Ottawa Living has created the mortgage resource center to help first time home buyers as well as those interested in learning more about mortgages. For many people, your home will be the single largest investment that you'll make in your lifetime but sadly many of us are not well informed about mortgages.
Please feel free to use our Ottawa mortgage resource. If you have additional questions or would like to see if you can prequalify for a mortgage in Ottawa, you can use our Ottawa Mortgages Directory to find a mortgage broker or mortgage bank specialist to help you.
If you're thinking about buying a home or refinancing, learn the most basic principles about mortgages here.
The borrower has provided a mortgage broker or bank with documentation of income, assets, and debts. Additionally, the broker or lending institution has checked the borrower’s credit score with the credit bureaus.
Learn the advantages and disadvantage of renting vs. owning your home.
In the last ten years, mortgages have become much easier to access and more diverse. Local culture is still a factor, so an Ottawa mortgage lender may have slightly different qualifying requirements than one in a neighbouring province.
A fixed mortgage means that the interest rate on the mortgage stays the same for the duration of the mortgage term (whether for one year or ten). With a variable mortgage (also known as a floating rate mortgage), the interest rates change according to fluctuations in the money markets.
The lower monthly payment on a mortgage amortized over 40 years instead of 25 years may be the difference in getting CMHC approval on mortgages.
There are advantages and disadvantages to either method of financing a renovation. When using multiple contractors who will be paid at different times, it may make more sense to use the flexibility of the line of credit; contractors can be paid according to their schedules (so interest is only activated as the money is used) and there is enough cash available to cover any cost overruns.
Interest rates have a direct effect on mortgages. The higher the interest rate, the more expensive the monthly mortgage payment. Because of the debt/income ratio that is one of the determining factors in granting a mortgage loan, higher interest rates lower the amount the lender can grant.
Mortgages are usually the lowest interest loan that a consumer has access to. The combination of the low interest, long-term repayment schedule, and the appreciation in value in the actual property offers a good opportunity for would-be investors.
Historically, only banks lent mortgages but there are now many types of financial institutions that will do so. The increased options for mortgage loans have created the profession of the mortgage broker.
Mortgage life insurance pays out the balance of the loan if the mortgage holder becomes critically ill or dies before the mortgage is fully paid.
There are many different mortgages and many different payment options. Learn more about your options.
A reverse mortgage is simply a loan taken out against the equity that has built up on an Ottawa property.
Anyone purchasing a home in Ottawa will need to budget for the taxes involved. The taxes cannot be rolled into the mortgage, so the purchaser will need to have them set aside.