Mortgages

If you are thinking of buying a house soon, here are some good tips to help you get started:

A mortgage broker (or mortgage consultant in some jurisdictions) is an independent agent, an intermediary between you the consumer and the mortgage lender. The mortgage broker will shop the available lenders to find the mortgage product that offers the best combination of features, options and rates to suit your individual circumstances. The best part - depending on your credit picture - there is no charge to the consumer for the service!

Self-Employed?

If you’re in business for yourself, you may have been turned down by your bank in your attempt to get a mortgage. Many small business owners and contract workers cannot verify sufficient earnings through tax statements and T4 slips simply because much of their taxes are paid through their companies or written off through the various shelters and deductions available to the self-employed.

Amortization. The number of years it takes to repay a mortgage in full.

Appraised Value. An estimate of the market value of the property used as security for the mortgage. Usually an independent appraiser using a variety of methods determines an estimated value of the property. An appraisal is normally required by a lender. The fee for the appraisal is normally paid by the buyer.

Q. What is meant by mortgage term?

A. Term is the difference between the start and maturity date of the mortgage. You can choose terms of just 6 months, 1, 2, 3, 4, 5, 7, 10 or even a 25-year term. At the end of the term you can either pay off your mortgage, or renew with the same lender or another lender at terms of your choice.