Here you will find almost everything you need to know about mortgages. From first time home buyers to experienced home buyers, we help answer all your mortgage questions. You can also contact our Mortgage Expert directly if you have any questions that remain unanswered or to secure the lowest mortgage rates today.
What Is A Mortgage?
A mortgage is a secured loan from a bank or financial institution that allows someone to purchase a house. There are many features of a mortgage, including: size of the loan, maturity of the loan, rate type, interest rate, amortization as well as other factors which influence the repayment of the loan. Similar to other loans, mortgage payment amounts are calculated using the factors described above and are generally paid on a monthly basis, over the course of 25 years.
Mortgages were created to give home buyers the ability to pay affordable monthly payments of both interest and principal. Few home buyers have the funds required to purchase their home outright, and will therefore be required to secure a mortgage so that they may purchase a home.
In Canada, to avoid penalties (CMHC insurance), home buyers are required to put a minimum down payment of 20% of the value of their new home. CMHC insurance can range from 1.75% – 2.95% depending on the amount of your down payment. To avoid costly fees, its always a good idea that your down payment is 20% or greater.
Mortgage Definitions, Home Buyers Tools, Tips and Useful Info: