There is lots to learn to make the shift from renting to homeownership. And there's lots to learn about mortgages and how to reduce its lifetime cost. If you have questions, this page will help find what you need to know about financing and buying a home.
First things first, a mortgage is simply a loan for a property. The mortgage contract is for a certain length of time called the term. Five years is the most popular term for mortgages and easiest to qualify for. At the end of your term, you will need to renew your mortgage contract for another term. This is easy assuming you have paid on time as agreed with the lender and your credit rating is still good.
You keep renewing your mortgage until your house is paid for in full. The time it takes to fully pay off your loan is called the amortization period.
The mortgage rate is the rate of interest you are expected to pay to the lender in compensation for the money that you borrow. Think of it as the rental rate for money. The mortgage rate is dependent on a number of factors such as the amortization period and external economic factors.
If you sell your house or move, you can usually take your mortgage contract with you (port it) to the next house, or cancel it, subject to a penalty.
As licensed professional mortgage brokers, we know exactly what it takes to qualify you for a mortgage and we do more than just get you a great mortgage at a great rate, we will show you the way, too.