Page 25 - Real Estate Now-Mar/Apr 2022

Mortgage term
The length of time you’re committed to a mortgage rate, lender and associated conditions.
Payment schedule

You can determine your payment schedule from options ranging from weekly to monthly.
Fixed interest rate
This means your interest rate will not change throughout the term of your mortgage loan and neither will the amount
of your principal and interest payments.

Variable interest rate
With a variable rate mortgage, the interest rate can fluctuate with any changes in the prime rate.
Open mortgage

An open mortgage is best suited for those who plan to pay off or prepay their mortgage loan without worrying about
prepayment charges. It allows you the freedom to put prepayments toward the mortgage loan anytime until it is
completely paid off.

Closed mortgage
A closed mortgage provides the option to prepay your mortgage loan each year, up to 15% of the original principal
amount for most lenders.

Taking out a mortgage is a very big decision. Take your time and
consider all of your options carefully with a trusted broker.
“For some people, [buying a home] is probably the biggest
purchase of their lives,” says Kaylniuk. “So you just don’t
want to enter into it lightly.”
Be prepared to spend some time researching your
best mortgage options. You’re going
to have to shop around and you’re
going to have to do some of your
own research as well.

“The more informed you are,
the more confident you’re
going to be in your decision,”
Kaylniuk adds. “My opinion is
always: the more you know, the
better. ■

The article above is for information purposes and is not financial advice or a substitute for financial counsel.

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