||Ottawa Mortgage 101 - Your 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 life time 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, please call Chad Robinson at (613) 288-5836
or use our Ottawa
Mortgages Directory to find a mortgage
broker or mortgage
bank specialist to help you.
- Mortgages 101 - The Basics
If you're thinking about buying a home or refinancing, learn
the most basic principles about mortgages here.
- Pre Qualifying for Your
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.
- Renting vs Owning
Learn the advantages and disadvantage of renting vs. owning
- Evolution of the Mortgage
Market in Canada
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.
- Fixed and Variable
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.
- Government Housing and
Mortgages in Canada
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.
- Home Renovations and
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 and Mortgages
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.
- Mortgage and Investments
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.
- Mortgage Brokers
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
Mortgage life insurance pays out the balance of the loan
if the mortgage holder becomes critically ill or dies before
the mortgage is full paid.
- Mortgage Payment Options
There are many different mortgages and many different payment
options. Learn more about your options.
- Reverse Mortgages
A reverse mortgage is simply a loan taken out against the
equity that has built up on an Ottawa property.
- Taxes and Your Home Purchase
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.