Mortgage Minute: Your Questions Answered

Date Posted: May 19, 2022

Q: What should you do with your amortization?

A: You can choose a 30-year amortization to give you a little more cash flow and flexibility. You can always readjust your payments to pay off your mortgage earlier. Pre-payment privileges allow you to pay more than your scheduled payment which goes directly to paying down the principal.

More info on prepayment privileges here

 

Q: What should you do with your debt when you’re buying a home?

A: You can include some of your debt into the mortgage; however, you need do have at least 5% down payment and your debt can not equal more than the total of the mortgage on your home.

 

Q: What is a HELOC?

A: Some institutions offer a home equity line of credit (HELOC) which his similar to a second mortgage, but the interest is typically a lot lower. This is a great option to do some upgrades and renovations to your home to increase its’ value. There are some fees that come along with it however you typically get a great return on the investment.

More info on HELOCs here

 

Q: What is default insurance relief?

A: Anyone who purchased a home with less than 20% down will have a program called default insurance. Typically referred to as CMHC however, there are 3 default insurers out there. All three have this program for when something impacts your paying of your mortgage. You can contact these insurers which may allow you to get help on your payments for up to 12 months.

More info on mortgage default insurance here

 

For more information, reach out to a Mortgage Broker today!

To watch the full CTV Morning Live segment with Frank Napolitano; click here.