Whether you are a first-time home buyer or an experienced buyer, getting access to the best mortgage products and rates will help you save thousands of dollars! At GreyPine Capital, we work closely with all major banks, credit unions and private lenders to help all our clients secure the best mortgages.
Shopping for the right mortgage is just as important as shopping for the right home. With our expertise, we take the stress out of shopping for mortgages by doing the “shopping” for you. At the end of our day, we provide you with the best options for your financial future, and of course, our best advice. We make mortgages enjoyable and easy. Think of us as your personal shoppers – with a financial decision so big, you deserve the best.
Buying a home may be the single largest purchase in your life. It is very important to have access to good professional advice to avoid costly mistakes. We’re talking about thousands and thousands of dollars that could be saved if you choose the right mortgage.
Types of Mortgages and Interest Rates
A conventional mortgage is a mortgage loan that is equal to or less than 80% of the property’s value. For example: If the value of a property is $750,000, then a mortgage of $600,000 on the property is called a conventional mortgage.
High Ratio Mortgage
A High Ratio mortgage is when the down payment made is less than 20% of the house price. The minimum down payment required for buying a house is 5%.
For example: If you are buying a house for $750,000 – the minimum down payment required is $37,500.
Therefore, the mortgage of $712,500 on the property is called a high ratio mortgage. Please note that all high ratio mortgages require the buyer to get a mortgage default insurance from CMHC or Genworth.
Fixed Mortgage Interest Rates
A fixed mortgage interest rate is a locked in rate that will not increase for the term of the mortgage. The term of the mortgage can be for 6 months, 1 year, 2 years and up to 10 years.
Variable Mortgage Interest Rates
A variable mortgage interest rate fluctuates based on market conditions but the mortgage payment remains unchanged. Therefore, if rates go up then more interest is deducted from the mortgage payment, if rates fall down, then more principal is deducted from the mortgage payment.
Adjustable Mortgage Interest Rate
With an adjustable rate, both the interest rate and the mortgage payment vary, based on market conditions.
A closed mortgage cannot be paid off before the end of the term. If you decide to pay off the mortgage before the end of the term, then the lender will charge you a penalty. A closed mortgage is a good choice you want a fixed monthly mortgage payment, but it is very inflexible and does not allow you to benefit from falling interest rates.
An open mortgage is flexible. You can pay part of it or the entire amount without any penalties. This mortgage is a good choice for you if you are planning on selling your home in the near future. Most lenders often allow you to convert your open mortgage into a fixed mortgage for a small fee.
Having the wrong mortgage product can cost you thousands of dollars. Paying a large penalty because you sold your house before the mortgage term expires can significantly reduce the equity you have built in your house.
Therefore, do yourselves a favour: call us to book a free consultation to see how we can help you minimise interest and maximise happiness!
Some of our mortgage and lending products are:
- Mortgages for self employed individuals or business owners
- Mortgages for Rental Properties
- Mortgages for Cottages
- Mortgages for individuals earning only commissions
- Mortgages for individuals buying their second home
- Mortgages for individuals with a lot of debt
- Reverse mortgages for seniors and other individuals
- And many more.
Please call us today to book a free consultation!
Important Tips for Purchasing Your Home
Getting your finances in order is the most important step to take before you consider buying a house. Knowing what your current credit rating is, and how you can improve it (if required) is very important. Low credit scores will automatically disqualify you from getting good mortgage rates.
Getting a Mortgage Pre-Approval:
Most realtors will only work with you once they know that you have been pre-approved for a mortgage. Finding out how much mortgage you qualify for will give you a good idea of what your budget is, and will help you focus your search accordingly.
Most people forget about closing costs when buying a property. CMHC recommends putting aside 1.5% to 4% of the purchase price to cover them.
When viewing a property, big cracks in the house are usually signs that a building might not be structurally sound. If you see big cracks around extension joins, bay windows and in the walls of the basement – then it is good idea to call a surveyor to inspect the property.
Size of the rooms
Sometimes home stagers will place small furniture in a room to make it look bigger than its actual size. Imagine setting up your own furniture in the room or try bringing a measuring tape with you.
Face of the house
The direction of the house is important when it comes to how much natural light gets into the house. It is sometimes smart to use the compass app on your smart phone. A south facing home will maximise natural light.
Before you decide to purchase a home always get the house inspected. This is not a thing you would want to give-up to save costs.
Age of the roof
Replacing a roof can be very expensive. An average roof has a life expectancy of 15 to 20 years depending on the materials used. Make sure to inquire about the age of the roof.
The steepness of a lot is quite important than the size of the lot. What good is a large lot when its too steep to walk on?