What do I need to consider when getting a mortgage in Vancouver?
Amortization: This is the life of your mortgage. Making regular payments, this is how many years it will take to pay off your Vancouver mortgage. The maximum amortization is currently 35 years, however effective March 18th, 2011, the maximum amortization will be 30 years.
Term: The term is length of your mortgage agreement. This is the period of time you & the bank agree to a specific rate, payment (fluctuates with variable) & options. Unless you are planning on moving or selling in under 5 years, most people choose 5 years.
Down Payment: The amount of equity you put into the property at the time of purchase. Currently, the minimum down payment is 5%. For down payments between 5-20%, you are required to purchase mortgage insurance (see below).
Mortgage Insurance (aka: CMHC): Mortgage insurance is required for down payments between 5-20% or amortizations longer than 25 years. View the premiums here.
Options: Mortgage options are just as important when financing Vancouver real estate as having a competitive rate. In many cases, having the right options can save you much more than having the lowest rate. Elements such as lump-sum payments, increased payments, double up payments, etc. are the tools that enable you to become mortgage free, faster.
For a free consultation on what mortgage is right for you, contact Ryan: firstname.lastname@example.org.
Pete ShpakBCom, Associate Broker
Vuppie Real Estate Team
400 - 1286 Homer St Vancouver,
BC V6B 2Y5