Mortgage default insurance depends on a few factors. The two largest factors though are if you are self-employed, with difficult to prove income, and the amount of your downpayment. If you can get to 20% down, there is a good chance you won’t have to cough up any of these premiums 🙂 For a list of the latest […]
All posts by the mint mortgage crew
What is an IAD (Interest Adjustment Date)?
Bankers looooove their acronyms:) Your interest adjustment date is the day your first payment is made after your mortgage funds are advanced. If the period of time between you getting your mortgage and you making your first payment is shorter than your regular payment schedule, then the first payment out of your account will be […]
What is “land transfer tax” and who pays it?
All provinces have some form of “tax” required when purchasing a piece of property. Most provinces call these a “land transfer tax”, which is exactly what it sounds like – a tax when land is transferred from one person to another. Other provinces, like Saskatchewan, call these “land title transfer fees”. These fees/taxes vary from province to […]
Definition of “default”?
Default’s are the biggest “Oops” of the financing world. When someone defaults on their mortgage, it means they’ve failed to make the scheduled payments. Our advice, start talking with our team before you even miss the first payment. We may be able to come up with some strategies to help prevent your situation from going from default […]
Is fire insurance mandatory?
Riddle: What’s something you’ll pay for and something that you’ll always want to have – but will never want to use? Answer: Fire Insurance! If you’re getting a mortgage, you bet fire insurance is necessary. Banks want to know that their investment in your home won’t go up in flames, which is why its mandatory. […]
definition of “Amortization”
Amortization is the length of time that your mortgage payments are spread out over. A 25 year amortization means that, based on your current rate and payments, it will take approximately 25 years to pay off the total mortgage.
definition of “term”?
The term of your mortgage is the length of time that you have your mortgage contract for, before you have to renew or refinance it again. So for instance, a 3 year term means that the rate and payments you’ve negotiated today will need to be renegotiated in 3 years, unless you choose to do […]
What does “3 months interest” mean?
Most mortgage payments are comprised of 2 parts. The first is the principle – this pays down the loan and reduces how much you owe going forward. The other is the interest – this is the nice expensive thank-you that you reward to the bank for giving you all that dough to begin with. Multiply that interest […]
definition of “Big Bad Wolf”
He’ll huff, he’ll puff, and he’ll blow your savings away. Ask how your penalties will be calculated before entering into your mortgage and if you’re confused by the answer, talk to our team! 🙂
When do penalties happen and what will my penalties be?
Penalties can happen when you pay off a mortgage sooner than you were supposed to and can vary significantly from one mortgage to the next. Around here, we call it the Big Bad Wolf. For variable mortgages, penalties will usually be about 3 months interest. For fixed mortgages, penalties will be 3 months interest or the outcome of the IRD […]