Mortgage Information

Term vs Amortization
The Mortgage Term describes the period of time until your mortgage becomes due and payable, most range from six months to five years. At the end of a Mortgage Term you have the option to pay off your mortgage, transfer your mortgage to another institution or renew your mortgage with the existing provider.

Mortgage Amortization relates to the period of time over which the mortgage will be paid off. Many borrowers start with a twenty-five year amortization period which means the entire mortgage will be paid off in full after twenty-five years based on the monthly payments and level of interest rates in the initial mortgage.

Variable vs Fixed
A fixed rate mortgage allows you to lock in a specific annual interest rate for a certain period of time, known as the mortgage term.
A variable rate mortgage is based on the Bank’s Prime Rate plus or minus a specified percentage. The annual interest rate changes with the Bank’s Prime Rate.

Down Payment Basics
A mortgage down payment is the amount of money you pay upfront when purchasing a home. Typical down payments range from between 5% and 20% of the home price. Your down payment can come from:
  • Chequing or savings accounts
  • Canada Savings Bonds
  • Guaranteed investment certificates (GICs)
  • Stocks, bonds, and other non-registered investments
  • Tax-Free Savings Account (TFSA)
  • RRSP (under the Home Buyers' Plan)
  • Gifts from family, or
  • Other assets.
The minimum down payment in Canada is at least 5% of the purchase price of the home. If your down payment is less than 20% you will be required to have mortgage default insurance

How a Realator will help sell your property

  • Determine the appropriate market value of your home.
  • Identify outstanding debts and loans.
  • Clearly define your goals for selling your home.
  • Ensure your home is in the best possible condition and presented effectively before going on the market.
  • Advertise your property to ensure a sufficient number of potential buyers are aware of your home.
  • Manage appointments to view your property.
  • Follow-up with potential buyers to maximize your opportunities to sell.
  • Review offers from prospective buyers and ensure a clear understanding of any conditions attached to the offer.
  • Negotiate offers to ensure you are balancing the price to be paid for the home with other important considerations such as closing dates.
  • Accept the most appropriate offer and begin the closing process.
  • Manage all of the appropriate legal documents and paperwork to complete the closing process and ultimately transfer ownership of your home.
  • Deliver your home to the buyer in good, safe, operating, and structurally sound condition.