Mortgage amortization is the length of time that a mortgage loan is set up for. In other words this is the maximum amount of time a borrower has to pay out the loan based on the initial mortgage payment set up. Currently the longest amortization in Canada based on Government rules is 30 years.
Long term mortgage rates for both 7 year and 10 year are now under 4%. Having a mortgage locked in under 4% for next 7 to 10 years is an amazing option especially on a investment property.
We have all heard the doom and gloom that is surrounding the world economy especially in Real Estate. Although some parts of Canada have being hit by a negative decline in Real Estate Value Toronto and GTA has continuously performed well. As a result the equity in ones property has increased. With current interest rates being as low as they are, now could be an excellent time to tap into that equity take out if needed. Equity in a property belongs to the owner, it yours and can be used for a number of things
The Minimum down payment required for a mortgage is 5%. On rental or investment properties it is 20%. This is a government law.
Sources for down payment can be banks accounts, investments, Lines of credit (secured against property), Gifted funds.
The main objective of any mortgage borrower is to pay down there mortgage as soon as possible. Naturally coming up with the money to do this is not that easy. Two ways to chip away at your mortgage is to take an accelerated payment frequency and take advantage of the automatic payment increase allowed on your mortgage by your mortgage lender. Here is an example.
I hope the kids are not to wired today after all that sugar last night.
When your mortgage is up for renewal you do have options. Believe it or not nearly 85% of Canadians sign their mortgage renewal letter without actually considering other options for a better rate or product. When you receive a renewal letter from your lender, the lender (mainly banks) will not offer you the best discount rate. They are hoping (and in most cases are correct) that you will just sign the renewal letter and send it back to the lender. The lenders (banks) save allot of money by taken this approach.
below are some reason why you should always check in with your mortgage broker before signing any renewal agreement with a bank. You do not have to renew with your current lender at renewal time. Your mortgage contract is open again and you can go elsewhere.
Mortgage Rate Increase:
Rates in the bond market ended last week considerably higher than where they opened, as optimism in the second half of the week outweighed some of the pessimism that presented itself on Monday and Tuesday. All told, the five year market moved about 15bps higher over the past week.
If you are a new immigrant getting a mortgage in Canada has never being easier. You can qualify for a standard mortgage of up to 95% of borrowing. That is right 95%. This program is open for all new immigrants with permanent residency, temporary residency or working visa.
Canada is becoming a safe haven to buy real estate. With our strong banking system and natural rsourses which keep us out of the chaos surrounding the rest of the worlds our real estate prices have remained stable.