An appraisal is a the opinion a licensed appraiser using a standardized method to evaluate a piece of property. In addition to determining the lending value, an appraisal will be used to evaluate the condition of the property. If the condition of the property doesn’t meet a lender’s criteria, they will not want to mortgage […]
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 […]
Cashback can be a good tool to help you get what you want. It can also be a attractive bit of flash that ends up costing you more in the long run if you don’t actually need it. The first thing you should look at it whether or not you actually need the money for […]
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! 🙂
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 […]
Pre-payment options are the ability to pay down your mortgage principle faster without incurring any penalties. Standard pre-payment options can be used in 2 ways: lump sum payments, and by increasing your mortgage payments above what you are required to pay.
Mortgage principle is the amount of money owed or borrowed that needs to be repaid.
Most mortgages have pre-payment options that allow you to put around 10-20% of the original mortgage principle down, without penalties. Penalties do occur in most cases though, when paying off your mortgage above your pre-payment options (including paying it off in full). Talk to our team about how to minimize these future penalties.
If you’d like to purchase a second home with less than 20% down, the property would need to meet certain criteria. Thanks to our good buddies at www.genworth.ca, here’s a list that you can use to see if you’re good to go. The Type A properties can be purchased with 5% down, while Type B […]
A mortgage is debt instrument, with specified real estate property held as collateral for the debt. The borrower agrees to pay back the debt with a predetermined set of payments. A mortgage allows the borrower to use the lender’s money for various purposes. Most commonly, a mortgage would be used to help purchase real estate. […]