Hey {first_name},

When it comes to financing or re-financing your home, it’s important you understand the

process and all your options to get the right mortgage for you.

In determining which mortgage best suits your situation, there are some basic decisions

you’ll need to make:

Type of Mortgage

Conventional mortgage

This is the most common type of mortgage. Your lender will loan you up to 80% of

the purchase price of the property or its appraised value (whichever is lower), and

you have yourself the other 20% as a down payment.

High ratio mortgage

If you don’t have at least a 20% down payment needed to get a conventional

mortgage, a high ratio mortgage can advance you up to 95% of the home’s purchase

price or appraised value. However, you’d be required to purchase mortgage

insurance (not to be confused with home insurance), the amount of which would be

added to your mortgage principal.

Interest Rate

Your mortgage is made up of 2 components: principal and interest. Essentially, interest is

the cost of borrowing money.

You agree on an interest rate with your lender and this rate gets locked in for the

term of the mortgage. A fixe

Fixed-rate

You agree on an interest rate with your lender and this rate gets locked in for the

term of the mortgage. A fixed-rate mortgage is great in an economy where the Bank

of [Canada]’s prime rate is increasing, but undesirable if the going rate is

decreasing.

Variable-rate

Your interest rates fluctuate with the Bank’s prime interest rate. Your monthly

mortgage payment amount stays the same. However, if the prime rate falls, more of

your payment goes towards the principal and less goes towards the interest. If the

interest rate rises, less of your payment goes towards the principal and more goes

towards the interest.

Term and Amortization

A mortgage term is the amount of time a lender will loan you money for – typically from 6

months to 5 years. When the term is up, the remaining amount is payable in full unless you

arrange new financing for another term.

Because few of us can pay off an entire mortgage in even a 5-year term, lenders calculate –

or amortize - the mortgage payments over a much longer time, often as long as 30 years.

They aren’t loaning you the money for a 30-year period; they’re simply calculating the

payment schedule as if it would take you that long to pay back your mortgage. You will

likely renew the mortgage at the end of your term within your amortization period.

Now is it necessary to be fluent in the world of mortgages? Absolutely not! That’s

my realm.

Mortgages come with a plethora of jargon, math, and paperwork that can be overwhelming

to most people.

I provide clarity in areas of confusion to make the process easy and stress-free.

Trust in someone who intimately knows the market. I’ll help explore your options to ensure

you’re getting the perfect mortgage solution for you.

Call me to get a quick and easy mortgage that fits your needs: {{default_phone}}

Happily anticipating your call,

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