Purchasing a Home
One of the first things that must be determined when searching for a mortgage is the end use of your property. Below is a list of mortgages, some of which you may find best suits' your preferences. You can always contact a RealEstateProNet Mortgage Specialist and refer to your findings on this page and they will find you a lender to you specific mortgage.
Section I
Residential Mortgages are divided into 2 categories:-
High Ratio Mortgages - This applies when your down payment is 20% or less of the value of your property (Usually requires mortgage loan insurance, Canada Mortgage and Housing Corporation - CMHC, or Genworth Financial Canada)
Conventional Mortgages - This applies when your down payment is 20% or more of the value of your property. (Usually does not require mortgage loan insurance).
Section II
Closed Mortgages - Doesn't allow for a prepayment or early repayment of your mortgage except on the sale of the property, before the term ends.
Open Mortgages - Borrowers are free to repay all or part of their principal amount at anytime with or without notice or penalty. Conditions are usually outlined in the contract.
Fully Open Mortgages - Principal payments can be made at anytime, in any amount, in addition to the regular mortgage payments. This option's great for people who plan on buying and quickly reselling the property.
Section III
Fixed Rate Mortgages - The interest rate on this type of mortgage is determined and remains for the mortgage term.
Variable Rate Mortgages - The interest rate charged on this type of mortgage will fluctuate with market interest rates.
Convertible Rate Mortgages - Interest rates on this type of mortgage is similar to that of the Variable Rate Mortgage with the added option of locking into a Fixed Rate Mortgage at anytime without penalty.Section IV
Other Features
Cash Back - This is where you can borrow cash based on a percentage of the mortgage principal. This ranges from 1% to 7% and cannot be used as a down payment.
Assumable Mortgage - Allows anyone purchasing a property to take over its existing mortgage.
Portable Mortgages - Transfers your current mortgage to a new property. (Will be subjected to appraisals and credit approvals)
Step Mortgages - This options' great for consolidations and/or future investments. This attaches a line of credit to your mortgage as money when you need it.
Click below and discuss these options with a RealEstateProNet Mortgage Specialist near you. Refer to this page and they will find you the best suited mortgage that fits your needs.
