how to chose the mortgage plan

[smilingmeng]

New Home Buyers


(1)Pre-Approvals
Important first step. Pre-approve your mortgage. Lock today's rate. If rates decrease, you get the lower rate!

(2)Home Buyer's Plan
First time buyers may borrow a maximum of $20,000.00 from their RRSP account.

(3)BEWARE of the Banker's Mortgage Rates
The rate you are quoted from your bank is not necessarily the best. Find out how we can get you a lower rate!

(4)95% First Mortgage
You can now take equity out of your home WITHOUT taking a second mortgage at higher rates.

 

[dkwan]

Does .5% of a rate is very important? In my eyes, might not be as important.

Yes, I work for the bank. usually bank has a less competitive with many brokers out there. We can see the different of the rate is usually minimal. Then, we might think, what makes a mortgage turns out a real win situation for many clients.

1) Does your mortgage company offer exception period?
2) Does your mortgage company have any other personal finance products?

For annual 20% or 35% prepayment, that can be offer by many banks. So, I don't count for those features. Take a poll, what make you a mortgage decision? Please reply~

 

[smilingmeng]

first, our company can hold the interest rate for 4 monthes and addtional one month extention

second, we only do mortgage and we are totally focus on this field

third, we have zero downpayment plan as well

I only explain the situation inside of my mortgage broker firm, not offensive to any bankers! Hahaha

 

[dkwan]

just friendly chat.

our mortgage specialist can hold up to 1 year(some conditions apply).

we offer other personal finance products other than mortgage.

seems we don't have 0 downpayment yet~

but its good for client to shop around. have fun shopping

 

[smilingmeng]

shopping for a mortgage

Shopping For A Mortgage
Open vs. Closed
With an open mortgage, you can pay off as much of your debt
as you wish, whenever you want, without penalty. This could
allow you to pay off your mortgage more quickly (assuming
you have the cash flow to do so), potentially saving you
thousands of dollars in interest over the long run. If you
want flexibility, an open mortgage can be a good option.


A closed mortgage is one which is for a set term and with
fixed conditions. In some cases, the agreement allows prepayment
although a penalty may be charged. While most
closed mortgages in Canada do offer a range of penaltyfree,
partial pre-payment privileges, options differ between
lenders so make sure to compare. In contrast to an open
mortgage, the interest on a closed mortgage is usually
lower. In a situation where interest rates are rising, it
could be to your advantage to lock in. If your income is
static, and you want the security of guaranteeing your
monthly payments over an extended period, this may be
the choice for you.

 

[smilingmeng]

Fixed Rate vs. Variable Rate

A fixed rate mortgage carries a set interest rate for a specific
period of time (the term of the mortgage). The regular
payment of the principal and interest remains the same
throughout the term. Again the benefit of choosing this
option is that you are protected if interest rates rise.
However, you could lose if they fall.




With a variable rate mortgage (or floating rate), the
interest rate rises and falls from time to time as market
conditions change. An open variable rate mortgage gives
you the flexibility to make unlimited pre-payments or
lock into a fixed term at any time. This type of mortgage
is more popular when interest rates are low.
If interest rates go down, more of your mortgage payment
goes to your principal; and if interest rates go up, less goes
toward your principal. But if interest rates rise dramatically
as they did in the early ’80s, your regular payment may not
cover all of the interest owing. In this case, the unpaid
interest will be added to the principal still owing and this
can erode your equity.

 

[smilingmeng]

Major mortgage mistakes

MISTAKE #1: Choosing the Wrong Mortgage

It is easy to make an error here, if only because there is such a vast selection of mortgage plans from which to choose. Common sense, though, should prevail here. For example, choosing a 30-year mortgage when you plan to retire (and move) in 10 years. Securing a fixed-rate mortgage with high closing costs when you are going to be transferred in 2 1/2 years is another example. Another mistake (potentially a budget-busting one) would be to select an adjustable-rate loan (especially in this historically low interest rate environment) when you don't expect your income to take a large jump in the future. Or,perhaps, the biggest "wrong mortgage" of all--getting a large mortgage when you know that 1 of the 2 incomes needed to support it will be going away in the future.

The key to selecting the right mortgage is to find the loan that fits your personal budget and situation, rather than trying--or worse, hoping--to have your budget and situation magically conform to the mortgage. The road to financial ruin is littered with examples
of buyers who did not do the research necessary to ensure that they selected a mortgage that was a good fit. Take your time, analyze your situation, get several opinions and use your common sense.