After all, buying a house is the one most single important and expensive purchase that you will be making in your lifetime!
You will spend a lot of time researching and finding that perfect house. Amenities which may include: Is the new home situated in the suburbs or downtown? Is it close to schools? Is It close to shopping or freeways? Does it have a large kitchen or that big backyard complete with a swimming pool and a big cedar deck for Sunday barbeque’s?
But yet, when it comes to finding the best deal for a mortgage loan, you will most often just take what is offered to you by the lending institutions, rather than securing the best possible mortgage for your particular situation.
So when you take into consideration that the average Canadian homeowner will pay out more in interest payments over the lifetime of their mortgage loan than what the home originally cost, it is vital to do your due diligence and research on securing the best mortgage deal before you shop for a house. This step could save you thousands and thousands of dollars in interest payments over the 20, 25 or 30 year term of the mortgage loan.
Fortunately researching for the best Canadian mortgage loan, as well as repayment options that are currently available can be found on the internet. Thus making this grueling process a lot more efficient and relaxing for you.
All Mortgages Are Not The Same
So What Is A Fixed Rate Mortgage
Adjustable rate mortgages or variable rate mortgages can be an attractive option as the rates are often lower than fixed rate mortgages. They are an excellent choice for borrowers who are aware of rate fluctuations and are prepared to ‘lock in’ their mortgage loan before interest rates start rising. If you are aware or constantly monitoring the money markets, this type of mortgage may be the best deal you.
What Is A Balloon Mortgage
Balloon mortgages are popular in the US for homeowners who are not planning on staying in their newly purchased home for more than 5 years. This is because the balloon mortgage interest rate is lower then a “fixed rate mortgage”. But if you decide to remain in the home for longer than the 5 to 7 year term, you would then have to secure a new mortgage to pay off the existing balloon mortgage.
What Is A High Ratio Mortgage
Now that you are aware of the different types of mortgages available to you, and might suit you the best, you will then need to consider the two repayment methods available to you:
1.) Interest Only
2.) Principal and Interest
Use Lenders Direct In Canada And Get The Mortgage Lenders To Compete With Each Other