So you have decided to start saving up for your first home purchase? Well, rest assured you can still find the funds to purchase your home. We know that it can be overwhelming when trying to decide what to do and where to go. But what is a mortgage? It is a collateral loan taken against a property to be held as security for a predetermined amount. Sound complicated? Not really.
What this means is a bank will lend you the money to purchase your home. This is not really any different than a regular loan however, it is a much larger amount and the property is held as security. Just as when you take a car loan the loan is held against the vehicle, with a mortgage the loan is held against the property.
Unlike a car loan that is paid off quickly a mortgage has two set time frames to it. First is amortization, meaning the lifetime of the loan until it is paid in full. The second is the term, this is the amount of time in which the interest rate is charged at the same rate for a period of time. Typically these terms are 2, 3, 5, 7 and 10 years in length. Each term will have a different interest rate. Some people like the long-term security of a set rate while others prefer to take shorter terms for many different reasons. We can help you determine which option is best for you.
As your mortgage broker, we are here to help you choose the best terms and conditions for your personal situation. You can set out different payment options, pay up options and, terms and conditions. Some lenders even allow you to carry your present mortgage to a new property!! That is what we are here for, to help you decide what terms and conditions are best for you on your own mortgage.
If you’re still asking yourself “what is a mortgage” call Team Jardine today and we can help you out with understanding more about the mortgage world so you will no longer be asking yourself “what is a mortgage”. As your broker, we can access all of the banks and lenders for you! Saving you time, energy and aggravation all the while ensuring you are getting exactly what you wanted!