To answer some of your questions, here are a few handy items to help you make an informed decision.
Q. What mortgage can I afford ?
A. Asking " what mortgage can I afford " is probably the second most important question of all. Getting the best mortgage rate or timing a mortgage before locking into a fixed rate, are important to your savings, but not as important if you lose your home to foreclosure. The type of mortgage is not as important as affordability.
Q. How much of a mortgage can I afford ?
A. CMB has some tools to help you determine and answer the dreaded " how much can I afford for a mortgage in Canada ". Step 1) Make a budget so you can know what your income can afford to pay on monthly bills. Step 2) Calculate your mortgage payment with the help of one of our mortgage agents. Step 3) Review your mortgage options with one of our Mortgage Agents and we help you pick a mortgage. Step 4) Enjoy your home and relax with your unique mortgage, because we have many options for a mortgage approval.
Q. What is equity ?
A. The equity you have in your home is your downpayment on a property purchase, so the mortgage downpayment is equity. Another way to build equity in your home is the growth of the value in your home or property, minus the sum of your total mortgage outstanding. Using real estate to build equity or net worth can be a very satisfying long term strategy to building wealth. Let CMB help your achieve your financial goals, by letting us help you to choose the right mortgage.
Q. What about a bad credit mortgage ?
A. Mortgage approvals for those that can't meet lender or insurer guidelines is one of our specialties, because CMB offers many mortgage products and lenders with easier mortgage approvals. Taking a mortgage application helps your mortgage agent determine possible rates and terms, and we match a product to your profile. Call us today and book your mortgage application meeting.
Q: What are the most important terms of a mortgage ?
A: Borrowers are trying to find the best mortgage rates. Canada mortgage rates are important, but so is the affordability of the mortgage payments, suitability of the mortgage for the clients, and the material risks of the mortgage being selected by the client. The Financial Services Commission of Ontario have a form called Understanding the risks of getting a mortgage and this would be a great opportunity to review it to help you get the right mortgage.
Q: Will the exchange rate or canada prime rate affect the mortgage rates Canada ?
A: Timing the mortgage rate for any professional is and educated guess, based on data, market predictions, and opinions. Mortgage rates may be affected by a number of domestic or international forces. Don't guess when you need to select a mortgage term, and remember that you need to determine your affordability. Completing a budget is the best way to ensure that you can easily meet your monthly mortgage payments. Try calculating what your mortgage payment would be if your interest rate were to go up 1.50% after your maturity to see if that can meet your budget too.
Q: Should I select a fixed rate mortgage or a variable rate mortgage ?
A: Canadian mortgage rates are at their lowest levels in over 70 years. Guessing on when the Canada Prime Rate will increase is impossible to time properly, and so again using a mortgage calculator to determine the monthly payments at rates 1.5% to 2.5% higher may help determine your risk level or comfort level. I can't tell you when mortgage rate will increase, but the interest rates may surely go up one day. Can you sleep at night if rates go up in two years by 2% ? If not, locking in may be something you should consider.