Buying a Property
Homeownership is something many Canadians just like you strive for. It can be a rewarding experience that helps you achieve both personal and financial goals.
If you already own your home, you understand the value and security homeownership brings. Because your home is an investment you're paying off over time, you may have already accrued valuable equity in your property. Often, that equity can be leveraged to improve your home, improve your lifestyle, or help you realize other dreams you may have.
Mortgage Payment Options
When going through the mortgage selection process, payment options, such as payment frequency and amount of down payment required, will most likely be your top priority. Flexibility in your mortgage payment can help you budget your finances better, plan for the future, and make you feel more comfortable overall with your home purchase. Mortgage payments can be made weekly, bi-weekly, semi-monthly, and monthly.
What Pre-payment Options Are Available
A variety of mortgage pre-payment options are available that suit the unique needs of different home buyers. Many mortgages allow you to elect to increase your original mortgage payment amount (principal and interest).
Depending on the mortgage product selected, various pre-payment privileges are available. For example, various closed mortgages allow pre-payment privileges as a percentage (%) of the original mortgage amount to be paid each year without a pre-payment charge.
A mortgage that may be prepaid, in part or in full, during the term without paying a pre-payment charge.
Mortgage Principal, Interest & Other Amounts Payable
When you take out a mortgage on a home, you'll generally have a regular payment automatically deducted from your account that covers all amounts you're required to pay. However, your mortgage payment may consist of several components, such as principal, interest, and property taxes. Let's look at them one at a time.
The mortgage principal is the amount you originally borrowed, less any payments made towards it. This does not include interest, which is calculated on the remaining principal balance and paid with your regular payments.
Mortgage Interest Rate
Generally, mortgage interest comprises a much larger percentage of your regular mortgage payment at the beginning of the life of the mortgage than toward the end.
The property taxes that are based on the official assessment of the market value of your property may be part of your regular mortgage payment. These taxes are ordinarily paid in installments. The lender can hold these payments until they are due as the respective city/municipality will send the bills directly to your lender.
Whether you're considering your first home purchase, leveraging your home equity, buying another home, refinancing your current mortgage, or perhaps wanting to pay down your mortgage faster, I am here to help you realize your dreams.