![]() ![]() The shorter the term, the higher your monthly payments will be, but you’ll be paying less interest as your mortgage will be paid off faster. The longer your term, the lower your monthly payments will be, but you’ll be paying more interest overall. This flexibility allows individuals to choose the payment plan that works best for their lifestyle and opens up the potential of becoming mortgage free even faster. Homeowners have the choice of paying their mortgage once every month, twice every month, every two weeks, or every week. If you are buying property in Toronto and other large cities, these costs are typically a bit higher as land transfer and municipality property taxes are added and inflated in these areas. On average, closing costs range anywhere between 1.5 to 2.5% of your home purchase price to cover land transfer taxes, PST on CMHC premium, home inspection fees, legal fees, appraisal fees, property tax, property insurance, fire insurance, utility hook-ups, etc. For down payments less than 20%, you may find some additional financial flexibility by avoiding the high ratio mortgage insurance premium, however, for the vast majority of clients, the cost of CMHC Mortgage Loan Insurance is offset by the savings achieved. If you can put 20% down, you can avoid paying high ratio mortgage insurance which is ideal. When buying a home, be prepared to pay a 5% down payment of the property value. Preapproval allows you to lock in an interest rate for a certain period and provides a price range while you shop for a new home. It provides confidence in your ability to retain financing, proves creditworthiness to sellers when buying a home and reduces timelines for a faster, smoother mortgage process. Getting a preapproval should be the first step in any mortgage transaction. Credit scores in Canada average between 300 and 900, but a score of 740+ unlocks the best rates. Having a good credit score will allow you to access multiple options when buying, refinancing, or renewing. To see current mortgage rates for our most popular terms, visit our rates page.
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