MORTGAGE FAQS
Your Questions Answered
WHAT IS A REVERSE MORTGAGE?
Everyone knows that with a regular mortgage you have a monthly payment that needs to be made. With the reverse option you won’t make any payment but will instead get a payment sent to you.
You are basically turning the equity that is in your home into cash that you can use for whatever you want to use it for.
To help you better understand more about this and to provide you with a clear picture, you need to know some important facts about Reverse Mortgages. Here are the most essential facts that you need to be aware of to determine if this can benefit you or anyone else you know, but it is suggested that you speak with a licensed Mortgage Broker for the full details.
SHOULD I GET A FIXED RATE OR VARIABLE RATE MORTGAGE?
You need to know the pros and cons of fixed vs. variable mortgage rates! This will help you decide which mortgage type is the best answer for your mortgage needs.
Scroll down to get your answers.
WHAT IS A FIXED RATE MORTGAGE?
A fixed rate mortgage means your interest rates and payments are set for the duration of your mortgage.
Fixed rate mortgages offer stability and makes budgeting for your mortgage much easier, but you may end up paying more over the course of your mortgage
WHAT IS A VARIABLE RATE MORTGAGE?
A variable rate mortgage fluctuates with the market interest rate, also known as the "prime rate". Your payments will either change alongside the market rates, or the interest portion of your payments will vary.
With variable rate mortgages, there is always a level of uncertainty about your rates and how much you will be paying, however history shows that variable rate mortgages tend to be less expensive over time.
WHEN SHOULD I REFINANCE?
Canadians today have many reasons to refinance their mortgage. For example, you may have been working at improving your credit score and now qualify for a new mortgage with a better discount, or you may want to stabilize your payments by changing from a variable rate mortgage to a fixed-rate. Refinancing is also a good option to pull out equity for consolidating debt, home improvements, investments, college expenses, and more.
A great mortgage broker will also help you understand the long-term effects of each refinance mortgage option, so that you will not have “buyer’s remorse” down the road.
WHAT IS AN INSURABLE MORTGAGE?
Insurable mortgages are also default insured, with the difference being that the lender pays the insurance premium.Lenders buy this insurance (a.k.a. “bulk insurance”) in order to lower their risk and/or securitize their mortgages (i.e., sell them to investors). This lowers their funding costs and lets them pass along better rates to consumers—but not as good as the insured high ratio mortgage
CONTACT ME
Mortgage One Solutions Ltd
Broker Lic# 10842 Administrator Lic# 12318
5757 Kennedy Rd Mississauga ON
