No two homes are alike. For this reason you will need to have your new home appraised before the lender approves your mortgage loan. So, what exactly is an appraisal? An appraisal is a judgment of worth by a professional. The appraiser will visit your home and inspect the size, condition, quality and function. The appraiser will then produce a detailed report using comparisons to the sale prices of similar homes in the area, determining the value of your home. Continue reading →
You may have heard the word “amortization” thrown around in the financial world. The definition of amortization is the act of paying off debt in regular installments over a period of time. It applies directly to your mortgage! Why you ask? Simple, because the amortization of a mortgage refers to the total number of years required to pay back the entire borrowed amount.
Until recently, in Canada, the longest amortization period on a mortgage was 25 years. Now, some lenders offer an amortization of up to 40 years. Some people prefer a longer amortization period to ensure smaller mortgage payments. However, it can be to your advantage to choose the shortest amortization that you can afford because in the long run, you will save thousands of dollars in interest. Continue reading →