Noncom

Oh i love this caller. But a plane? That's too much. Give them a rubber duckie and throw them into the sea.

Migrants "should be shoved on a plane and sent back immediately," says caller This caller who lives on the Kent coast and sees migrants land weekly said they should all be "sent back immediately."

Mortgage Definitions

When shopping for your home, it's a good idea to familiarize yourself with the terms used when searching for a mortgage. Understanding all important mortgage terms, will help consumer make educated choices about their mortgage, without going into too much debt.

Market Value

The highest price that a property will sell for on the market. To sum it up, market value is what a Buyer is willing to pay for your home and the lowest price a Seller would accept on a property. When you are considering buying or selling a home, it is important to learn the property's true market value. This value provides a realistic guideline for what you can expect to receive or pay in the transaction. Although this figure is helpful, many factors contribute to its calculation, and ultimately the final selling price is determined by what you or someone else is willing to pay.

Conventional Mortgage

Is a mortgage that does not exceed 80% of the purchase price. Mortgage loan Insurance is not required on conventional mortgages. Mortgages that exceed this limit must be insured. Conventional mortgages may be fixed-rate or adjustable-rate mortgages.

High-Ratio Mortgage

Is a conventional mortgage which exceeds 80% of the purchase price. This type of mortgage will require the buyer to insure the loan by obtaining CHMC Mortgage Loan Insurance or Genworth Financial Canada. Depending on how much you put down, the amount can be an additional 1%-2.90% of the purchase price.

Assumable Mortgage

A mortgage that can be assumed by the Buyer when a home is sold. Usually, the borrower must "qualify" in order to assume the loan. If interest rates have risen since the original mortgage was taken out by the Seller, the Buyer is the party that benefits the most from an assumable mortgage. The reason for this is that if interest rates rise, the cost of borrowing increases. Therefore, if the Buyer can take over the Seller's relatively lower-rate mortgage, the Buyer will save having to pay the higher current interest rate.

Bridge Loans

Not used much anymore, bridge loans are obtained by those who have not yet sold their previous property, but must close on a purchase property. The bridge loan becomes the source of their funds for the down payment. One reason for their fall from favor is that there are more and more second mortgage lenders now that will lend at a high loan to value. In addition, Sellers often prefer to accept offers from Buyers who have already sold their property.

Gross Debt Service (GDS)

This is calculated by adding together the annual payments for the mortgage principal, interest, realty taxes and heat plus 50% of the condo maintenance costs if applicable and then divided by the gross annual income of the buyer.

Total Debt Service (TDS)

This is calculated by taking the same annual payments for the mortgage principal, interest, realty taxes, heat and 50% of the maintenance costs and adding in any annual payments for loans, lines of credit, credit cards and other debts.

Closing Costs

Various expenses associated with purchasing a home. These costs can include, but are not limited to, legal/notary fees and disbursements, property land transfer taxes, as well as adjustments for prepaid property taxes or condominium common expenses, if any.

Term

The length of the current mortgage agreement. A mortgage may be amortized over a long period (such as 30 years) with a shorter term (six months to five years or more). After the term expires, the balance of the principal then owing on the mortgage can be repaid or a new mortgage agreement can be entered into at the then current interest rates.

Amortization

Is the number of years that it will take to pay off the loan. An amortization period could go up to 30 years. Part of the payments goes towards repaying the mortgage principal and the rest goes towards the loan interest.

Mortgage Payment Options

There are four typical mortgage payment options; monthly, the monthly payment is the most standard payment, and it simply means that you pay your mortgage once a month on one and the same day of the month; bi-weekly, a payment every second week on one and the same day; accelerated bi-weekly, paying every second week, you will make a total of 26 payments for the year; and accelerated weekly, with this payment plan you'll be making 52 payments a year, which again results in additional monthly payment for the year. Select one that is best suited for you.

Mortgage Pre-Approval

To pre-quality yourself for a mortgage and avoid being declined during the negotiating period. This is always conditional upon you providing the "satisfactory" proof of income, down payment and credit score to the lender.

A preapproval is not a binding commitment on either the applicant or lender, but rather an indication that the lender is ready, willing, and able to extend a mortgage to a mortgage applicant once a suitable property has been secured.

Searching to Buy a Home?
Buying a home can be an emotional, time consuming and stressful process. Let us help you save time, money and the aggravation of searching. It costs you nothing.

Searching for a home?
Complete the following information to be put on a Prospect Search. The Prospect Search service will be arranged by a licensed real estate agent.

How does it work?
Receive listings daily directly into your e-mail of homes that match your criteria. The real estate agent will book the showings to view the homes you select.

It's simple, it's free and it works!