Credit Rating
Your credit rating is a measure of your credit-worthiness or in other words, your record of borrowing and repayment. Without a credit rating, few institutions will lend you money.
How is my mortgage amount calculated? The amount of money you can borrow from a financial institution for the purchase of your home or other property depends on:
- The purchase price of the property less your down payment
- Inclusion of mortgage loan insurance for borrowers who provide a down payment of less than 20%, or instances where it’s required by the lender
What is a mortgage term? This refers to the length of time that your mortgage contract will be in effect. This may range from a few months to a typical period of 5 years or even longer. How does the mortgage term affect my loan? The length of your mortgage term impacts:
- How soon you will be required to renew your mortgage agreement if you can’t pay the balance in full within the term
- Your interest rate, as well as the type of interest (variable or fixed) that you get
- The penalties that apply to you in the event you breach the mortgage contract before your term comes to an end
How is a commercial mortgage different from a residential mortgage? Generally, the interest rates for commercial mortgages tend to be slightly higher than for residential mortgages, especially if you approach lenders that typically provide residential mortgages, such as banks, trust companies, and credit unions. Fortunately, your Northwood business mortgage broker can help you qualify for a first commercial mortgage with lower interest rates, if it’s insured by a third-party mortgage insurance policy.
Northwood commercial mortgage brokers can help you navigate the mortgage application process, which requires more documentation compared to a residential mortgage, saving you a lot of time and effort. By leveraging our networks in the industry, our brokers can present you with a variety of commercial and industrial mortgage solutions from a range of favourable commercial mortgage lenders, including custom tailored options that specifically address your needs and goals.
What is a mortgage reversal? Homebuyers over 62 years old should be provided with mortgage reversal info if they haven’t paid the mortgage loan in full. Mortgage reversal implies that the lender pays you a specific amount every month, instead of you making payments. This is possible by converting some of the equity in your home into cash without selling your home, giving you funds to pay off your mortgage balance, pay for medical expenses, or supplement your income.
