Tag Archives: mortgage qualification

Homeowners’ typical mortgage payments are rising much faster than home prices

Homeowners’ typical mortgage payment is rising much faster than home prices, according to new data from CoreLogic.

The US median sale price has risen by just under 6% over the past year, according to CoreLogic. However, the principal-and-interest mortgage payment on a median-priced home has spiked by nearly 15 percent. And the trend looks set to continue – CoreLogic’s Home Price Index Forecast predicts that home prices will rise 4.7% year over year in August 2019. Mortgage payments, meanwhile, are forecast to have risen more than 11% in the same time period.

One way to measure the impact of inflation, mortgage rates and home prices on affordability is to use the so-called “typical mortgage rate,” CoreLogic said. That’s a mortgage-rate-adjusted monthly payment based on each month’s median US home sale price, calculated using Freddie Mac’s average rate on a 30-year mortgage with a 20% down payment.

“The typical mortgage payment is a good proxy for affordability because it shows the monthly amount that a borrower would have to qualify for to get a mortgage to buy the median-priced US home,” said CoreLogic analyst Andrew LePage.

While the US median sale price in August was up about 5.7% year over year, the typical mortgage payment was up 14.5% because of a neatly 0.7-percentage-point hike in mortgage rates over the time period, LePage said.

Source: Mortgage Professionals America – by Ryan Smith18 Nov 2018

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Credit scores are getting a makeover. Here’s what you should know

Soon, you may be able to have a credit score even if you have no borrowing history and  don't use credit cards.

Soon, you may be able to have a credit score even if you have no borrowing history and don’t use credit cards.

Getty Images

Credit scores are the linchpin of the consumer lending system — and they’re mostly focused on debt.

Banks need to have a way to measure the risk that customers will default on their loans so they can decide whether to lend, how much and at what interest rate. But the main financial behaviour credit scores pick up on is the ability to pay back debt. Usually, it doesn’t matter much whether you’ve never missed rent or have been dutifully squirrelling away money into your savings account.

 

That may be about to change. In the U.S., Fair Isaac Corp. (FICO), creator of North America’s widely used FICO score, is rolling out a so-called UltraFico score based on how cash flows in and out of customers’ chequing, savings and money market accounts. The company is planning to roll out the new score early next year.

By signing up through an app, Americans who agree to data collection from their bank accounts will get an UltraFICO score that could boost their FICO score. That could improve their chances to be approved for a loan or allow them to borrow at cheaper rates.

WATCH: Apps that help Canadians save

The company says seven out of 10 consumers who show average savings of $400 without going into overdraft for three months will see a credit score boost. It also estimates that 15 million consumers who currently don’t have a regular FICO score could get an UltraFICO score. The idea is that this could be a toehold on the credit score ladder for many people.

It isn’t clear how soon the UltraFico score will make it to Canada. Credit bureau Equifax Canada, which uses a number of FICO scores, told Global News it’s “too early to share specific details on new scores.” TransUnion did not return a request for comment.

But others are working on coming up with new ways to calculate customers’ credit default risk.

 

In Ontario, DUCA Credit Union is also trying to develop metrics for lending without using borrowing history.

One of its pilot programs targets Canadians with low credit scores. Through a partnership with fintech startup CacheFlow, the credit union is hoping to be able to lend to those with low credit using their cashflow data.

CacheFlow’s software for financial advisers creates a cashflow plan that, among other things, tells clients how much they can spend every month in order to achieve their savings or debt-repayment goals.

 

Working with Prosper Canada, a financial literacy charity, DUCA plans to offer cheaper loans to CacheFlow users with low credit scores who would normally turn to expensive debt options like payday lenders. The credit union will structure loan repayments according to each individual’s cashflow.

The goal is to lower the share of income that goes to loan repayment and, in the long run, help clients be debt-free or graduate to mainstream lending.

“What you don’t want to do is find a new way to assess credit, only to fill a gap with another loan that’s reused all the time because all you’ve done is put a Band-Aid on a symptom,” DUCA president and CEO Doug Conick told Global News.

 
In a similar vein, the credit union is also focusing on professionals who are newcomers to Canada, where they have no credit history.

It can take some time for, say, a doctor from Southeast Asia to be able to practice in this country. Accreditation is often a complicated and expensive process, said Keith Taylor, executive director of the DUCA Impact Lab, which is spearheading these new lending initiatives.

With no access to credit, foreign-trained professionals often end up getting a low-paying job so they can support their families, Taylor said. And that can significantly delay and sometimes compromise their ability to get Canadian licencing.

 

But is it all good?

Licensed insolvency trustee Doug Hoyes is no fan of the old way of calculating credit scores.

There are some obvious problems with the current system, which “rewards borrowing,” Hoyes said.

For example, current credit rating models recommend borrowers who use a low percentage of what they can take out on revolving credit accounts such as credit cards and lines of credit. This means that someone with three credit cards, each with a $10,000 limit and a $3,000 outstanding balance, may have a better credit score than someone earning the same income who has a $600 balance on one $1,000 card, Hoyes wrote in a blog post.

“That is ridiculous,” he said.

Relying on a record of cash transactions could be a good thing, he added, but the devil is in the details.

 

For one, Hoyes is concerned about privacy.

“This creates a pipeline to your bank account. Is it worth it?”

After all, he noted, credit bureaus have not been immune from data hacks. In 2017, Equifax revealed it had suffered a breach that affected nearly 150 million Americansand over 19,000 Canadians.

The other question is whether a cashflow-based risk rating could also end up encouraging consumers to take out loans they can’t comfortably afford or aren’t able to manage.

Relying on banking information would eliminate the need for people to take out loans they don’t need just so they can build a credit history and work their way up to, say, being able to get a mortgage.

It could also benefit individuals with low credit scores who display financially responsible behaviour.

 

But Hoyes worries they could also encourage some to borrow too much too soon.

For young people and those new to Canada and its financial system, it might not be a bad idea to be able to borrow only small amounts at first.

“If you don’t pay off your $500 credit card, that will rarely be financially fatal,” he said. Missing payments on a mortgage would be a much more serious mistake.

“I can see how (the new system) could help some people but also hurt others,” Hoyes said.

For his part, DUCA’s Conick says he’s determined to stay on the right side of that fork in the road.

“What I don’t want to get us involved in is finding a much better mouse trap to assess risk and provide credit that can be abused,” he said.

Source: Global TV –

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Rent-to-Own Homes: How the Process Works

If you’re like most home buyers, you’ll need a mortgage to finance the purchase of a new house. To qualify, you must have a good credit score and cash for a down payment. Without these, the traditional route to homeownership may not be an option.



There is an alternative, however: a rent-to-own agreement, in which you rent a home for a certain amount of time, with the option to buy it before the lease expires. Rent-to-own agreements consist of two parts: a standard lease agreement and an option to buy. Here’s a rundown of what to watch for and how the rent-to-own process works. It’s more complicated than renting and you’ll need to take extra precautions to protect your interests. Doing so will help you figure out whether the deal is a good choice if you’re looking to buy a home.

You Need to Pay Option Money

In a rent-to-own agreement, you (as the buyer) pay the seller a one-time, usually nonrefundable, upfront fee called the option fee, option money or option consideration. This fee is what gives you the option to buy the house by some date in the future. The option fee is often negotiable, as there’s no standard rate. Still, the fee typically ranges between 2.5% and 7% of the purchase price. In some contracts all or some of the option money can be applied to the eventual purchase price at closing.

Read the Contract Carefully: Lease Option vs. Lease Purchase

It’s important to note that there are different types of rent-to-own contracts, with some being more consumer friendly and flexible than others. Lease-option contracts give you the right – but not the obligation – to buy the home when the lease expires. If you decide not to buy the property at the end of the lease, the option simply expires, and you can walk away without any obligation to continue paying rent or to buy.

Watch out for lease-purchase contracts. With these you could be legally obligated to buy the home at the end of the lease – whether you can afford to or not. To have the option to buy without the obligation, it needs to be a lease-option contract. Because legalese can be challenging to decipher, it’s always a good idea to review the contract with a qualified real estate attorney before signing anything, so you know your rights and exactly what you’re getting into.

Specify the Purchase Price

Rent-to-own agreements should specify when and how the home’s purchase price is determined. In some cases you and the seller will agree on a purchase price when the contract is signed – often at a higher price than the current market value. In other situations the price is determined when the lease expires, based on the property’s then-current market value. Many buyers prefer to “lock in” the purchase price, especially in markets where home prices are trending up.

Know What Your Rent Buys

You’ll pay rent throughout the lease term. The question is whether a portion of each payment is applied to the eventual purchase price. As an example, if you pay $1,200 in rent each month for three years, and 25% of that is credited toward the purchase, you’ll earn a $10,800 rent credit ($1,200 x 0.25 = $300; $300 x 36 months = $10,800). Typically, the rent is slightly higher than the going rate for the area, to make up for the rent credit you receive.But be sure you know what you’re getting for paying that premium.

Maintenance: It May Not Be Like Renting

Depending on the terms of the contract, you may be responsible for maintaining the property and paying for repairs. Usually, this is the landlord’s responsibility so read the fine print of your contract carefully.  Because sellers are ultimately responsible for any homeowner association fees, taxes and insurance (it’s still their house, after all), they typically choose to cover these costs. Either way you’ll need a renter’s insurance policy to cover losses to personal property and provide liability coverage if someone is injured while in the home or if you accidentally injure someone.

Be sure that maintenance and repair requirements are clearly stated in the contract (ask your attorney to explain your responsibilities). Maintaining the property – e.g., mowing the lawn, raking the leaves and cleaning out the gutters – is very different from replacing a damaged roof or bringing the electric up to code. Whether you’ll be responsible for everything or just mowing the lawn, have the home inspected, order an appraisal and make sure the property taxes are up to date before signing anything.

Buying the Property

What happens when the contract ends depends partly on which type of agreement you signed. If you have a lease-option contract and want to buy the property, you’ll probably need to obtain a mortgage (or other financing) in order to pay the seller in full. Conversely, if you decide not to buy the house – or are unable to secure financing by the end of the lease term – the option expires and you move out of the home, just as if you were renting any other property. You’ll likely forfeit any money paid up to that point, including the option money and any rent credit earned, but you won’t be under any obligation to continue renting or to buy the home.

If you have a lease-purchase contract, you may be legally obligated to buy the property when the lease expires. This can be problematic for many reasons, especially if you aren’t able to secure a mortgage. Lease-option contracts are almost always preferable to lease-purchase contracts because they offer more flexibility and you don’t risk getting sued if you are unwilling or unable to buy the home when the lease expires.

Who’s an Ideal Candidate for Rent-to-Own

A rent-to-own agreement can be an excellent option if you’re an aspiring homeowner but aren’t quite ready, financially speaking. These agreements give you the chance to get your finances in order, improve your credit score and save money for a down payment while “locking in” the house you’d like to own. If the option money and/or a percentage of the rent goes toward the purchase price – which they often do – you also get to build some equity.

While rent-to-own agreements have traditionally been geared toward people who can’t qualify for conforming loans, there’s a second group of candidates who have been largely overlooked by the rent-to-own industry: people who can’t get mortgages in pricey, nonconforming loan markets. “In high-cost urban real estate markets, where jumbo [nonconforming] loans are the standard, there is a large demand for a better solution for financially viable, credit-worthy people who can’t get or don’t want a mortgage yet,” says Marjorie Scholtz, founder and CEO of Verbhouse, a San Francisco–based start-up that’s redefining the rent-to-own market.

“As home prices rise and more and more cities are priced out of conforming loan limits and pushed into jumbo loans, the problem shifts from consumers to the home finance industry,” says Scholtz. With strict automatic underwriting guidelines and 20% to 40% down-payment requirements, even financially capable people can have trouble obtaining financing in these markets.

“Anything unusual – in income, for example – tosses good income earners into an ‘outlier’ status because underwriters can’t fit them neatly into a box,” says Scholtz. This includes people who have nontraditional incomes, are self-employed or contract workers, or have unestablished U.S. credit (e.g., foreign nationals) –  and those who simply lack the huge 20% to 40% down payment banks require for nonconforming loans.

High-cost markets are not the obvious place you’ll find rent-to-own properties, which is what makes Verbhouse unusual. But all potential rent-to-own home buyers would benefit from trying to write its consumer-centric features into rent-to-own contracts: The option fee and a portion of each rent payment buy down the purchase price dollar-for-dollar, the rent and purchase price are locked in for up to five years, and participants can build equity and capture market appreciation, even if they decide not to buy. According to Scholtz, participants can “cash out” at the fair market value: Verbhouse sells the home and the participant keeps the market appreciation plus any equity they’ve accumulated through rent “buy-down” payments.

Do Your Homework

Even though you’ll rent before you buy, it’s a good idea to exercise the same due diligence as if you were buying the home outright. If you are considering a rent-to-own property, be sure to:

  • Choose the right terms. Enter a lease-option agreement rather than a lease-purchase agreement.
  • Get help. Hire a qualified real estate attorney to explain the contract and help you understand your rights and obligations. You may want to negotiate some points before signing or avoid the deal if it’s not favorable enough to you.
  • Research the contract. Make sure you understand:
    • the deadlines (what is due when)
    • the option fee and rent payments – and how much of each applies towards the purchase price
    • how the purchase price is determined
    • how to exercise your option to buy (for example, the seller may require you to provide advance notice in writing of your intent to buy)
    • whether pets are allowed
    • who is responsible for maintenance, homeowner association dues, property taxes and the like.
  • Research the home. Order an independent appraisal, obtain a property inspection, make sure the property taxes are up to date and ensure there are no liens on the property.
  • Research the seller. Check the seller’s credit report to look for signs of financial trouble and obtain a title report to see how long the seller has owned it – the longer they’ve owned it and the more equity, the better.
  • Double check. Under which conditions would you lose your option to buy the property? Under some contracts, you lose this right if you are late on just one rent payment or if you fail to notify the seller in writing of your intent to buy.

The Bottom Line

A rent-to-own agreement allows would-be home buyers to move into a house right away, with several years to work on improving their credit scores and/or saving for a down payment before trying to get a mortgage. Of course, certain terms and conditions must be met, in accordance with the rent-to-own agreement. Even if a real estate agent assists with the process, it’s essential to consult a qualified real estate attorney who can clarify the contract and your rights before you sign anything.

Source: Investopedia – Jean Folger Nov. 6, 2018

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Tips to repairing bruised credit

Tips to repairing bruised creditThe importance of a high credit score is, unfortunately, lost on many borrowers, but with a little discipline and dedication, they can get back on track.

Everything from paying extra fees to larger down payments are some of the consequences borrowers with bruised credit contend with, and according to CanWise Financial’s President James Laird, it’s imperative that clients are taught the finer points of responsible payment.

“If it’s not a bankruptcy sheet and not a consumer proposal, we most commonly see borrowers who have balances over their limit, so while it’s somewhat counterintuitive, get a higher limit because it helps your credit score if your spending habits don’t change,” he said. “Someone who spends the exact same amount of money—let’s say $2,200 with a $10,000 limit—you have an excellent score, but if your limit is $2,000 your credit is being severely damaged.”

Speaking of counterintuitive, Laird advises clients trying to rehabilitate their credit not to make payments before the end of the month. If it’s paid too quickly, it’s like the money was never owed in the first place.

credit

“Sometimes we see the most organized people pay off their credit card right before the month turns over, and in that case, credit companies will stop reporting to the bureau,” continued Laird. “If you pay it off the same month you spend it, it’s like you’re not paying any money. Let the month turn over and make your payment during the interest-free period—like within 10 days or whatever you have—because you have to show that you owe a bit and that you’re diligent at making payments. If you pay it off before the end of the month, it’s like you never owed the money.”

In the case of bankrupts, their credit facilities will have been closed down, and Laird recommends getting two new ones that report to the credit bureau so that rehabilitation can begin.

creditscore

“It’s important to get new credit facilities up and going as soon as possible after you’ve had an issue,” said Laird. “We recommend that if someone has gone through bankruptcy or a consumer proposal, they can still get a prepaid VISA, and most of those report to the bureau, and that will start repairing your credit score.”

Daniel Johanis, a Rock Capital Investments broker, always reminds clients with bruised credit that their utilization must be 50-70%.

“If it hits 90% or higher, it’s showing the bank that your ability to repay outstanding debt is challenged because you’re at the point where you’re a higher risk for missing a payment or not meeting your monthly debt obligation.”

For borrowers well on their way to repairing bruised credit but who may have been hit with by an unforeseen, and expensive, circumstance, Johanis recommends making a call to the bank or credit holder.

“Making a simple call and saying ‘I’m behind and I need to get caught up, so can we figure out a repayment plan?’ is surprisingly effective,” he said. “They’ll often work with you because they don’t want you to default. It’s always worth giving the credit holder a call to see if they can do anything. It buys you time.”

Source: MortgageBrokerNews.ca – by Neil Sharma 09 Nov 2018

 

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OSFI to take new measures to address equity-based mortgage loans

The federal regulator plans to address uninsured mortgages granted only on the equity of the property and loans where the lender didn’t apply other ‘prudent underwriting principles’

OSFI is taking measures to tighten the scrutiny of mortgage lending practices.THE CANADIAN PRESS/Sean Kilpatrick

A federal regulator says it will have to take further action to address mortgage approvals by Canadian banks that still depend too much on the amount of equity in a home, and not enough on whether loans can actually be paid back.

The Office of the Superintendent of Financial Institutions telegraphed the move in an update released Monday on the effectiveness of new underwriting rules it announced last year. Those rules included a new “stress test” for uninsured mortgages, where a borrower makes a down payment of 20 per cent or more.

According to OSFI’s October newsletter, the tweaks were needed after the regulator identified possible trouble spots caused by high levels of household debt and “imbalances” in some real estate markets that could have added more risk for banks.

There have been improvements in the quality of new mortgage loans since the revised B-20 guidelines came into effect this past January, OSFI says, “including higher average credit scores and lower average loan-to-value at mortgage origination.”

But even though OSFI said the new rules “are having the desired effect of helping to keep Canada’s financial system strong and resilient,” the regulator claims more work is needed.

“Although reduced, there continues to be evidence of mortgage approvals that over rely on the equity in the property (at the expense of assessing the borrower’s ability to repay the loan),” the newsletter said. “OSFI will be taking steps to ensure this sort of equity lending ceases.”

OSFI spokeswoman Annik Faucher told the Financial Post in an email that the regulator was referring to uninsured mortgages that were granted based only on the equity of the property — the difference between a property’s value and the amount remaining on a borrower’s mortgage for the property — as well as loans where the lender did not necessarily apply the other “prudent underwriting principles” laid out in the B-20 guideline, such as those aimed at proper documentation of income.

“Sound underwriting helps protect lenders and borrowers and supports financial system resilience,” Faucher said. “Having a larger amount of equity in a property does not mean sound underwriting practices and borrower due diligence do not apply.”

She added that OSFI “has a number of tools in its supervisory toolkit, and when we identify potential issues, we intervene and require financial institutions to implement remedial measures that are commensurate to the risk profile of the institution.”

OSFI said in its October newsletter that there are signs “that fewer mortgages are being approved for highly indebted or over-leveraged individuals.” According to the regulator, the amount of uninsured mortgage originations with loan amounts greater than 4.5 times the borrower’s income has dropped from 20 per cent from April to July of 2017 to 14 per cent for the same period of 2018.

In general, the Canadian housing market has cooled following intervention by regulators and various governments. But OSFI also said it realizes that its tighter underwriting rules might cause some would-be homeowners to use less-than-truthful means to obtain mortgages.

“OSFI recognizes that tightened underwriting standards may increase the incentive for some borrowers to misrepresent their income, while it has also become easier to create authentic-looking false documents,” the newsletter said. “Given that the revised B-20 calls for more consistent application of income verification processes, financial institutions need to be even more vigilant in their efforts to detect and prevent income misrepresentation. This is particularly important for financial institutions that depend on third-party distribution channels.”

Source: Financial Post – Geoff Zochodne October 9, 2018

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Starting today, self-employed Canadians have a better shot of qualifying for a mortgage

Photo: James Bombales

It’s long been an accepted fact that self-employed Canadians have difficulty qualifying for mortgages. But that could be able to change, now that new lending rules are in place.

Starting today, new guidelines from Canada Mortgage and Housing Corp. (CMHC) will make it easier for anyone who has been self-employed for less than two years to qualify for a mortgage. The new rules will ask lenders to consider additional factors in their decision-making process, such as predictable earnings, cash reserves and education.

“Self-employed Canadians represent a significant part of the Canadian workforce,” writes CMHC chief commercial officer Romy Bowers, in a statement. “These policy changes respond to that reality by making it easier for self-employed borrowers to obtain CMHC mortgage loan insurance and benefit from competitive interest rates.”

Roughly 15 per cent of Canadians identify as self-employed, according to CMHC data, and the agency predicts that the number will increase as the “gig economy” continues to grow.

Approved lenders, including the country’s big banks, are under no strict obligation to observe the new guidelines, though it is likely that each will take their own approach to the new rules, according to CMHC spokesperson Audrey-Anne Coulombe.

“Implementation of CMHC guidelines may vary among lenders,” she tells Livabl. “These new guidelines are meant to be principle based and not to be too prescriptive to provide maximum flexibility for lenders.”
She adds that the overall objective of the rules was to provide additional guidance to self-employed Canadians looking to qualify for a mortgage.

“These policy changes will make it easier for self-employed borrowers to obtain CMHC mortgage loan insurance and benefit from competitive interest rates,” she shares.

Source: livabl.com –  

 

 

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5 questions every first-time homebuyer should ask their mortgage advisor

MortgageAdvisor1

Photos: James Bombales

Between considering mortgage terms and insurance to viewing properties with your realtor, buying your first home is a busy and stressful time. And when you’re talking about the biggest financial commitment you’ll probably make in your life, it can be pretty intimidating too. While there are mortgage professionals available to provide advice on your home purchase and help find the best mortgage solution for your specific situation, you’ll still need to go into the meeting with your advisor prepared with questions. So even if you’re totally mystified by the mortgage process, these five questions will help set you on the right track.

1. How do I know if I’m ready to buy a home?

“Knowing if you’re ready to buy a home could mean a lot of things and ultimately depends on the person’s own situation,” Wan Li, Mortgage Specialist at TD Group Financial Services, tells Livabl. “Potential homebuyers need to consider how much they’ve saved up for a downpayment, whether they have stable, continuous income and if they anticipate any large purchases or major life events in the future.”

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2. What factors determine my eligibility for a mortgage loan?

Unless you’re rolling in cash, most homebuyers will need to apply for a loan from a bank or mortgage broker. However, whether or not you’ll be approved for a loan and the amount you’re eligible for depend on many factors.

“Even if you have a large down payment and have cash available, a bank will not lend you money without a job and stable income.” says Li. “It’s also better if you’ve worked for the same company for over half a year or at least have passed your probation period.”

Your credit rating is another important factor that can mean the difference between getting approved or denied for your loan. Credit scores range from 300 to 900 and are affected by late payments and debt level. The higher your score, the better chance of being considered for a mortgage.

“Ideally, you’ll want to have a credit score of at least 600 to be approved by a bank,” explains Li. “Any less and you’ll likely need to go to a private B-lender which aren’t as strict, but have higher interest rates and charge administration fees.”

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3. How much do I need for my down payment?

Depending on where you live and the total cost of the home, the minimum down payment you need can vary from 5 per cent to 20 per cent. However, if you have less than 20 per cent, you’re going to have to pay for mortgage insurance which protects your lender in the event that you can’t pay your loan.

“In Canada, those who put less than 20 per cent down will have to pay for the Canada Mortgage and Housing Corporation (CMHC) mortgage loan insurance,” says Li. “It’s typically calculated as a percentage of your mortgage and is added to your regular mortgage payments.”

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4. What does pre-approval mean and should I get pre-approved?

Before you head out and start viewing properties for sale, it’s highly recommended that you first get pre-approved. A mortgage pre-approval will help you determine your maximum budget for your new home and can also give you an edge on the competition should you find yourself in a bidding war. Plus, once you do find your perfect home, you’ll be able to move on it quickly since you know you’re already pre-approved on your finances.

“Getting pre-approved involves filling out a mortgage application and providing documents on your financial history to your bank or lender,” says Li. “The bank will then look at your current income and credit history to determine if you qualify for a mortgage loan. The assessment will usually include a specific term, interest rate and mortgage amount depending on your situation.”

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5. What’s the difference between the term and the amortization?

The mortgage term and amortization period are two common phrases in the homebuying process that often cause confusion for first-time homebuyers. The mortgage term refers to the period of time that you have locked in the agreed upon terms and conditions, including the interest rate and monthly or bi-weekly payments towards your mortgage. Five-year mortgage terms are the most common, however they can range from three to 10 years. By contrast, the amortization period is the total number of years that you choose to pay off your mortgage and can be up to 30 years depending on your down payment.

“If you put less than 20 per cent down, your maximum amortization period is 25 years, but if your down payment is more than 20 per cent, you can have an amortization period of up to 30 years,” says Li. “However, while a longer amortization may result in lower monthly payments, you’re also going to end up paying a lot more in interest.”

Source: Livab.com –  

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