Being a first-time homebuyer can be an overwhelming process. With countless mortgage options available on the market you might be wondering which option is best for you. Well here at AKAL Mortgages Inc., we have made a list of the most common types of mortgages available in Canada.
Conventional Mortgage Vs. High Ratio Mortgage
A conventional mortgage is where the buyer can borrow a maximum of 80% of the home’s value. This means their down payment has to be at least 20%. If you cannot pay 20% of your down payment then your other option is a high ratio mortgage. Due to the higher risk involved, the borrower will have to obtain mortgage default insurance, which is paid for by the borrow but insures the lender for any potential payment defaults. Contact your Mississauga mortgage broker to figure out your affordability and see which of these two options is best for you.
As your local Mississauga mortgage brokers, our team is always up to date on the current market trends. With an ever-changing market and the new Canadian mortgage rules, it is important to be aware of what you can afford and organise your financial records. As of January 2018, throughout all of Canada, there have been new mortgage rules. These rules mean there will be higher interest rates and a mandatory stress test for all potential homebuyers. Talk with a Mississauga mortgage broker today to know how much they are willing to lend so you know what price range to shop for.
How do I sell my property if I’m a non-resident?
If you’re a non-resident, in order to sell your property you’ll need to partner up with a mortgage broker who is qualified, and whom has lots of experience working with sellers from overseas. The brokers at AKAL Mortgages have years of experience and we’re the right firm for the job.
In Part 2 of this series we covered frequently asked questions surrounding mortgage financing. Now we’ll dive into answering your question about the home buying process, insurance costs and requirements and legalities for your property purchase.