When it comes to buying a house in Canada, understanding the basics of mortgages is essential. A mortgage is a loan that is used to finance the purchase of a residential property. It allows you to become a homeowner while spreading out the cost over time.
There are various types of mortgages available, each with its own advantages and disadvantages. Some common types include fixed-rate mortgages, adjustable-rate mortgages, and variable-rate mortgages. The type of mortgage you choose will depend on your financial situation and risk tolerance.
Additionally, it’s important to familiarize yourself with mortgage terms and amortization periods. An amortization period is the total length of time it takes to repay your whole mortgage that could be up to 25 to 35 years, depending on the amount of your downpayment. By the other hand, a mortgage term is the length of time you are locked into a mortgage contract, that usually can go from 6 months to 10 years. After the term period, you will have to pay the outstanding balance or renovate the mortgage.
Now, last but not least the mortgages rates determine the interest you’ll pay on the loan. It’s crucial to compare rates from different lenders to ensure you get the best deal.
Get in touch with a Mortgage Advisor to help you comparing different lenders and financial products that fit better for you.
Isabel Medina- Mortgage Broker Dominion Lending Group
Contact me at 778 513 0169
or at isabel.medina@dominionlending.ca
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