For many property seekers, financing is an essential aspect to their successful purchase. In fact, before starting the search, all Home Buyers should ensure they qualify for their desired amount of mortgage through a Pre-approval with a Mortgage Advisor.
What is a mortgage, anyway? A mortgage, in simplified terms, is a legal agreement in which a bank or creditor lends money to an individual/entity with interest. They mortgager in return holds the right to the title of the mortgagee’s property until the debt has been paid, or a different arrangement has been agreed upon.
When taking out a mortgage, the Lender generally will require a Down Payment – a percentage of the purchase price the mortgagee must put down first to demonstrate some financial stability. In Canada, the minimum down payment to put down is 20%. If less, the mortgage loan will have to be insured by CMHC, which in return will increase payment fees.
The right mortgage for each individual will vary depending on their situation – thus, it is important to work with a knowledgeable mortgage broker to find the best option for you.
When picking a mortgage, there are several different factors to consider, or ‘shop’ around for:
These are a few of the main factors to consider when shopping around for the right mortgage. Our highly experienced mortgage team at Ohm Property will help first time mortgagees walk through a seamless process; those with a strong knowledge base on the mortgage process can enjoy working with competitive rates with our qualified mortgage brokers.