Who qualifies for a mortgage?
Anyone can qualify for a mortgage based on the lender’s criteria. Getting the best advice, payment options and rates is a bigger challenge that will require the help of a mortgage professional.
How Can I pay off my mortgage before the maturity date?
For homeowners who can pay off their mortgage before the maturity date, it is always advised as you would not accumulate additional payments in interest, that can save you thousands of dollars over the course of the mortgage term.
If you want to pay your mortgage off faster, you may change the payment schedule so that you make additional payments between the allotted monthly payments.
Should I get a long-term or short-term mortgage?
There are many factors when deciding what type of mortgage to take on. If you face uncertainty, a short-term mortgage might serve you best. For instance, if you plan on selling your home shortly after purchase, a short-term mortgage can be beneficial. Also, if you feel you may get a better rate in the foreseeable future, opting for a short-term mortgage is risky, provided rates are favourable once your mortgage is up for renewal.
Who is the beneficiary of my mortgage?
You can designate anyone to be the beneficiary, if they meet the lender’s criteria and can make the appropriate payments.
Should I renew my mortgage before or after it matures (is paid off in full)?
Prior to the mortgage’s final payment, you can receive a guaranteed interest rate. This means you can renew the mortgage for the in term before the maturity date, provided you are not looking to obtain a larger loan.
This option may be helpful for individuals who are concerned about facing higher interest rates during the maturity date; however, some lenders may be flexible and will adjust this for you.
What is a down payment?
A down payment is the amount you need up front to cover a percentage of the purchase price of the home you plan on purchasing.
Before searching for homes, you should know the amount you have for the initial down payment. This amount will also determine how much you pay for the home, which is based on the mortgage until it matures.
Can I use RRSPs to pay for a mortgage?
Mortgage down payments can be paid in multiple ways. However, there are some conditions on RRSPs that the government has made.
RRSPs offer flexibility by providing a tax rebate that you can use towards additional expenses. However, using the funds towards a mortgage might not be advised, so it is best you speak with a mortgage advisor to further discuss this option.