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Mortgage Information

Credit Rating

Your credit rating is a measure of your credit-worthiness or in other words, your record of borrowing and repayment. Without a credit rating, few institutions will lend you money.

Mortgage Basics

A mortgage is a loan that uses a property as security to ensure that the debt is repaid. The borrower is referred to as the mortgagor, the lender as the mortgagee.

Mortgage Features

Fixed term vs. variable. What term should you take? That’s a good question. Before you look at the issue of term specifically, there are things you should consider: When you’re looking at term and interest rates, look also at what you can live with in terms of payment amounts, because trying...

Refinancing, Renewing

Refinancing is the process that pays the existing mortgage and/or any other legal claims against the property and sets-up a completely new mortgage(s).

Rent Versus Owning

We have assembled some tables to allow you to gauge the possibility of purchasing instead of renting. The information is to be used as a guideline only, please send us a message for more specific information.

The Right Home

You have a pretty good idea of the price range you can afford, and now it’s time to fine tune and have everything come together.

Types of Mortgages

Pre-Approved Mortgage, Conventional Mortgage, High-Ratio Mortgage – CMHC / GE Capital Insured, First Mortgages, Open Mortgages, Closed Mortgages, Fixed-Term Mortgages

Things You Should Know About Mortgages

House hunting can be both exciting and stressful and it’s one of the biggest purchases most people make in their lives. When it comes to financing your home or business, Northwood Mortgage™ can answer all your mortgage questions, taking the edge off an exasperating experience.

Whether you are buying your first home, trading up to a larger home, building your dream home, or even trading down once the kids are out on their own, a house is probably the single biggest investment you will ever make.

As almost everyone who is buying a home will need financing, they are also interested and often need guidance on what to look for in a mortgage and how they can pay the least amount of interest over the term of the mortgage.

This site is designed to help answer some of your questions. To let you know how much you can afford to spend and what your payments will be, suggest ways to save thousands in interest over the life of the mortgage, and present the special programs that some borrowers could participate in and save from.

All You Want to Know About Mortgages

Most Canadians looking to purchase a home or other property are only able to pay a fraction of the total purchase price. Fortunately, you can use this amount as a down payment while covering the remaining costs with assistance from a lender in the form of a mortgage loan.

A mortgage is referred to as a legal contract between you (the investor or homebuyer) and your lender (bank or other financial institution). This contract specifies various details of your loan, including your responsibilities as a borrower and your requirements to fulfill the contract.It’s important to review your mortgage documents and other mortgage info carefully, preferably with the aid of your mortgage broker, to avoid any surprises.

In addition, the lending institution will require proof of several conditions when seeking a pre-approval for your mortgage loan, including:

  • Proof of identity (ID)
  • Proof of income
  • Proof of address
  • List of assets and debts
  • Employment history and employer contact details

You should respect the conditions of your mortgage, including paying on time and maintaining the property. The lender is legally authorized to seize your property or other assets used as collateral to secure the loan. When taking a mortgage, you should keep in mind that:

  • The loan is secured by the property itself
  • You must make a down payment
  • You don’t necessarily have to complete your mortgage payment in full by the end of your contract
  • Since you’re likely to have a balance owing at the end of your mortgage term, you will need to renew your contract with the same lender (or another lender) until the balance is paid in full
  • Your mortgage loan amount will be huge, in the hundreds of thousands of dollars
  • Some lenders have qualification requirements such as passing a stress test

Mortgage loans offer numerous benefits for homebuyers and investors, such as:

  • The ability to own a home or property despite bad credit – mortgage loans are secured with the property, which makes them easy to approve
  • No restriction on how you use the loan, giving you the opportunity to remain as the legal owner of your property while using the loan funds for other needs such as medical emergencies, home renovation, business expansion, school fees, and so on
  • Flexible repayment tenures depending on your situation
  • Lower interest on mortgage loans compared to personal loans

Why Northwood Mortgages?

Northwood Mortgage boasts a team of qualified mortgage experts who specialize in finding unique solutions with lower mortgage rates and fast approvals for your mortgage. Seek the help of mortgage brokers who can connect you to the best options for you in your area.

Our brokers will first understand your needs and assess your current situation before searching for the most suitable lender that will offer a competitive quote with the lowest rate and best possible mortgage terms to fund your residential or business mortgage.

  • How is my mortgage amount calculated?

    The amount of money you can borrow from a financial institution for the purchase of your home or other property depends on:

    • The purchase price of the property less your down payment
    • Inclusion of mortgage loan insurance for borrowers who provide a down payment of less than 20%, or instances where it’s required by the lender
  • What is a mortgage term?
    This refers to the length of time that your mortgage contract will be in effect. This may range from a few months to a typical period of 5 years or even longer.
  • How does the mortgage term affect my loan?

    The length of your mortgage term impacts:

    • How soon you will be required to renew your mortgage agreement if you can’t pay the balance in full within the term
    • Your interest rate, as well as the type of interest (variable or fixed) that you get
    • The penalties that apply to you in the event you breach the mortgage contract before your term comes to an end
  • How is a commercial mortgage different from a residential mortgage?

    Generally, the interest rates for commercial mortgages tend to be slightly higher than for residential mortgages, especially if you approach lenders that typically provide residential mortgages, such as banks, trust companies, and credit unions. Fortunately, your Northwood business mortgage broker can help you qualify for a first commercial mortgage with lower interest rates, if it’s insured by a third-party mortgage insurance policy.

    Northwood commercial mortgage brokers can help you navigate the mortgage application process, which requires more documentation compared to a residential mortgage, saving you a lot of time and effort. By leveraging our networks in the industry, our brokers can present you with a variety of commercial and industrial mortgage solutions from a range of favourable commercial mortgage lenders, including custom tailored options that specifically address your needs and goals.

  • What is a mortgage reversal?
    Homebuyers over 62 years old should be provided with mortgage reversal info if they haven’t paid the mortgage loan in full. Mortgage reversal implies that the lender pays you a specific amount every month, instead of you making payments. This is possible by converting some of the equity in your home into cash without selling your home, giving you funds to pay off your mortgage balance, pay for medical expenses, or supplement your income.
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