Today let’s talk about mortgages in Canada – one of the most important aspects of purchasing a home. Before you sign on the dotted line, there are five things you should know about mortgages in Canada.
5 Things to Remember About Mortgages in Canada
1. Mortgages in Canada can be either fixed or variable rate. Fixed rates offer stability and predictability as your payments will remain consistent throughout the term of your mortgage. Variable rates tend to start off lower than fixed rates but they can fluctuate depending on market conditions which may affect your monthly payments.
2. Your down payment affects the size of your loan and interest rate. The more money you are able to put down upfront, the less risk for lenders and thus a better interest rate may be offered to you.
3. Mortgage insurance is mandatory for all mortgages in Canada if you have a down payment of less than 20%. It helps protect the lender from losses in case you are unable to make your payments.
4. Your amortization period determines how long it will take you to pay off your mortgage loan. A longer amortization period means smaller monthly payments but more interest paid over time, while a shorter amortization period means higher monthly payments with less overall interest paid over time.
5. Prepayment privileges typically come with mortgages in Canada allowing you to make extra payments or lump sum payments towards your mortgage loan balance. This is a great way to pay off your loan faster and save on interest costs in the long run.
Mortgages in Regina: Call Us
Knowing these five key points about mortgages in Canada will help ensure that you are making an informed decision when it comes to financing the purchase of your home. Be sure to do your research and ask questions so you can secure the best rate and payment structure for yourself.
Of course, we’re here to help too! Call City Centre Mortgages today for mortgage services in Regina and across Saskatchewan.