MORTGAGE BROKER COLLINGWOOD

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• What Is A Mortgage?

At Turkin Mortgage, your trusted Collingwood mortgage broker, we define a mortgage as a loan agreement between a borrower and a lender specifically for purchasing a property. The property serves as collateral, meaning it can be repossessed if repayments are not made. This ensures the lender recovers the loaned amount through the property’s sale, covering the principal and any outstanding interest.

A mortgage includes key elements such as a set term, a principal amount, a negotiated interest rate, and regular repayment amounts. Our mortgage professionals use tools like mortgage calculators to help you understand these factors, ensuring you make informed decisions about your financial future.

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• What Is the Difference Between an Open and a Closed Mortgage?

Choosing between a closed or open mortgage is a critical decision, and as your local Collingwood mortgage broker, Turkin Mortgage is here to guide you through your mortgage options.

Open Mortgage Repayment Plan

An open mortgage offers flexibility, allowing you to pay off the loan early without penalties. However, this flexibility often comes with higher interest rates. Open mortgages typically have shorter terms, ranging from six months to five years, and may be fixed or variable.

Closed Mortgage Repayment Plan

A closed mortgage has restrictions on early repayments, and paying off the mortgage early often incurs penalties. However, closed mortgages typically come with lower interest rates, making them a popular choice for borrowers looking to save money in the long term.

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• What Are the Advantages of Getting Mortgage Pre-Approval?

Mortgage pre-approval is an essential step in the mortgage process, and Turkin Mortgage, your trusted mortgage broker in Collingwood, makes it quick and easy. Pre-approval determines the mortgage size you qualify for, locking in interest rates for 60 to 120 days.

Benefits of Mortgage Pre-Approval:

• Save time by focusing only on properties within your budget.
• Strengthen your negotiation power as a serious buyer.
• Gain clarity on your financial capacity, enabling better planning for your financial future.

• Should I Opt for Fixed or Variable Interest Rates?

Choosing between fixed and variable interest rates is a significant decision that depends on your personal circumstances and risk tolerance. At Turkin Mortgage, our Collingwood mortgage brokers help you weigh your options.

Fixed Interest Rates

Fixed-rate mortgages offer stability, with consistent monthly payments throughout the term. While rates may be slightly higher, they allow for precise budgeting, giving you peace of mind for your financial needs.

Variable Interest Rates

Variable rates fluctuate with the prime rate, often leading to lower long-term costs. However, they require comfort with changing monthly payments, making them better suited for those with flexible budgets.

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• How Much Will I Need For The Down Payment On The Mortgage?

The down payment significantly impacts the type of mortgage you qualify for and the overall cost of homeownership. In Canada, the minimum down payment is 5%, though putting down 20% or more allows you to avoid mortgage default insurance. As your Collingwood mortgage broker, we help you assess your financial situation and calculate the optimal down payment using mortgage calculators to align with your financial goals.

• What Are Closing Costs?

Closing costs are expenses incurred during the purchase of a property. These typically range from 2% to 4% of the mortgage amount and must be factored into your budget. At Turkin Mortgage, our mortgage professionals in Collingwood ensure you are fully informed about these costs, which include:

• Land transfer taxes
• Homeowner’s insurance
• Property appraisal fees
• Legal fees
• Home inspection fees
• Prepaid utility bills

We aim to make the whole process smooth and stress-free, helping you prepare for all financial aspects of buying a home.

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• Understanding The Terms Associated With Mortgages

As your trusted mortgage broker in Collingwood, we believe in empowering our clients with knowledge. Here are some key terms you’ll encounter in the mortgage process:

• Amortization: The total period over which you repay your mortgage in regular installments.
• Appraisal: The professional valuation of the property to verify its market value.
• Deposit: The amount paid to the seller as a sign of good faith, often held in trust.
• Home Equity: The difference between your property’s market value and your remaining mortgage balance.
• Mortgage Default Insurance: Required if your down payment is less than 20%, protecting lenders against defaults.

At Turkin Mortgage, we’re here to simplify these terms and provide clear guidance for your financial future.

For Collingwood residents looking to purchase, refinance, or explore other mortgage options, Turkin Mortgage is your go-to mortgage centre. With our personalized service, competitive interest rates, and commitment to your best interests, we ensure a seamless journey toward achieving your financial goals.