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We Offer Unique Solution For Each Client
At Toronto Mortgage Brokerage we understand that buying a house may be one of the most important decisions in your life. We will help you choose the best mortgage products that suit your needs. Our experts will take the time to assess your situation and needs to get your first, second, or third mortgage approved. Due to the unique needs of different clients, our solutions and services are also unique to every individual. Not only do we offer competitive rates but we also strive to provide excellent customer service.
We Consider All the Circumstances
When purchasing a home it is important to consider a number of different things. Firstly, the cost of the house that you can easily payoff depends on your income. As well, it is vital to be able to accurately estimate in advance how much you will be able to contribute to your mortgage payment, along with other home related expenses over a short or long period of time. Toronto Mortgage Brokerage professionals will take everything into consideration and find the mortgage option that is most suitable for your current and future situation.
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Solutions for Everyone
Every Problem Has A Solution
Even if you find yourself in a situation that may seem unfavorable for lending, such as bad credit, we provide solutions for everyone. These situations also include self-employed buyers, new immigrants, financial issues, and more.
Get Your Free Consultation
If you’re faced with what seems like an obstacle, contact us to get a free consultation. We can help you consolidate your debts, turn your home equity into cash when it is needed, and provide refinancing options. If you have any questions, we will be more than happy to answer any of your questions. Contact us today to get the best residential mortgage!
What to Consider When Comparing Residential Mortgages
Fixed vs Variable Rates
If you value stability over anything else, then a fixed rate mortgage is the way to go. With this mortgage, an interest rate is set according to the prime rate at the time of origination and won’t change, no matter what the markets do. This allows you to confidently plan your financial future without any surprises.
On the other hand, if you want to take advantage of the lower starting rates, the historic outperformance of variable interest rates, and you are willing to take on some extra risk, a variable rate mortgage is a perfectly good option.
Open or Closed
An open mortgage allows you to finish paying your mortgage ahead of your full term. The benefit of doing so is that you will end up paying much less in interest by finishing off your principle early. Depending on your lender and product, there might be certain limits to by how much you can increase your monthly payments or how big a prepayment you can make.
A closed mortgage effectively locks you in for the full agreed upon term when you purchased the mortgage. Some lenders will still allow you to make prepayments or increase your payments; however, there will almost certainly be a prepayment fee or penalty. On the plus side, closed mortgages usually have lower interest rates.
Recently, the down payment requirements for residential mortgages were changed in order to limit the risk of giving out mortgages to lenders and borrowers. Under new requirements, mortgages for all homes below $500,000 require a minimum 5% down while homes between $500,000 and $1 million require a 5% on the initial $500,000 and then 10% on the amount over that.
That means for a $750,00 loan, you will pay 5% on the first $500,000 = $25,000
+ 10% on the remaining $250,000 = $25,000.
The minimum down payment you will have to make is then $50,000.
The higher down payment you can make (which ranges from 5% to 25%), the lower your interest rate will be. It also equates to a higher equity in your home from the start. This equity can be used as leverage for a line of credit or second mortgage.
You need to carefully consider whether you want to an open or closed mortgage when looking at mortgages with different terms. You can find short-term mortgages from 6 months to 5 years and long-term mortgages from 5 to 25 years.
If you opt for a longer, closed mortgage, you will have the lowest regular payments (even with higher interest rates), but you will be locked into your mortgage until your term is up. Shorter mortgages will have higher payments, but you will pay less interest in total.
Don’t Let Anything Stop You From Buying Your Dream Home
If you are worried about whether you can afford your dream home, don’t worry – you probably just need to find a mortgage solution that’s right for you. At Toronto Mortgage Brokerage, we have the variety, the experts, and the belief in our customers dream to help make yours come true.