Conventional Nova Scotia mortgage
or Nova Scotia mortgage conventional
An Nova Scotia mortgage that
does not require a mortgage default insurance fee.
Typically this is a mortgage Nova
Scotia 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 Nova Scotia mortgage because
they may not have enough of a downpayment.
Non-conventional 1st Nova
Scotia mortgage or ‘first’ Nova
Scotia mortgage non-conventional
An Nova Scotia mortgage that
is used when you need Nova Scotia lender financing
which is greater than 75% of
your house purchase or property value. This can also
be called a ‘high ratio’ Nova Scotia mortgage
when it is a refinanced ‘first’ Nova Scotia
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
Nova Scotia mortgage default costs a lot in premium costs
- but, thankfully, this can be added to the ‘first’ mortgage
Nova Scotia 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.
Nova Scotia mortgage Second or Second Nova Scotia mortgage
(Nova Scotia home equity loan)
An Nova Scotia mortgage second or
second Nova Scotia mortgage (also called a Nova Scotia
home equity loan)
is usually a non conventional mortgage Nova Scotia
loan. Often it is used when Nova Scotia mortgage financing
exceeds 75%. This is usually made available through
private Nova Scotia lenders rather than institutional
Nova Scotia lenders. A private Nova Scotia second mortgage
or Nova Scotia mortgage second is used with your mortgage
Nova Scotia first priority. Your personal Nova Scotia
mortgage broker will advise you when this makes sense.
The good? Sometimes, your current down payment amount
available PLUS a new Nova Scotia 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 Nova Scotia mortgage second
or second Nova Scotia mortgage (Nova Scotia 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 Nova Scotia mortgage second
or Nova Scotia 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
Nova Scotia lenders. This insurance protects Nova Scotia
lenders against default by borrowers. The insurance is
usually added to the mortgage Nova Scotia 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
Nova Scotia loan balance.
‘Open’ Nova Scotia mortgage or a ‘Closed’ Nova
An open Nova Scotia mortgage
has terms from 6 months to 1 year This is an Nova Scotia
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 Nova Scotia mortgage
balance. This is helpful if you plan to pay down your
mortgage Nova Scotia loan with a large sum, or the entire
balance of your Nova Scotia mortgage in a short period.
The bad? Nova Scotia lenders charge higher rates than
for closed terms because of this convenience. Here is
a helpful tip from your personal Nova Scotia mortgage
broker. If rates are going up…and you are moving…get
a closed term Nova Scotia mortgage. You can ‘port’ your
current Nova Scotia mortgage to your new place.
A closed Nova Scotia mortgage
has terms from 6 months to 10yrs. The good? The rates
are lower than ‘open’ mortgage
Nova Scotia loans. The bad? You need to be careful to
pick a term that suits your needs. Your personal Nova
Scotia 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 Nova Scotia mortgage to another
Nova Scotia lender in the middle of your term.
ARM Nova Scotia mortgage or Variable Nova Scotia mortgage
The ARM (Adjustable Rate Mortgage)
or Variable rate Nova Scotia mortgage is all about
the ‘rate’ charged
with your mortgage Nova Scotia loan. Instead of a ‘fixed’ rate
the rates fluctuate. These variable Nova Scotia 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 Nova Scotia
loans have been historically extremely popular. The good?
Nova Scotia 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 Nova Scotia
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 Nova Scotia mortgage broker for advice
on obtaining the best variable mortgage Nova Scotia loan.
The good? Most Nova Scotia 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 Nova Scotia variable mortgage.
First a disclaimer. No Nova
Scotia mortgage or mortgage Nova Scotia loan is portable.
It is the rate and term
that are portable. If you move to a new place and want
to take your Nova Scotia mortgage with you, you will
need a new Nova Scotia 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 Nova Scotia
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