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Mortgage Broker TorontoBuying a new home is not an easy process to go through, especially when selecting the best mortgage broker to use. This is one of the most important steps in the process, as finding the best mortgage broker can get you the best rates and most suitable mortgage for your situation. I will try to explain how you can make sure you find the best mortgage broker available for your needs. Ask Friends and Colleagues First, ask friends and colleagues for recommendations. However, it is wise not to rely completely on recommendations from friends, as they may not have found the best mortgage broker themselves. Ask Financial Advisors and Realtors Asking trusted financial advisors and realtors can also be a good way to find the best mortgage broker. Financial advisors and realtors are usually familiar with the local mortgage advisors, and will often have a good idea of the mortgage advisor's reputation. If you are unable to get a personal recommendation for an advisor you feel comfortable with, check with one of the national certification organizations such as the Canadian Association of Accredited Mortgage Professionals, also known as CAAMP. They have lists of member brokers throughout the nation. Do Your Own Due Diligence Ask for your potential broker's credentials and experience in the field. There are many certifications available to brokers, many of which will demonstrate specialized knowledge. In addition, especially if it is your first time buying a home, you want to make sure your broker is experienced and knowledgeable. Be sure that you do your research and due diligence beforehand as well. Remember, most mortgages last for fifteen to thirty years, so this is a decision that will be a part of your life for a long time to come. Not all mortgage brokers are equally knowledgeable about personal finance, so you will need to make sure you understand any potential consequences of a possible loan. Interact with Shortlisted Mortgage Brokers Once you have narrowed down the field to a few potential mortgage brokers, talk to them and make sure you get along with them. You will have to put a large amount of trust in your broker, and it is important that you get along with them. In addition, you should make sure they listen to your needs and keep you informed during every step of the process. Mortgages can be complicated and a small change can have big impacts later on, so be sure you know what is going on. Since selecting a mortgage is one of the biggest financial decisions a person can make, it is critical that you choose the best mortgage broker. With a little bit of research and some careful questions, you can be sure you put your financial future in the right hands.
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Mortgages Sounds pretty silly doesn’t it? Everyone knows what mortgages are, but there are so many different types of mortgages available today it can be hard trying to understand what each one means and the effects each one will have on you financially, or when you come to sell you house or indeed go for re-mortgage. There are two major types of mortgages on the market at present which are: 1. Repayment Mortgages 2. Interest Only Mortgages Here are an explanation of what these types mortgages are: 1. Repayment Mortgages Repayment Mortgages are structured so that monthly payments on these types of mortgages, which will be made up of capital and interest, actually go to pay off the original amount borrowed from the lender as well as the interest on the loan that would be accrued over the mortgage term, by the end of the term. Repayment Mortgages Factors a) Repayment mortgages are clear cut and uncomplicated. b) With repayment mortgages you are guaranteed to pay off the original loan, if all payments are made and kept up with. c) Also a repayment mortgage total amount owed decreases over time as payment are made. e) As we all know interest rates can go up and if in later years they do because with repayment mortgages the capital decreases over time this will not have so much as an effect as with a different mortgage. 2. Interest Only Mortgages Interest Only Mortgages are where you only pay the interest on the mortgage loan to the lender each month. The original mortgage loan amount will remain the same throughout the mortgage term. With these types of mortgages suitable investment need to be made to repay the mortgage loan amount off at the end of the mortgage term. These investments are usually made at the beginning of the mortgage term and they can include Pension Mortgages, Endowment Mortgages, PEP Mortgages, ISA mortgages and so on. With interest only mortgages the amount originally borrowed does not change because you only pay off the capital at the end of the term. This is done by contributing towards the “Repayment Vehicle” in other words the particular type of investment you have chosen which should be able to reap a large enough sum of money that can pay off the loan at the end of the term. Interest Only Mortgages Factors a) Investments that have been chosen on interest only mortgages are not guaranteed to appreciate, so there is certain amount of risk involved with interest only mortgages. b) If the investment you have chosen does not provide as good return a was expected, it may not cover the mortgage loan. This then means the onus is on you to ensure you can repay the loan at the end of the term. c) Interest Only Mortgages do mean however that the investments associated with these mortgages are portable meaning that you can keep the investment, add to them and / or link them to a new mortgage. e) You will need to repay the original amount owed.With interest only mortgages the original loan amount never goes down. For more information on how an Interest Only Mortgage would suit you contact one of our advisors today.