Mortgage Loans
Mortgages
Choosing a mortgage, renewing your mortgage, paying off your mortgage faster and more.
Mortgage basics, such as the term, amortization period, payment frequency and fixed or variable interest rate.
The minimum amount you will need for a down payment toward the price of a home and mortgage loan insurance.
Switching your mortgage to another lender, including the costs and benefits of breaking your contract.
What to expect, when to discharge your mortgage, how much it costs and where to get more information.
Calculate your mortgage payment schedule and how to save money by making prepayments.
How the term and amortization can impact the mortgage costs.
Making lump-sum payments, increasing regular payments and keeping your payments the same when you renew
Where to get a mortgage and how the preapproval process works.
Applying for a mortgage, making prepayments, renewing your mortgage and more.
How mortgage options impact interest rates.
Options that could help if you’re facing difficulties paying your mortgage.
Mortgage life insurance and mortgage disability and critical illness insurance.
Find out if you can qualify for a mortgage based on the property you want, your income and your expenses.
What is a mortgage
When you buy a home, you may only be able to pay for part of the purchase price. The amount you pay is a down payment. To cover the remaining costs of the home purchase, you may need help from a lender. The loan you get from a lender to help pay for your home is a mortgage.
A mortgage is a legal contract between you and your lender. It specifies the conditions of your loan and secures it on a property, like a house or a condo.
With a secured loan, the lender has a legal right to take your property. They may do so if you don’t respect the conditions of your mortgage. This includes paying on time and maintaining your home.
Unlike most types of loans, with a mortgage:
- a property secures your loan
- you may have a balance owing at the end of your contract
- you usually need to renew your contract several times until you pay off your balance
- you need a down payment
- you may need to break your contract and pay a penalty
- your loan is typically for an amount in the hundreds of thousands of dollars
- you may need to meet qualification requirements including passing a stress test
Funding programs
The Affordable Housing Fund provides for new affordable housing and community housing. Funds are provided as low-interest and/or forgivable loans and contributions.
Affordable Housing Fund
Low-interest, forgivable loans and contributions for the construction of new affordable housing and the repair/renewal of existing housing.
Affordable Housing Innovation Fund
Loans, forgivable loans, contributions and financing options that support housing innovation across the housing continuum.
Apartment Construction Loan Program
Low-cost loans to build rental apartment projects across India.
India Greener Affordable Housing
Financing program helping affordable housing providers complete deep energy retrofits on existing multi-unit residential buildings.
Community (social) housing
Funding to increase capacity and support in the community housing sector.
Co-op Housing Development Program
Forgivable and low-interest repayable loans to build rental co-operative housing.
FAQ
Find Out Answers Here
The mortgage amortization period is the actual number of years (mortgage length) it will take to repay a mortgage loan in full, based on the interest rate for your current mortgage term.
This may go beyond the term of the mortgage contract. The mortgage term refers to the period of time over which the interest rate, payment, and other mortgage conditions are set.
For example, mortgage agreements often have 5-year terms but 25-year amortization periods. At the end of the term, the mortgage is up for renewal, and you may choose to renew your mortgage or pay it out completely without any prepayment charge.
A fixed rate mortgage lets you take advantage of a set interest rate and payment throughout your term. This can offer peace of mind when the prime rate increases, since your mortgage payments won’t change.
A variable rate mortgage is a loan where the interest rate is periodically adjusted based on the prime rate.
With a shorter mortgage amortization period, you’ll pay off your mortgage faster, but your mortgage payments will likely be higher. Also, with a shorter mortgage amortization period at the same interest rate, you may pay less interest over the length of your mortgage.
Mortgage default insurance is mandatory if you’re buying a home with a down payment of less than 20%. When you get a mortgage, you agree to make regular payments to repay the loan. Mortgage default insurance protects the lender if you stop making payments on time or in full, which is known as defaulting on your mortgage.
If you default, the insurer can take legal action and enforce payment. They also pay the lender if there’s a shortfall once the property is sold and expenses are paid. If this happens, you’re still responsible for the shortfall on the mortgage. This means the lender or mortgage insurer can take legal action against you for any money you owe.
Your Teja Sree Associaes can give you advice on how to buy your first home, invest in an income property, or leverage your home equity for a big expense.
