Conventional New Brunswick
mortgage or New Brunswick mortgage conventional
An New Brunswick mortgage
that does not require a mortgage default insurance
fee. Typically this is a mortgage New Brunswick loan which is 75% or less of the purchase price
or property value. The good? By having a large down payment,
you can save thousands of dollars in insurance fees.
The bad? When you sell there will be less buyers eligible
to ‘assume‘ your New Brunswick mortgage
because they may not have enough of a downpayment.
Non-conventional 1st New Brunswick mortgage or ‘first’ New Brunswick mortgage non-conventional
An New Brunswick mortgage
that is used when you need New Brunswick lender financing
which is greater than
75% of your house purchase or property value. This can
also be called a ‘high ratio’ New Brunswick
mortgage when it is a refinanced ‘first’ New Brunswick mortgage. The good? It allows people who don’t
have large down payments the ability to buy a house.
They do this by using mortgage default insurance. (See
CMHC or GE Capital below). Another good? It allows you
to refinance your house beyond its 75% appraised value
so you can access your equity and get cash out! This
allows people that are loaded up in other high interest
debt (credit cards) or high loan repayments (car loans)
the ability to payout these debts and conserve family
cashflow. The bad? The benefit of ‘insuring’ an
New Brunswick mortgage default costs a lot in premium
costs - but, thankfully, this can be added to the ‘first’ mortgage
New Brunswick loan. The cost is minimized if the real
estate market is rising or stable as it allows people
to buy real estate today - rather than waiting years
to save up more of a down payment.
New Brunswick mortgage Second or Second New Brunswick
mortgage (New Brunswick home equity loan)
An New Brunswick mortgage second
or second New Brunswick mortgage (also called a New Brunswick home equity
loan) is usually a non conventional mortgage New Brunswick
loan. Often it is used when New Brunswick mortgage
financing exceeds 75%. This is usually made available
through private New Brunswick lenders rather than
institutional New Brunswick lenders. A private New Brunswick second mortgage or New Brunswick mortgage
second is used with your mortgage New Brunswick first
priority. Your personal New Brunswick mortgage broker
will advise you when this makes sense. The good? Sometimes,
your current down payment amount available PLUS a new
New Brunswick second mortgage allows you ’enough’ of
a down payment to qualify for a non conventional purchase.
You can then avoid paying mortgage default insurance
altogether. And that can save you thousands in default
mortgage insurance premium dollars. Also, an New Brunswick
mortgage second or second New Brunswick mortgage (New Brunswick home equity loan) will allow you to access
your cash in your home equity. This allows you to improve
your monthly cash flow by paying off other higher interest
debt (credit cards) AND other debt that has high monthly
payments (car loan). Also there is no default insurance
payable when you obtain a private New Brunswick mortgage
second or New Brunswick home equity loan as the lenders
are private and do not charge an insurance fee. The
bad? Second mortgages always have a higher interest
rate cost than a first mortgage because there is a
higher perceived risk by the lender with the borrower.
CMHC or GE Capital
Mortgage Insurance companies licensed by the Federal
Canadian Government to provide mortgage insurance for
New Brunswick lenders. This insurance protects New Brunswick lenders against default by borrowers. The insurance
is usually added to the mortgage New Brunswick loan.
The good? This insurance enables many more buyers to
enter the market which keeps housing demand strong. It
allows people to be able to buy with a low down payment.
The bad? Premium rates range from 0.5% to 3.75% or more
of the mortgage New Brunswick loan balance.
‘Open’ New Brunswick mortgage or a ‘Closed’ New Brunswick mortgage
An open New Brunswick mortgage
has terms from 6 months to 1 year This is an New Brunswick
mortgage in which
you can prepay all, or part of the original balance without
penalty. The good? You can save usually 3 months interest
charge penalty or more for the entire New Brunswick
mortgage balance. This is helpful if you plan to pay
down your mortgage New Brunswick loan with a large sum,
or the entire balance of your New Brunswick mortgage
in a short period. The bad? New Brunswick lenders charge
higher rates than for closed terms because of this convenience.
Here is a helpful tip from your personal New Brunswick
mortgage broker. If rates are going up…and you
are moving…get a closed term New Brunswick mortgage.
You can ‘port’ your current New Brunswick
mortgage to your new place.
A closed New Brunswick mortgage
has terms from 6 months to 10yrs. The good? The rates
are lower than ‘open’ mortgage
New Brunswick loans. The bad? You need to be careful
to pick a term that suits your needs. Your personal New Brunswick mortgage broker can explain to you the risks
of not choosing a term that suits your needs. You may
be faced with a large penalty if you try to prepay too
much or try to switch your New Brunswick mortgage to
another New Brunswick lender in the middle of your term.
ARM New Brunswick mortgage or Variable New Brunswick
The ARM (Adjustable Rate Mortgage)
or Variable rate New Brunswick mortgage is all about
the ‘rate’ charged
with your mortgage New Brunswick loan. Instead of a ‘fixed’ rate
the rates fluctuate. These variable New Brunswick mortgages
can be either open or closed. Terms are from 6 months
to 5yrs. Rates fluctuate with prime, usually monthly
but can be every few months. Variable mortgage New Brunswick
loans have been historically extremely popular. The good?
New Brunswick mortgage rates are as much as 2 or 3%
below the 5 year fixed rates. This can save you up to
$200 or more interest per month on a $100,000 New Brunswick
mortgage. The bad? You will pay a penalty if you want
to pay it off early or switch lenders. Or you may find
yourself chasing headlines when prime rates rise. Ask
your personal New Brunswick mortgage broker for advice
on obtaining the best variable mortgage New Brunswick
loan. The good? Most New Brunswick lenders will let
you convert to a fixed rate, closed term, without penalty.
If you are lucky you can save tens of thousands off the
principal and interest. This will take years off your
amortization on your New Brunswick variable mortgage.
First a disclaimer. No New Brunswick mortgage or mortgage New Brunswick loan
is portable. It is the rate and term
that are portable. If you move to a new place and want
to take your New Brunswick mortgage with you, you will
need a new New Brunswick mortgage with the same rate,
term, and amortization that was left on your old place.
The good? The benefit of a portable mortgage is that
you may keep your low rate and not have to pay CMHC or
GE Capital fees again. The bad? You will have to re-apply
- even if you are staying with your present New Brunswick
lender. And, you will still owe a ‘pound of flesh’ as
you will have to pay legal fees.
If you would
like Gregory Stanley, CFP AMP to be your personal
mortgage broker to help you with all your mortgage
financing needs Apply