MORTGAGETREE DAVE
                       PROFESSIONAL MORTGAGE ADVISOR

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Family. Trust. Integrity. Honesty.
Buying a home is a big decision. Where do you start? How do you know if you're qualified? How much do you qualify for?
All of these are great questions, and if you're in the market looking for a mortgage, and you don't know where to start, allow me to help. I offer free pre-qualifications with the basic information to help get you going. Whether you're ready to move forward right away, or take time to prepare yourself, the no-hassle service will make sure that you don't feel overwhelmed!
Factors to Consider When Choosing an Agent
There are a few key factors when choosing a mortgage expert that you'd like to work with: Trust - do you feel that the agent has your best interest at heart? 

Honesty - Is your agent going to tell you the things that maybe another broker wouldn't because "they don't want to lose the deal"? 

Integrity - knowing that we've got the highest values for following our moral or ethical convictions and doing the right thing in all circumstances. 

Family - wouldn't you want to know that you're treated the same way we'd offer services to our very own near-and-dear family members? We're a local brokerage owned and operated - focusing on family values.  
Types of Mortgages

Fixed Mortgage

  • A fixed mortgage is exactly how it sounds. It's a fixed rate set for the term you've selected (example - 5 year term) where you'll know exactly how much your ​principle and interest will be paid on each payment. The terms can range from 6 months up to 10 years!! Most fixed rate mortgages will give you the option to make additional payments (called pre-payments) usually in the range of 10%-25% of the original mortgage balance before the end of each year, and always known up front!
  • Should you choose to pay your mortgage off in full (earlier than the term); or if you're looking at selling your existing property but not porting your mortgage you could be subject to an early payoff penalty. There are two typical types of penalties associated with a fixed rate mortgage. It could be either a 3-months simple interest calculation, or an IRD (Interest Rate Differential). The IRD can only be calculated by the lender and can change daily with the update of rates, and the exact amount of days remaining in term. For the 3-months simple interest calculation - it's exactly like it sounds! There's 3 months of interest . So how do you know which one applies to you? Ask me to take a look and review your current mortgage with no obligation or cost!  
  • The key benefit to a fixed mortgage is knowing that your payments remain the same through the whole term. There is never a surprise, and never a change in the rate during that term!

Variable Rate Mortgage

  • A variable rate mortgage (VRM) is a mortgage that varies with the prime rate of the lender. With the low rates of the BOC (Bank of Canada) and lenders offering a lower prime rate, you're able to capitalize on the savings. These terms can also range in length; ranging from 1 to 5 years.
  • The rate is subject to change as the lenders prime rates change. Your payments may possibly go up, and they may possibly go down. This can happen multiple times during the term of your mortgage depending on many variables out of your control. The lenders prime rate is separate from the BOC overnight lending rate, but can often go up or down in coordination with it. 
  • Some lenders provide the option of having your VRM set a fixed payment. In this case, it keeps your payment to remain the same, but allow for more of the payment to be contributed to your principle therefor allowing less to go to the interest. However, should there be a minor increase in rates, then you'd have more of the payment going to interest and less to the principle borrowed value. 
  • The advantages to having a VRM can be that you may experience lower than fixed mortgage rates.  

Open Mortgage

  • An open mortgage... as you guessed it is completely open. This means that you have the flexibility to pay off some or all of the mortgage at your convenience or anytime without penalty. Typically interest rates are higher, but are also tied to the lenders prime rate.
  • The advantages to having an open mortgage means you have full control and disclosure to pay it out with ANY additional penalties.
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