Only an experienced mortgage broker in Calgary can help you get best rates. Even before you opt for mortgage, learn the various components of mortgage here!

1. Components of a
MORTGAGE
An Insight

2. “The universe of mortgage lending has gotten to the
point where there is a place in it for everybody.”
- Joe Mays

3. All about Mortgage Rates

4. Pre-Approval
Pre-approval process is nothing but more than submitting your financial
information on which the lender’s terms are established.
Pre-approved is just an estimate of how much the lender will loan you and
does not guarantee a loan

5. Principal and Interest
Principal amount is your house’s average purchase price minus your down
payment. In other words, it is the amount loaned out to you initially when
you sign the contract.
Interest is the total amount that will be applied to the principal. It is usually
denoted in percentage.

6. Variable-Rate Mortgage
 In this, the monthly payment remains fixed but the interest rates keeps
fluctuating. Due to this, the payback period can increase or decrease.

7. Fixed-Rate Mortgage
Fixed-rate mortgage is best suited for first-time home buyers as it is less
risky. But, this type of mortgage can be more expensive owing to higher
interest rates.
If you are not sure which type of mortgage to choose, you can opt for hybrid
mortgage rates to suit your needs.

8. Mortgage Default Insurance
 Mortgage Default Insurance comes into play when homebuyers plan to
take high-ratio mortgages. This insurance aims to safeguard the lenders in
case the borrower fails to pay.
 In Calgary, common Mortgage Default Insurance includes Canadian
Mortgage and Housing Corporation (CMHC), Genworth Canada, and
Canada Guaranty.

9. For best mortgage rates, contact a highly experienced mortgage
broker in Calgary - Mortgage360
Ph. : 403 615 6132
Website: www.mortgage360.ca