We must also understand the difference between the duration of the term and the amortization period. Steven said the “normal” amortization period is 25 years, so first-time buyers often choose this period because they are not really aware of other options.

The duration of the term, the “normal” term is 5 years

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For the duration of the term, the “normal” term is 5 years, and will generally be accompanied by a fixed rate. With this term, people can be certain of the size of the mortgage payments in each period (without surprises or fluctuations!).

While these homeowners gain more experience with mortgage rates, they could change at a variable rate in the future – a solution that is often more advantageous.

How can I accumulate an adequate down payment?

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The minimum down payment in Canada is 5% of the sale price of the property. It’s better if you start saving money as soon as possible, but there are also some other options: you can use your RRSP (up to a maximum of $ 25,000) while paying back the amount used in the next 15 years. Also, you can borrow funds from a secured line of credit or receive a gift from a loved one. So first-time buyers often choose this period because they are not really aware of other options.

Choosing the best mortgage product for your specific needs

Choosing the best mortgage product for your specific needs

A mortgage broker can help you by choosing the best mortgage product for your specific needs. He will fill the application, and guide you until you complete the process of obtaining a mortgage! A big thank you from Dulcinea to our friends Steven and Philippe from TNM Mortgage for taking the time to talk to us.

It was really informative! While these homeowners gain more experience with mortgage rates, they could change at a variable rate in the future – a solution that is often more advantageous.