The Beginner’s Mortgage Guide
What is the difference between a Fixed Rate Mortgage and a Variable Rate Mortgage? With mortgages you pay a price for certainty. You generally pay more for a fixed rate mortgage because the lender is taking the risk as to what the rates will do by fixing the rate for you. You generally pay less for a variable rate mortgage because it is you that is taking the risk of uncertainty as to how interest rates will move - up or down. When you take out a fixed rate mortgage, your interest rate will never change throughout the term.YOUR lending institution will only advise you on their own product. You could visit every institution out there, one by one if you had time..
Can you get a mortgage if you have a County Court Judgement (CCJ)? Having such a judgement listed against you may mean it is difficult to obtain a mortgage through most lenders. However there are an increasing number of specialist lenders who will lend to people with a CCJ or other credit problems. Tick the Impaired Credit option on our Mortgage Wizard preferences page to see a selection.
Are there fees for your services? There is no fee on conventional mortgages as I receive their fees from the financial institutions. However in some circumstances lender/broker fees may apply.You may find links to all the major mortgage lenders or the best mortgage interest rates on the internet A home inspection prior to purchasing a home or condominium can bring peace of mind when you sign the sales contract. Knowing what to expect both inside and out will help you make an informed decision about the value of the home and the future upkeep.
How does a mortgage broker get paid? MOST Financial Institutions pay a referral fee to the Broker for doing all the legwork and credit research for them ( the job of a loans officer). Since this service is valuable, a commission is paid and in these cases Home Mortgage Canada does not charge a fee. In some circumstances, a client’s financial requirements, credit, or job situation is more complicated and in these cases fees payable to the Mortgage Broker and/or the Lender may be total costs for the same interest rate, loan amount, and loan program. Ask if the total costs include discount points, origination fee, title company fees, escrow company fees, and county recording fees. The lowest APR may not be the lowest total cost loan for your personal financial plans.
What is the difference between an Open and Closed mortgage? Open mortgages can generally be paid off at any time without penalty. They are suited to homeowners who have some uncertainty in your lives, are planning to sell in the near future or those who want the flexibility to make large, lump-sum payments before the end of the term. Compared to open a closed mortgage offers little to no privileges in paying off your mortgage early. You can not pay off your mortgage without attracting prepayment penalties, from the lender.A pre-approved mortgage provides you with a interest rate guarantee from the lender for a specific period of time (usually 90-120 days) and also gives you the maximum amount of mortgage that you qualify for. This is the first step in the Home Buying process.
Can I still obtain a mortgage if I have been bankrupt? Yes, but it depends on the circumstances surrounding your bankruptcy as to when you would be eligible and what products are available to you. All lenders have different policies so the best thing would to discuss your situation with me to determine which lenders will be the best for you. At the very least I can help you develop a plan to get you prepared for home ownership as soon as possible.No, if you transfer from one lender to another at your renewal date there will not be any penalties. If you switch before your maturity or renewal date there may be an IRD or 3 month interest penalty. It is important to consult with me to determine whether or not this will work for you. A new lender will often assist with incentives to lure you over to them.
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