Posted on
November 16/2021By
northwood
Your home is one of your best and biggest assets. However, if you want to access the equity you’ve built up in your property, what is the right way to do it? You may have heard about Home Equity Lines of Credit (HELOC), but are unsure what they are. You may also be wondering if a second mortgage on your home is the best way to use your equity. Let’s look at what each of these mortgage products are and the benefits they offer. HELOC A Home Equity Line of Credit is similar to other lines of credit in that…
Posted on
August 16/2021By
northwood
Not every homebuyer has the same needs, which is why there are different mortgage options. One of those options is whether to get an open or closed mortgage. You’ll need to consider the pros and cons and see what option best fits your needs. An open mortgage is one that you can change at any time – refinance, pay off in full or re-negotiate – without any financial penalties. They are often for terms shorter than five years. A closed mortgage is one that you cannot pay off or change before the end of the term without paying some penalty…
Posted on
August 02/2021By
northwood
In the world of mortgages, there are many options. You can have an open or closed mortgage, fixed or variable interest rates, and high-ratio or low-ratio mortgages. Understanding the difference between your options could save you thousands of dollars over the life of your mortgage. As housing prices rise, more Canadians will likely end up with a high ratio mortgage so it’s important to know exactly what that means. What is a high ratio mortgage? A high ratio mortgage is one where the buyer has a down payment of less than 20 percent of the home’s value. Lenders calculate the…
Posted on
March 15/2021By
northwood
In Canada, homebuyers have a variety of mortgage options, including a high-ratio or a low-ratio mortgage. Understanding the difference can be key to how much you pay for your home over the long term. What is a high-ratio mortgage? A high-ratio mortgage is one where the buyer pays less than 20 percent of the purchase price of the home as a down payment. It is called a high-ratio mortgage because of the difference between the mortgage amount and the purchase price, also called the loan-to-value ratio. A low-ratio mortgage is one where the buyer puts down more than 20 percent…
Posted on
February 15/2021By
northwood
Canadian homebuyers can easily be confused by the number of different options and types of mortgages. In particular, in the banking industry, there are mortgages that are called conventional mortgages, which are different from high-ratio mortgages. What type of mortgage is best for you and which one you qualify for depends on your down payment and how much you are going to borrow to buy your home. Because of the variety of options, it is important to talk to a mortgage specialist who can help you decide the best loan for you. A Conventional Mortgage Homebuyers who are paying 20…
