MORTGAGE BROKER IN OSHAWA

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• What Is A Mortgage?

A mortgage is a legal contract between a lender and a borrower in which the borrower acquires funds to purchase a property, most commonly a home. Borrowers must repay the borrowed funds plus interest over a set length of time, typically 15 to 30 years. Because the property serves as security for the loan, if the borrower fails to make the required payments, the lender can confiscate the property through a process known as foreclosure.

The principle, interest rate, length, and kind of mortgage are all components of a mortgage. The principal amount is the borrowed money, and the interest rate is the cost of borrowing the funds given as a percentage. A mortgage’s term is the amount of time the borrower has to repay the loan, but the kind of mortgage refers to the specific lending program, such as a fixed-rate or adjustable-rate mortgage.

Types Of Mortgages We Offer

Refinancing Mortgage

If you’re thinking about refinancing your mortgage, talk to a one of our specialists for convenient, flexible and affordable options. Here are just few reason why would you want to consider this alternative:

– Renovation

– Other Property Investments

– Education

– Weddings

– And other solutions

Another common reason for refinancing is to consolidate debt such as higher interest credit card balances and loans. By consolidating these debts into your house cost at a lower interest rate, you can save money and have all your debt in one place.

Commercial Mortgage

Are you looking for an industrial mortgage for a property such as a factory, warehouse and/or other industrial plants? We have extensive experience in the industry. We cover properties of all sizes and provide you with the maximum savings. We take a customized approach to every client. If it is your dream to open a long-term business on the property or as an investment with the intent of selling, we have a plan to suit your needs.

Hassle Free Closing

The team of professionals at Turkin Mortgage can assist you with any of your loan needs. We offer expert advice on all loan options. Additionally, we offer the most incredible deals and possibilities in Oshawa. We provide financial support for different reasons, like when your family is relocating, scaling a business, consolidating your obligations, and more. Our skilled and experienced team will review your case and recommend the ideal financing option that fits your financial needs. Reach out to us today, and let us help you solve your problem.

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• What Mortgage Repayment Choices Do I Have?

Mortgage repayment options are basically two – open and closed repayment plans.

Closed Repayment Mortgage Plan

Closed mortgages may not offer the same level of freedom as open plans. For instance, lump sum payments are allowed, but full prepayments are frowned upon and will result in fines. Our team will evaluate your needs and recommend the best mortgage repayment plan alternative. We help our clients by examining their financial situation, comparing mortgage options from various lenders, and negotiating better terms on their behalf. Additionally, we offer useful guidance on interest rates, payment schedules, and payment options, ensuring that you choose a mortgage plan that fits your goals and budget.

Open Repayment Mortgage Plan

An open repayment plan allows payments to be made at any time without penalty. Payment terms are often shorter, implying that the interest rate would be greater.

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

A pre-approved mortgage provides many benefits to homebuyers, including:

Budgeting

Borrowers may quickly search for residences that meet their financial situations and budgets with a pre-approved loan because they know how much they qualify for.

Simplifies The Purchasing Procedure

Pre-approval can also speed up the entire home-buying process by expediting the mortgage application and approval process.

Pre-approved Mortgages Demonstrate The Buyer’s Intent to Transact

Furthermore, sellers see this as a serious indication that you have the financial means to acquire their home, providing you with an advantage over other purchasers. You may even have more bargaining power when negotiating with sellers because you may demonstrate your financial readiness and capacity to make an offer immediately.

Overall, getting pre-approved for a mortgage can save you time, reduce worry, and increase your chances of finding and obtaining your dream house. It is an important stage in the home-buying process that will benefit prospective homeowners.

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

When it comes to interest rates, it is totally up to the individual. Nonetheless, in many cases, the borrower’s risk tolerance is the primary factor influencing this decision. Risk-averse borrowers frequently pick fixed interest rates, whereas borrowers who are not risk-averse prefer variable interest rates.

Fixed interest

In Canada, fixed interest rates are preferred over variable rates. Although they’re typically slightly higher than variable rates, they’re more secure because the borrower knows what their monthly payments would be in advance. As a result, they’re particularly appealing to people with little financial resources.

Variable interest

Variable interest rates, on the other hand, are tied to the prime rate and rise and decrease in sync with prime interest rates. They are less expensive in the long term than fixed interest rates. If the uncertainty of this choice does not appeal to you, fixed interest rates are your best bet.

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• How Much Do I Need For The Down Payment?

The down payment required to secure a mortgage in Canada is proportional to the home’s price and the type of mortgage being sought. In most cases, the bare minimum down payment is:

– 5% of the first $ 5,000 dollars spent
– 10% on the remaining balance between $500,000 and $1,000,000
– Properties over $1,000,000 qualify for a 20% discount

If your down payment is less than 20%, mortgage default insurance may be required. However, if your down payment is more than the required minimum, you may qualify for a better interest rate, cheaper monthly payments, and a shorter loan term.

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• What Are Closing Costs?

Closing fees are the costs that borrowers or buyers must pay to complete a property acquisition transaction when buying a home. Lenders often require borrowers to set aside 2-4% of the property’s value to cover these fees. The following are typical closing costs:

The above-mentioned costs should feature in your budget.

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• What Documents Will I Need To Finalize My Mortgage?

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• Important Terms To Know When Closing A Mortgage

Amortization – The amount of time it takes the borrower to pay off the mortgage completely.

Appraisal – A professional’s assessment of a property’s worth.

Deposit – Payment made by a borrower to secure a property.

Down Payment – The initial necessary amount paid for a property by the buyer or borrower out of their funds.

House Inspection Fee – The buyer is responsible for the cost of inspecting the structural soundness of the property.

Loan to Value Ratio – The size of the mortgage in relation to the property’s worth.

Prepayment Option – A mortgage option that allows borrowers to repay principal installments early. Some prepayment choices carry fines, while others do not.

Property Transfer Tax – A tax levied on the transfer of a property from one owner to another.

Mortgage Loan Insurance – Insurance purchased by buyers whose down payment is less than 20%.

The length of your mortgage contract – As the term of the mortgage expires, you must either renew it or find a new lender.