MORTGAGE BROKER IN WINDSOR

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• What Is A Mortgage?

If you are buying a home, you will probably need a mortgage. A mortgage is a loan obtained for the purpose of buying a home. Most people do not have enough money to purchase a home. They require a mortgage from a conventional lending institution or private mortgage lender to cover the balance. After obtaining a mortgage, you can make the payments on the agreed schedule.

Every mortgage product is unique, but mortgages share similar components, including interest rates and mortgage terms. The process of applying for a mortgage can be intricate and lengthy. However, with the help of a certified mortgage broker, the process doesn’t have to be complicated. A mortgage broker guides you through the application process and helps you obtain the best rates.

Types Of Mortgages We Offer

Refinancing Mortgage

Refinancing your mortgage enables you to pay your current mortgage and any other debts against your current assets or properties. You can refinance your mortgage to consolidate your debts so that you only have to deal with one instalment instead of multiple instalments. A mortgage refinance is not ideal for everyone. You need to consult a mortgage broker to advise you whether you should refinance your mortgage or continue repaying your existing mortgage. The refinance process involves transferring debts and renewing loan terms. Our experienced mortgage brokers will guide you through the mortgage refinance process to ensure you do not get confused along the way.

Residential Mortgage

Buying a house is the first thing that comes to mind when most people hear about residential mortgages. If you want to own a home, you will need to apply for a mortgage loan unless you have all the money upfront. Each mortgage application case is unique depending on the type, size, and location of the property you are acquiring. When you approach Turkin Mortgage team in Windsor, we will first take time to understand your unique financial situation before recommending the right mortgage option. We will consider your financial capability, the cost of the property, other expenses, and the prevailing market conditions before recommending the right mortgage solution for you.

Commercial Mortgage

Even if residential mortgages are the most common, commercial mortgages are also available to buyers seeking to acquire commercial properties. You may need a commercial mortgage if you want to expand your business by adding more space or starting a new business altogether. In this case, our agents at Turkin Mortgage in Windsor will help you determine the loan that will be ideal for your business. We will recommend a mortgage option that will not strain your business financially. We have helped many clients acquire commercial mortgages with the best rates in the market. Our agents will be glad to do the same for you.

Hassle-Free Closing

We can offer you timely and reliable mortgage solutions irrespective of the type of mortgage you are looking for. Whether you are trying to expand your business or acquire a home for your family, our mortgage brokers will be with you every step of the way. We will also guide you through the process of consolidating your debts using a mortgage loan. Do not hesitate to contact us today for all your mortgage needs. Many people in Windsor have benefitted from our services; you, too, can count on our support.

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• What Mortgage Repayment Choices Do I Have?

You can choose from two options when obtaining a mortgage: fixed and variable.

The interest rate remains the same for the entire loan term for a fixed-rate mortgage. With this option, you are locking the interest rates. There will be no unpleasant surprises because you will know exactly what you are paying.

Most variable interest rate mortgages provide a discount because you will be paying less than the existing market interest rate. You could realize even greater savings if the current market rates fall. However, if the interest rate increases, you might end up paying much more than you would have paid in the case of a fixed-rate mortgage. Some lenders allow borrowers to convert a variable-rate mortgage to a fixed-rate mortgage. To ensure that you choose the right option, consult an experienced mortgage broker to help you understand the pros and cons of each option.

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• What Are The Benefits Of A Pre-Approved Mortgage?

With all the excitement of buying a new home, you may be tempted to jump right into the property listings to identify your preferred mortgage. However, before you jump head-first into looking for a new property, you should seek the help of a certified mortgage broker to have your mortgage loan approved beforehand. Some of the leading benefits of a pre-approved mortgage are:

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• Which Is The Better Option: Fixed Or Variable Interest Rates?

The comparison between the fixed and variable interest rates comes down to cost and predictability. With a fixed-rate mortgage, you will know your interest rate and the exact mortgage payments throughout the loan term. However, with a variable-rate mortgage, your rate could fluctuate. So, which is better, a fixed or variable mortgage rate?

Fixed interest

If you intend to remain in your home for a considerable period and you value certainty, you could go for a fixed-rate mortgage. A fixed-rate mortgage could be worth it despite the extra costs and the risks of pre-paid penalties.

Variable interest

On the other hand, a variable mortgage could be ideal if you don’t mind taking risks. If the interest rates drop during the mortgage term, a variable-rate mortgage could save you money. Your mortgage broker will help you consider both fixed and variable-rate mortgages to help you choose the viable option.

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• How Much Do I Need For The Down Payment?

A down payment is money you pay upfront in order to get a mortgage. The minimum down payment in Canada is 5%, but this varies depending on the price of a property. You must purchase mortgage default insurance, usually known as CMHC, if the down payment you make is less than 20%. You can pay the down payment in monthly instalments or as a lump sum amount.

The down payment you made is subtracted from the price of the home you are buying, while the mortgage covers the rest of the cost. The larger your down payment, the more savings you can make on the interest. Your mortgage broker will help you calculate the down payment you should make for the desired property.

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• What Are Closing Costs?

Closing costs are charges and fees that you pay above the purchase price of a property. They include the fees associated with originating and underwriting a mortgage. You will incur appraisal costs when verifying the property value. You will also incur home inspection fees to determine the state of the property and ensure that you don’t incur unexpected repair costs in the future. Other closing costs include real estate commissions, insurance premiums, taxes, and title and record filings. When budgeting for the closing costs, you should set aside between 2% and 4% of the purchase price.

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• What Documents Will I Need To Finalize My Mortgage?

You will need several documents to finalize your mortgage in Windsor:

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• Important Terms To Know When Closing A Mortgage

You should understand the following terms when closing a mortgage:

Deposit: This is the amount you pay to secure a property.

Amortization: This is the period it takes to pay off your loan in full.

Appraisal: This involves evaluating the property you are acquiring to determine its value.

Home Inspection Fee: It is the cost incurred when examining a property to determine its structural integrity. This saves you from investing in a substandard property and later incurring unexpected repair costs.

Property Tax: This is tax paid when transferring property from one person to the other.

Prepayment Option: This applies to a closed mortgage, whereby you are allowed to make early payments against the principal loan amount. You will incur penalties with some prepayment options, but other options have no penalties.

Loan to Value Ratio: This is the value of your property, less the outstanding mortgage amount.

Term: This is the repayment period or the timespan of your mortgage. At the end of the mortgage term, you can renew the mortgage with your existing lender or find a new lender.

Mortgage Loan Insurance: You must pay this insurance if your down payment is less than 20%. The cost of the insurance depends on the mortgage size.