it will go up and vice-versa.

Variable open has comparatively higher interest rates than the closed variable, but no penalty if you break the mortgage for selling your house or re-financing and the variable closed has usually 3 months interest penalty for breaking the mortgage but better rates.

To find out more about the detailed differences between these different kinds of mortgages . What are the catches/traps in these mortgages? Which one is the best in general? which one is the best for YOU (keeping your circumstances in mind)? Where and how to apply for the mortgage, call me to discuss in detail or contact me through the website.

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