What is a Mortgage?

Number of options available to suit your needs

The mortgage secures your promise that the money borrowed will be repaid. You also have to promise the lender that you will pay regular interest and you will pay the full amount back after a certain time.

Why a Mortgage?

To fulfil our needs and dreams

In present days a mortgage is almost synonymous with purchase of a home. There can be thousand other reasons you might want to get a mortgage. You may need it for a business, home, school, medical bills and many other variety of reasons and purposes.

Best mortgage rates—Where do I get them?

That is a question all of us asks to ourselves

This is the most common question everyone asks. The answer to this is not very straightforward. There are number of factors which influences your mortgage rate. Also the rates changes very frequently. Be aware of bait and switch. You must do a thorough research before you decide on the product you need, you want.

Fix rate mortgage or variable rate mortgage?

How much risk can you take?

This is another question all of us faces. There is no straightforward answer to this. Your risk tolerance is main factor. Remember—in Canada most of the fixed rate mortgage resets their interest rate after the term. So there is no absolute protection.

Factors which effects mortgage rates and approvals are the following:

• Canada Mortgage and Housing Corporation Act: The act text can be found here.
• CMHC—Canada Mortgage and Housing Corporation. CMHC is serving since 1946.
• Canada Deposit Insurance Corporation (CDIC). CDIC is one of the reasons we don't see much over 5 years mortgages.
• Office of the Superintendent of Financial Institutions (OSFI). OSFI was created through the merger of its two predecessor agencies – the Department of Insurance (DOI) and the Office of the Inspector General of Banks (OIGB).
• Mortgage eligibility requirements as implemented in 2010.
• Bank Of Canada overnight target lending rate and Prime business rate. Go here.

What are people doing

According to a published study by CGA the left side chart tells you what type of loan most Canadians have. According to it 53% of Canadian carry mortgage loan. Also it suggest that 35% people have a mortgage loan even after retirement.

General Mortgage Information

Mortgage Volume

Study 2010

• According to report from TD bank
  “Statistics Canada estimates that the overall housing stock – residential structures plus land – is worth about $2.78 trillion. Of this, about $920Bn was mortgaged as of December 2009. All told, mortgages represent about two-thirds of total household debt in Canada.”.
• Proper Planning and information
  Your plan have to be realistic and practical. Future changes in financial and personal life should be considered. Need and want should be blended in perfect harmony. You would find that in modern financial world mortgage is a tool which can help you take long strides without much discomfort. Also please remember if used improperly then it can cause serious damages. Do you research on-line and don’t forget off-line too. Ask you friends and colleagues also ask you bank. Educate your self before you decide to take up one.