Securing a mortgage for the first time can be vary baffling, and the sheer variety of mortgages available can make the process seem even more difficult. There are literally dozens of different types of mortgages that an individual or a couple (or a family for that matter, and you see how things get complicated quickly!) can apply for. Each type of mortgage means something different, in terms of the money you will pay for your house in the short and long term, the impact it will have on your bank account and credit record, and the terms of payment as well. Whether you're buying a condo or a townhome, there are hundreds of options when looking at mortgages.
In this section, we want to take a really close look at the different types of mortgages there are out there and then give you an idea, in easy to understand terms, of what they mean to the individual buyer. A mortgage is probably the most expensive loan you will ever take out, you will most likely be paying for your condo, for the next few decades. So, it is vital to understand the range of options that you have when it comes to securing your first one.
Right away, some of you might be wondering what we are heading at when we talk about the number of different mortgages. It is more than likely that on the advice of an estate agent, in Toronto or otherwise, or a mortgage broker only a limited number of mortgage options have been made clear (and were they clear?) to you. The fact is that there are many more types of mortgage than can be covered in a simple hour meeting with a broker, no matter how well informed. Moreover, this type of consultant will generally go with established patterns formed on the typical buyer. It might be that you are inherently a risk taker, or that you prefer a lot more control over your mortgage terms than the standard types will offer. In these cases, you need to know what options are available to you.
And that is why we have this section of the site. Are you the type of person who balks at the idea of being penalized because you pay back money quicker than expected? Been saving for years and need to know how this can help you with your payment terms? You will find the answers here, along with practical facts and figures that can help you determine the best mortgage for you. Most likely, most of the people in a condo building or a new block of real estate have an at least slightly different mortgage package.
Remember, taking out a mortgage will mean that you spend a lot more on your home for sale , for example, than the price tag suggests. Worse, all this money goes to the bank alone; you will never get it back. That's the basic principle you should be applying when it comes to the securing of any mortgage, and it is what many of our analytical style articles will start out with. Within every mortgage there are terms that will directly affect the real price of your home, a price which you may or may not be able to recover when it is time to sell. It is a consideration worth taking into account before you sign.
So, don't be afraid; mortgages are daunting, but there is one out there that is right for you. With the information on mortgage types out there in this section, you can secure a mortgage armed with some good knowledge.