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Fixed rate mortgages provide certainty but reduce flexibility relative to variable rate mortgages. Most lenders allow porting mortgages to new properties so borrowers can carry forward existing rates and terms. Mortgage portability allows transferring a preexisting mortgage with a new property in some cases. Mortgage lenders review loan-to-value ratios based on property valuations to manage loan exposure risk. Down payment, income, credit history and property value are key criteria assessed in mortgage approval decisions. First-time house buyers shoulder the land transfer tax unlike repeat buyers, but get rebates and exemptions in certain provinces. The Bank of Canada overnight lending rate weighs monetary policy objectives like inflation employment goals determining Prime Rate movements directly impacting variable rate and adjustable rate mortgage costs. Mortgage Value Propositions highlight the financial merits of replacing rental payments with affordable private mortgage installments.
private mortgage lenders default rates have remained relatively steady between 0.20% to 0.25% since 1990 despite economic pros and cons. Mortgage loan insurance protects lenders against default risk on high ratio mortgages. The Emergency Home Buyer's Plan allows first-time buyers to withdraw $35,000 from RRSPs without tax penalties. The mortgage affordability calculator helps compare alternative products determining initial and projected payments across potential terms assisting planning selections suit individual budgets. Mortgages to book properties or cottages generally have to have a minimum 20% advance payment. Mortgage Credit History reflects accumulation present demonstrated responsible management accounts entitled establishing reputable records rewarded preferred rates. Spousal Buyout Mortgages help couples splitting around buy the share of the ex who is moving out. The First Time Home Buyer Incentive reduces monthly private mortgage lending costs without requiring repayment in the shared equity. Self Employed Mortgages require borrowers to deliver additional income verification because of the increased risk for lenders. The First Time Home Buyer Incentive from CMHC provides 5% or 10% shared equity mortgages to qualified buyers.
Defined mortgage terms outline set rate and payment commitments typically ranging two years span decade locked whereas open terms permit rate flexibility any moment functionality favoured sophisticated homeowners mitigating cycles or anticipating moves. The payment insurance premium for high ratio mortgages depends on factors like property type and borrower's equity. Foreign non-resident investors face greater restrictions and higher down payments on Canadian mortgages. Higher monthly payments by doubling up, annual lump sums or increasing amounts will repay mortgages faster. No Income Verification Mortgages feature higher rates given the increased risk from limited income verification. Longer amortizations reduce monthly payments but greatly increase total interest costs on the life of the mortgage. Renewing mortgages greater than 6 months before maturity leads to early discharge penalty fees. First Mortgage Meanings define primary debt obligations take precedence claims against real estate assets over other subordinate loans.
Conventional mortgages require 20% down to prevent costly CMHC insurance premiums added towards the loan amount. Most mortgages feature a yearly prepayment option between 10-20% with the original principal amount. Mortgage features like portability, prepayment options, and renewal terms must be considered not just rates. Mortgage pre-approvals specify a set borrowing amount and secure an monthly interest window. Debt Consolidation Mortgages allow homeowners to roll higher-interest debts like credit cards into their lower-cost mortgage. Bad Credit Mortgages help borrowers with past credit difficulties buy a property despite the greater rates. Second mortgages involve higher rates and charges than firsts on account of their subordinate claim priority inside a default.
