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For most people, a home purchase is one of the biggest transactions of their life, so it’s important to get the right mortgage for your situation. Whether you are looking for a first mortgage or a mortgage refinancing, we can help connect you with the best mortgage providers in Canada. At Smarter Loans, all companies we deal with have been reviewed and approved by a panel of industry experts, so that you know you are in good hands when you deal with them. Even if you have less than perfect credit, our partners can help you obtain a great mortgage with easy approval. Check out the list of providers below, or apply here so that we can connect you with the best mortgage provider for your situation.
We can help connect you with the top mortgage providers in Canada.
A mortgage is a loan you can use to purchase real estate. When you take out a mortgage with a lender, you’re entering into a legal agreement to borrow money in exchange for the lender taking title of your property.
In order for your mortgage to be approved, you’ll need to satisfy various lender conditions. Common conditions include providing income documents (T4’s, notices of assessment, job letters, etc.), down payment documents (bank and investment statements) and getting a satisfactory appraisal (often at your own expense). Once all the lender conditions have been signed off on, then your mortgage should be approved.
Before your mortgage funds, you’ll need to choose your mortgage payment frequency. Every lender offers different payment frequencies, but the most common ones are weekly, biweekly, semi-monthly and monthly.
Most lenders give you the option of accelerated versus non-accelerated payments. Accelerated payments as the name suggests means you’re paying off your mortgage faster. When you make accelerated payments, although you’re making the same number of payments, you’re saving interest because your mortgage payments are slightly higher versus non-accelerated. (You’re paying the equivalent of 13 months of interest instead of only 12 months.)
To better understand how your mortgage payments are calculated, it helps to look at your amortization schedule (a table that your lender should provide you with that summarizes your mortgage payments). You pay the most interest when you initially take out your mortgage. Depending on the size of your mortgage and the interest rate, it’s quite possible that over half of each mortgage payment will go towards interest at the beginning. As you pay down your mortgage, more of your money will go towards principal. The amount going towards principal will finally outweighs the amount going towards interest before you pay it off entirely.
Running into tough financial times? If you fail to repay your mortgage according to its terms, you could face penalties, such as fees, legal action and in a worst case scenario foreclosure or a power of sale. It’s best to be proactive and contact your lender ahead of time and work out an arrangement to avoid an unpleasant situation like this.
There’s a lot to a mortgage than simply finding the lowest interest rate. While the interest rate matters, here are three other important factors to consider.