Posted on
January 13/2020By
northwood
For Canadian borrowers, when the Bank of Canada (BoC) adheres to a resolute policy rate, it seems nothing short of advantageous. With this in mind, it’s imperative to establish what this authentically represents. High-interest rates are indicative of a healthy and robust economy, whereas lower fees are an incentive to stimulate spending in what is a more inefficient fiscal climate. It’s all about power. For over a year, the Bank of Canada has retained its key interest rate on hold, telling of a unique mortgage narrative that affects you. Canada, unlike its international counterparts, has been tenacious by taking fiscal control and keeping interest rates on hold. Intensified trade disaccord between the United States and China, as well as low global interest rates, have spawned ambivalence, creating a burden on the global economy. The U.S. is a crucial export market for Canadian goods and thus consequently affecting not merely our…
Posted on
January 06/2020By
northwood
Although mortgage translations are less than obvious, it’s palpable that most Canadians demand an elevated level of clarification when it comes to the pivotal commitment. A genuine comprehension of mortgage systems is trying enough, and when combined with deciphering a plethora of terminology, the task to many seems daunting. One strong example is distinguishing conforming loans from non-conforming loans. Getting it straight, once and for all, is vital. Conforming Loans A conforming loan is indicative of loan limit restrictions and, simultaneously, a number of unique preconditions are enforced. The Federal National Mortgage Association (FNMA or Fannie Mae) and Federal Home Loan Mortgage Corporation (FHLMC or Freddie Mac) are government-sponsored entities that prompt and administer the market for home loans. These agencies have definitive protocols and decrees that mortgages must observe. Statutes describe and define maximum loan amounts, advisable properties, preconditions for down payments, and credit stipulations to name a few.…
Posted on
December 23/2019By
northwood
Your mortgage term is fundamentally about relationships, both long and short. As with all liaisons, the choice will always depend on individual motives. Although mortgage interest rates seem to receive the highest contemplation concerning home financing products, mortgage terms also manipulate your savings. Appreciating that both are connected is crucial. Before committing to either a long-term or short-term length loan, it’s imperative to analyze both plans to ascertain, which is superior for you. Defining a Term The common fallacy is that a mortgage term stipulates the total length of the mortgage, precisely the amount of time it will take to pay your mortgage in full. On the contrary, that is what is called a mortgage amortization. “Term” actually refers to an agreement that establishes the interest rate, along with other inclusive mortgage features, over a set period. Mortgage terms may range from six months to ten years. Note, however, that…
Posted on
December 16/2019By
northwood
In terms of interest rates, a seemingly mere fraction of a percent can impact your savings over the life of your mortgage loan. For this reason, it’s pivotal to be conscious that your choices will ultimately affect your interest rate. Being able to govern interest rates is not feasible, so being informed is fundamental in determining what’s typically the benchmark as far as the interest percent. Preparing and comparing will conclusively lead you to a choice decision. As a borrower, the interest is an additional payment on top of the principal amount of your loan. It is an annual percentage rate which is either fixed or variable; ultimately, the choice will have a tremendous impact on your mortgage loan. For that reason, it is imperative to discern the variants of the two classifications of interest rates. This knowledge is vital to your overall comprehension of how interest rates function, consequently…
Posted on
December 09/2019By
northwood
Reverse mortgages exalted as a new source of income for baby boomers are far from a choice retirement plan, despite a guaranteed income. It is a financial obligation in which a homeowner relinquishes equity in their home to a reverse mortgage provider, in exchange for regular cash payments, usually to bolster retirement income. Undeniably, taking out a reverse mortgage seems logical for retirees who are house-rich, but cash or cash-flow poor. As with all financial tools, it’s imperative that you are aware there are numerous reasons to justify why using home equity is not a choice plan. The following ten reasons should compel you to analyze your options and the potential consequences of a reverse mortgage. 1. Your loan is capped Your reverse mortgage will be capped at 55 percent of the value of your house. It is dependent on your age, your stake in equity, the appraisal and location…
