Let me share something related to the mortgages. Seven months back, I had to take a mortgage to build my home. I was in search of the best construction mortgage in Canada
and I didn't know much about mortgages then. But, at the time of approval, I had learned almost everything one should know. And I hope, if I share them, it would be helpful for someone.
Several things are there to be taken care while applying for a mortgage. They are:
1. Rate drop policy which is one of the important things we should know. The pre-approval is for 120 days, and we should be aware of the increase and decrease in the rates and get qualified for the best rate.
2. The factors affecting approval are credit score and employment status. They also want to know the property taxes, maintenance fees, condo fees and real price, etc., before agreeing to lend you the money.
3. Make sure your mortgage is portable.
4. If you want to refinance your mortgage before your term is up, you’ll typically have to pay a penalty of about three months’ interest or an ‘interest rate differential’ — whichever is greater.
5. We should be aware of the rates too. At any time, it is convenient for us to check the “current mortgage rates” to gather the information.
6. And finally, we should decide which product suits the best.
This is only simple points to get noted and hope you would get a better idea on reading the detailed features of each type of mortgage available
. Thank you.