Would now a good time to break your mortgage and refinance? This is a really common concern– when should I break my existing mortgage and refinance for a current best mortgage rate? It’s best to initially weigh out the costs. Breaking your Mortgage A Canadian mortgage rate agreement is a fully committed contract. There is an out clause, however it … Read More
Mortgage Term Vs. Amortization
Do you understand the difference between your mortgage term and your amortization period? A frequent source of confusion for potential homebuyers is the difference between a mortgage term and amortization period. A standard Canadian mortgage rate has a 5-year term with a 25-year amortization period. Mortgage Term The mortgage term is the length of time you commit to a low … Read More
Using a Home Equity Loan for Debt Consolidation
Have you considered this popular alternative? The biggest debt you are going to deal with as a property owner is your mortgage. With the right approvals, you are able to borrow against the equity of your house with a home equity loan. What is a Home Equity Loan? This style of loan is somewhat different to a home equity line … Read More
What are Blended Mortgages?
Blend your mortgage to improve your rate. Quite a few people are wondering how to lower their current mortgage costs. Generally, the mortgage penalties you incur to break your mortgage are set up as the greater of three months interest or the value of your Interest Rate Differential. If you’re going to break your mortgage, try and do it when … Read More
Open or Closed Mortgage?
Open or Closed? Do you know which option is right for you? Closed mortgages provide lower interest rates than open mortgages. Nonetheless, open mortgages include a smaller amount of fees. What is a Closed Mortgage? Closed mortgages cannot be prepaid, renegotiated or refinanced prior to maturation without paying a penalty. The majority of closed mortgages do provide a little flexibility … Read More