Key Questions to Ask a Mortgage Broker
When inquiring about a mortgage, it is important to know the right questions to ask a mortgage broker. These questions should be based on your individual circumstances and the best way to approach an inquiry is to have a list of questions to ask a mortgage broker. One of the best ways to approach a mortgage broker is to have them ask you a series of questions to better understand your position as it relates to mortgages. From this understanding, they can help guide you to a solution that would work best. Once the broker understands your current circumstances, here … Continue Reading
Is an Interest Only Mortgage Right For You?
What is an interest only mortgage? Well… it’s exactly that, a mortgage with payments that are NOT amortized but rather interest only payments. It may not make sense why an interest only mortgage would exist or appeal to anyone, but read on and you’ll understand how a mortgage like this can be extremely useful for the right type of borrowers. An interest only mortgage is really a short term solution to one of many problems; lack of cash flow, high interest debt, income tax arrears, power of sale, emergency renovations, etc. An interest only mortgage can be registered in the … Continue Reading
How Loan Amortization and Amortization Schedules Work
When it comes to loan amortization and amortization schedule, most mortgages that common home owners hold are amortized. Amortization essentially refers to the repayment of loan principal over time. When dealing with mortgages, the interest rate is factored in the loan amortization so that each payment is split between interest and principal payments. In the early parts of the amortization schedule it is common for majority of the payments made to be applied to the interest payments and the remainder towards the principal. The schedule itself, outlines the breakdown of each payment as well as the remaining balance or the … Continue Reading
How Large Does Your Down Payment on a House Need to be?
When it comes to putting a down payment on a house, there are a few things to consider. Here in Canada, the minimum down payment on a house is 5% for first $500k an additional 10% on the difference between $500k for anything greater. For example, if the purchase price of a home is $600k then the minimum down payment requirements would be $25k (first $500k) plus an additional $10k (the 10% on the difference 500k-600k). Having said that, these minimum down payment requirements are for those applicants that can demonstrate very strong creditworthiness, job tenure, sufficient income, etc. Even … Continue Reading
How Current Interest Rates Are Determined and Where They’re Headed
When it comes to current interest rates for mortgages, it is important to understand how they come to be and what influential factors are considered when offering those rates. Since the recent market crash in the United States back in 2008, our current interest rates here in Canada have been at an all-time low. In fact, they have remained historically low for almost a decade now. The Bank of Canada is our central bank and It is the responsibility of the Bank of Canada to insure the stability and growth of our economy. As such, the Bank of Canada sets … Continue Reading