MORTGAGE BROKERS IN VAUGHAN

• 

• Mortgage Defined

A property mortgage can be the largest debt most people will take on. Thus, choosing the right mortgage for your family is vital. Our mortgage brokers Vaughan explain mortgage basics here and also draw your attention to common pitfalls to avoid. Mortgages are loans used to finance the purchase of homes. Mortgage broker Vaughan calls a borrower mortgagor and a lender mortgagee. You will be required to pay a down payment which is about 20% of the value of the home. Your mortgage will be computed this way: Home Value – Down Payment. That amount must be paid in full within a time interval called the amortization period.

The down payment can affect your mortgage to a great extent. If you can give a down payment that is 25% or more of the house value, your mortgage will be categorized as a conventional mortgage. If it is less than 25%, your mortgage will be classified as a high ratio mortgage.

Types Of Mortgage Which Our Vaughan Mortgage Brokers Offer

Mortgage Refinancing

Never let yourself get hassled and run around over trying to get your Vaughan home refinancing done. One phone call to us will ensure that you are not only getting the best rates but the same fast service as you would get from a new residential or business loan. We are the specialists in the Vaughan area, and we take pride in our work.

Commercial Mortgage

Having a business plan is essential to making your business successful. However, all that is useless without a location for your offices or storage. Finding a commercial place is where we come in. Our commercial mortgage experts will help you get your contract signed, and it will be just as quick and simple as that. Since we are getting better rates from lenders than you dealing with a bank directly, the result is a lot more for your savings that you can use toward your other costs of getting your business up and running.

Residential Mortgage

Buying a home in Vaughan will require a mortgage, and getting the lowest possible rates means giving us a call first. We have deep and significant relationships with lenders, so we can get you rates lower than you will find anywhere. More often than not, we can get you rates lower than what lenders advertise. They will not do that for everyone, but fortunately for you, they do such favours for us.

Responsible Borrowing

Owning a home in Vaughan financed by a mortgage calls for responsible borrowing on the part of the borrower. Having a good sense of accountability over your loan gives you the opportunity to make the investment work well for your finances. Some people were successful in that regard, while others find themselves struggling to catch up.

The mortgage might put you deeper and deeper into debt if you are negligent. You might eventually sell the property- leaving you and your family without a roof over your heads. Once you find payments are getting tougher to make, call the attention of concerned institutions (or even your lender). There can be a quick way out of the problem which you are not just aware of.

• 

• Mortgage Types

Mortgages come in different types:

Open Mortgages

Some people want to have larger payments or pay in full before the end of the amortization period without incurring penalties. An open mortgage is most suitable for them.

Closed Mortgages

Closed mortgages are mortgages that can be described as “fixed”. The term and the rate remain constant until the end of the mortgage payments. This “invariable” quality makes these mortgages easier to manage than open mortgages.

Convertible Mortgages

These mortgages have a special stipulation regarding the ability of the borrower to make a change on the mortgage term. The mortgage starts as an open mortgage and can be changed to a closed mortgage along the way.

Reverse Mortgages

This mortgage is specifically designed for the elderly, allowing them to draw out money from their home equity to be used for day-to-day expense.

• 

• Preapproval

You need to get a preapproval which states the amount of loan you can borrow. This is an opportunity for you to assess available homes and avoid looking at those that are out of your budget’s range.

• 

• Terms And Rates

Check for the mortgage term which is the period in which a lender can release funds to a borrower. Most mortgages have a term of 2 to 5 years.

When a term ends, it opens a new opportunity for you to renegotiate your mortgage. You can pay the balance in full or go for another mortgage term with a lower principal and a lower interest rate. You can repeat and repeat this again until the mortgage is fully paid.

• 

• How To Quickly Pay Off Your Mortgage

Paying off your mortgage earlier than scheduled is tough, but if you’ve got a chance to do it and you have money to use to make that happen, go for a pay-off. Check below for the pay-off strategy that will suit you.

Make payments more frequent: This is done by paying more frequently than what is stated in the contract. Negotiate for weekly or biweekly payments.

Make prepayments (also called anniversary payments): Many mortgage deals allow the borrower to pay up to 20% of the mortgage balance every year. Many people use their yearly bonus or their tax refund for prepayments.

Lump sum payments: Lump sum payments can hugely pull down cost.

Down payment: You can double it and keep yourself from paying insurance for the mortgage.

A shorter amortization period: The rate will be low but payments will be higher compared to a mortgage with a longer amortization period.

After the end of the mortgage term, say five years, you will be allowed to negotiate for a lower rate for paying the rest of your mortgage payments. A longer amortization period may not be advisable since you will incur a higher interest rate for that. But some prefer a longer amortization period because monthly payments are lower compared to a shorter amortization period.

• 

• Key Questions To Ask

This search for a mortgage deal should be guided by important questions and here are some of them:

• 

• Home Types

Mortgage companies categorize properties in Vaughan into the following types:

• 

• Finalization Of The Mortgage

The following documents must be submitted to your mortgage institution:

• 

• Closing Terms And Cost

Other charges and fees will be imposed. The first is the deposit, a part of the down payment, which must be paid at the signing of the Agreement of Purchase of Sale. This document will show a summary of terms and costs.

A property tax payment will also be required. This tax payment is due to your owning a private property and will be paid on a monthly basis or semi-annually. You need to check the tax rate of your locality for this.

Key terms for mortgage transactions are:

Mortgage insurance – an insurance coverage against the mortgage. Ask them about the benefits it can give you.

Appraisal – the process of assessing the home’s value.

Deposit – is the money put forward by the buyer to show he is not having any doubt about purchasing a home.

Down Payment – A fraction of the total mortgage value, which is paid at the time of purchase.

Home inspection fee – a charge imposed on the borrower for the team that checked the house’s structural and mechanical integrity.

Property Transfer Tax – the tax paid due to someone’s buying a private property.

Legal Fees – Cost for hiring a lawyer to help in the processing of the property transfer.

Mortgage Loan Insurance – This insurance allows buyers to have a zero down payment. The premium amount is based on the amount of the loan.