Conventional Saskatchewan mortgage
or Saskatchewan mortgage conventional
An Saskatchewan mortgage that does
not require a mortgage default insurance fee. Typically
this is a mortgage Saskatchewan 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
Saskatchewan mortgage because they may not have enough
of a downpayment.
Non-conventional 1st Saskatchewan
mortgage or first’Saskatchewan mortgage non-conventional
An Saskatchewan mortgage that is
used when you need Saskatchewan mortgage lender financing
which is greater than 75% of your house purchase or property
value. This can also be called a ‘high ratio’ Saskatchewan
mortgage when it is a refinanced ‘first’ Saskatchewan
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
Saskatchewan mortgage default costs a lot in premium
costs - but, thankfully, this can be added to the first
mortgage Saskatchewan 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.
Saskatchewan Second mortgage or
Second Saskatchewan mortgage (Saskatchewan home equity
An Saskatchewan second mortgage
or second Saskatchewan mortgage (also called a Saskatchewan
home equity loan) is usually a non conventional mortgage
Saskatchewan loan. Often it is used when Saskatchewan
financing exceeds 75%. This is usually made available
through private Saskatchewan mortgage lenders rather
than institutional Saskatchewan mortgage lenders. A private
Saskatchewan second mortgage or Saskatchewan mortgage
second is used with your mortgage Saskatchewan first
priority. Your personal Saskatchewan broker will advise
you when this makes sense. The good? Sometimes, your
current down payment amount available PLUS a new Saskatchewan
second mortgage allows you ’enough’ of a
down payment to qualify for a non conventional purchase.
You can then avoid paying Sask mortgage default insurance
altogether. And that can save you thousands in default
mortgage insurance premium dollars. Also, an Saskatchewan
second mortgage or second Saskatchewan mortgage (Saskatchewan
home equity loan) will allow you to access your cash
in your Sask 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 Saskatchewan second
mortgage or Saskatchewan home equity mortgage loan as
the Sask mortgage lenders are private and do not charge
an insurance fee. The bad? Sask second mortgages always
have a higher interest rate cost than a first Sask mortgage
because there is a higher perceived risk by the Sask
lender with the borrower.
CMHC or GE Capital
Mortgage Insurance companies licensed
by the Federal Canadian Government to provide mortgage
insurance for Saskatchewan mortgage lenders. This insurance
protects Saskatchewan mortgage lenders against default
by borrowers. The insurance is usually added to the mortgage
Saskatchewan 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 Saskatchewan loan balance.
mortgage or a ‘Closed’ Saskatchewan mortgage
An open Saskatchewan mortgage has
terms from 6 months to 1 year This is an Saskatchewan
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 Saskatchewan mortgage balance. This is helpful
if you plan to pay down your mortgage Saskatchewan loan
with a large sum, or the entire balance of your Saskatchewan
mortgage in a short period. The bad? Saskatchewan mortgage
lenders charge higher rates than for closed terms because
of this convenience. Here is a helpful tip from your
personal Saskatchewan mortgage broker. If rates are going
up…and you are moving…get a closed term Saskatchewan
mortgage. You can ‘port’ your current Saskatchewan
mortgage to your new place.
A closed Saskatchewan mortgage has
terms from 6 months to 10yrs. The good? The rates are
lower than ‘open’ mortgage Saskatchewan loans.
The bad? You need to be careful to pick a term that suits
your needs. Your personal Saskatchewan 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 Saskatchewan
mortgage to another Saskatchewan mortgage lender in the
middle of your term.
ARM Saskatchewan mortgage or Variable
The ARM (Adjustable Rate Mortgage)
or Variable rate Saskatchewan mortgage is all about the ‘rate’ charged
with your mortgage Saskatchewan loan. Instead of a ‘fixed’ rate
the rates fluctuate. These variable Saskatchewan 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 Saskatchewan
mortgage loans have been historically extremely popular.
The good? Saskatchewan 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 Saskatchewan
mortgage. The bad? You will pay a penalty if you want
to pay it off early or switch Sask mortgage lenders.
Or you may find yourself chasing headlines when prime
rates rise. Ask your personal Saskatchewan mortgage broker
for advice on obtaining the best variable mortgage Saskatchewan
loan. The good? Most Saskatchewan mortgage 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 Saskatchewan variable mortgage.
First a disclaimer. No Saskatchewan
mortgage or mortgage Saskatchewan loan is portable.
It is the rate and term that are portable. If you move
to a new place and want to take your Saskatchewan mortgage
with you, you will need a new Saskatchewan mortgage
with the same rate, term, and amortization that was
left on your old place. The good? The benefit of a
portable Sask 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 Saskatchewan mortgage lender.
And, you will still owe a ‘pound of flesh’ as
you will have to pay legal fees.