What most Calgary Banks don’t want you to know
The cost of pre-paying your mortgage
The topic that is constantly overlooked by most Calgarians and mortgage consultants is pay out penalties. What kind of mortgage do you want? Almost every person in Calgary will say, “I want a 5 year fixed and I want the best interest rate around”. We respond this way because that’s what we have been trained to ask for. Entering into a 5 year contract is one of the worst things you can do if you know you are going to be refinancing your home in a couple years. A pay out penalty is the term used when you want to end or change your contract with a certain lending institution and re-negotiate with them or move your mortgage to a different bank. To help persuade customers not to re-negotiate or move business to another bank they will charge you a pay out penalty.
Stumble Upon
Del.icio.us
Buzz
Calgary, Remember the mortgage closing costs
Mortgage closing costs Calgarians might be expected to pay
You have spent months saving for a down payment, arranging all you finances, find the perfect home and now the day has come to sign the mortgage documents at the lawyers. These are some extra costs that may be coming.
High Ratio Mortgages in Calgary Alberta
What can high ratio mortgages do for you?
A high ratio mortgage is anything over an 80% loan to value mortgage. Loan to value is the amount you are borrowing compared to what you have put in as collateral of your own money. The less of a down payment the buyer puts down the more risk there is for the banks. So, to protect themselves against the increased risk, lending institutions require buyers with down payments of less than 20 percent to buy default insurance.
