Frequently Asked Mortgage Payment Questions

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Frequently Asked Mortgage Payment Questions
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• If youre a first-time home buyer, or havent
  sought a loan to buy a property for a good many
  years, you may have some unanswered questions
  about the mortgage payment process below are
  answers to some of the most common questions
• What is a down payment?
• This is the amount you pay upfront to get a
  mortgage, and the minimum that you can pay
  depends upon the purchase price of your property.
  If youre self-employed or have a poor credit
  rating, you may be asked to pay a higher down
  payment. For more details about calculating down
  payments, contact a qualified mortgage specialist
  today.

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• What is amortization?
• This refers to the period of time during which
  you plan to pay off your mortgage, and can vary
  according to your specific situation. The most
  common amortization period in Canada is 25 years
  and works well in the majority of cases.
• What is the term of a mortgage?
• This is the length of time for which you sign a
  legal agreement with your chosen lender, and in
  Canada, the most common length of term is 5
  years. Once the term comes to an end, youll have
  the option of renewing or refinancing your
  mortgage

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• renewing means that you sign another term with
  your existing lender (in which rates may change),
  while refinancing means that you sign a new term
  agreement that may be with a different rate or
  lender.
• What are interest rates?
• The rate of interest defines how much interest is
  added to the portion of your mortgage loan that
  remains unpaid. Your monthly or bi-weekly
  payments will increase with a higher rate of
  interest, and inflate the term and lifetime cost
  of your mortgage, while a lower interest rate can
  save you a lot of money over time.

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• Fixed rate this is guaranteed not to change
  throughout the duration of your mortgage term.
  Variable rate this can change throughout the
  duration of your mortgage term, and is controlled
  by your chosen lender via their prime rate.
  Lenders can opt to increase or decrease their own
  prime rate which goes on to increase or decrease
  your variable rate of interest. Most lenders will
  have a rate of interest that reflects changes to
  the Bank of Canadas policy interest rate.
• Choosing a variable rate may lower the cost of a
  long-term mortgage, but if interest rates rise in
  the future, a fixed rate will work best. For more
  detailed advice about which rate of interest to
  opt for, talk to a qualified mortgage specialist
  or broker.

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• What is payment frequency?
• This determines how often youll make payments on
  your mortgage, and can be done on a monthly (12
  payments per year) or bi-weekly (26 payments per
  year) schedule.
• If you still have unanswered questions about the
  mortgage payment process, or would like to begin
  working to find the best mortgage deal for your
  circumstances, book a consultation with a local,
  qualified, mortgage broker today.

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• Mortgage-broker-Calgary is your best resource for
  finding a mortgage for your property. Luke Wile,
  is the best mortgage broker in calgary and is
  proud to serve clients from across Canada, while
  being centered in Calgary, Alberta. Luke is proud
  to serve his clients with a personalized approach
  to finding his clients the best and lowest
  Canadian interest rates and terms offered by the
  major banks and private lending institutions. If
  you are looking for a mortgage broker in Calgary
  AB, with Luke Wile you can get fast and personal
  expertise for your mortgage!