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Choosing a mortgage: considerations beyond a great rate

Choosing a mortgage: considerations beyond a great rate

 A message from KarlyWager, SCCU Mortgages

A message from KarlyWager, SCCU Mortgages

Whether you are purchasing a new home or leveraging the equity in your existing home, the features associated with your mortgage are important considerations. As appealing as a low mortgage rate can be, conditions that go along with that low rate can impact your options in the future. The key is being aware of these conditions so you can choose a mortgage that’s right for you. Considerations may include:

CMHC-Eligible: Does it allow you to take advantage of Canada Mortgage and Housing Corporation (CMHC) financing, enabling home buyers to put as little as five per cent down on their home.

Amortization Term: The flexibility of choosing a longer term can free up cash flow, make monthly payments more manageable, and help you qualify for a higher purchase price.

Owner or Tenant-Occupied: Should you decide to lease out your home in full or in part, you may wish to ensure your mortgage allows for this flexibility.

Annual Pre-payment Option: This allows you to pay down your mortgage faster by contributing a lump sum annually in addition to your scheduled payments. This prepayment amount can vary between 10 per cent and 20 per cent, an important consideration should you receive an inheritance or sell an asset during the mortgage term and wish to dedicate these funds to paying down your debt.

Skip-a-Payment Feature This can be a helpful feature should the unexpected arise such as sickness, death, temporary job loss, or unplanned but necessary home repairs.

Early Pay-Out Option: Early Pay-Out optionmeans that you may pay off your mortgage at any time, allowing you to keep your options open should you wish to consider taking advantage of other mortgage offers or need to refinance.

Home Equity Lending: Some mortgages offer a built-in feature; as you pay down your mortgage, your equity may be leveraged without additional legal fees, and conveniently form part of your overall financial plan.

To learn more, visit us at booth 44 at the CCBA Home and Cottage Show!

Karly Wager, Mobile Mortgage Advisor Sunshine Coast Credit Union

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