A Good Mortgage Goes A Long Way
Getting a mortgage is hard, but Premiere Mortgage Centre makes it easy. There’s a lot to consider when choosing the right mortgage, and it can leave you feeling overwhelmed. Rest assured, Premiere is established in every area that an expert would be needed. We know that guiding you through this is not just a nice-to-have, but rather, a necessity. There are a lot of pitfalls when it comes to getting a home, whether you’re a first-time buyer or an investor. Luckily we’re here for you as a ready teammate. There’s more than one kind of mortgage, and there’s more than one kind of person. Needless to say, a good match goes a long way. A good mortgage goes a long way, and Premiere Mortgage Centre is ready to help you find yours.
Multiple types of mortgages?
It may come as a surprise to hear that there is more than one kind of mortgage, but it shouldn’t be. People vary in their needs, so it only makes sense for mortgages to reflect those needs. For example, someone self-employed may not qualify for a conventional mortgage, so they would need a mortgage or a mortgage add-on that would accommodate their needs. Whereas someone that earns a salary and may qualify for a conventional mortgage may not need any different type of mortgage or mortgage add-ons.
Can’t afford the 20% down payment? No problem!
With conventional mortgages, lenders require at least 20% of the total asking price to be paid upfront. For many individuals who can afford a mortgage but not a down payment, this can feel quite daunting. Luckily, there is another option. Lenders usually allow for less than a 20% down payment (and as little as 5%) on one condition. Mortgage default insurance, or mortgage insurance for short. What mortgage insurance does is give the lenders the certainty they need to loan the money. And it provides the borrowers certainty that they will receive the money. With mortgage insurance, premiums are paid upfront or added to the mortgage payments. This is really about getting people into homes, and millions of families have been able to do so through mortgage insurance. Premiere Mortgage Centre is a great place to start looking for a suitable mortgage lender for you.
How to choose the right mortgage
Conventional and High-Ratio Mortgages
There are a few things to consider when it comes to choosing the right mortgage as there are a few different types of mortgages available. The one that suits you best depends on what you can afford every month. Let’s start with what you think of when you think of a mortgage: the conventional mortgage. With this mortgage, the lender lends 80% of the cost of the home provided you put down 20%. With this type of mortgage, you don’t need mortgage insurance, and getting approved is usually easy. I’m sure you’ve heard of people paying less than 20% for their mortgage down payment, even as low as 5%. This is known as the high-ratio mortgage. This type of mortgage helps families and individuals that can’t quite afford 20% of the mortgage as a down payment, but still want a home. However, one must have mortgage insurance or loan insurance in order to do this. Luckily, it’s required by law that Canadian lending institutions offer mortgage and loan insurance.
Pre-Approved and Assumed Mortgages
For those that are more flexible with exactly how much their mortgage can be each month, there is the variable rate mortgage. Variable rate mortgage doesn’t have a fixed interest rate. The payments usually stay the same but the principal or interest is subject to change due to any changes in the financial market. If that sounds stressful for you, there is a pre-approved mortgage, a mortgage that’s pre-approved by the lender for a specific amount. An Assumed mortgage may also be more your style if you prefer to take over someone else’s mortgage, in a similar fashion to a lease takeover. This option is less stressful since the legal fees and appraisal fees are already accounted for.
Open and Closed Mortgages
For people that are expecting to grow financially in the future, then an open mortgage may suit them best. An open mortgage allows the borrower to be able to repay their mortgage in part or in full at any time without any additional penalty costs. The caveat is that open mortgages have higher interest rates because you can make extra payments from time to time, or sell your house. It’s less red tape. Lastly, we have closed mortgages. Closed mortgages do not allow any extra payments and include penalties if you’d like to pay ahead of schedule. Unlike open mortgages, closed mortgages have lower interest rates.
Premiere Mortgage Centre is here to help
At Premiere Mortgage Centre we know that what people want can be very different from person to person. But we know that everyone wants a place to call home, a place to call their own. So why should you be any different? At Premiere Mortgage Centre, we help you get pre-approved for an investment you can afford to keep. We walk you through the mortgages that best suit you, because we know choosing the right mortgage can be difficult. We’ll determine how much you can afford and team you up with a real estate agent that will guide you through the process. From making an offer to getting a home, we do all the heavy lifting. The only lifting you need to do, is to pick up the keys at the end of the process.
