What is a mortgage? A mortgage is a loan. For most, buying a home means having a mortgage. You borrow money to buy a home and use that home as collateral. Financial institutions lend money for various mortgages. Actual loan amounts are called the principal.
There are different types of mortgages. Each with its own advantages and disadvantages. It is important to do the research in order to choose the right mortgage for your financial situation and real estate goals.
An important question: Are you planning to buy or sell first? If buying and you currently own a home already, ensure the offer to purchase is conditional on selling your current property. Selling first gives more peace of mind.
Market conditions are also important to consider. In a seller's market you can typically do better selling property after buying. Another element to a mortgage is the associated amortization period. Amortization period is the number of years it would take to repay the entire mortgage amount based on a set of fixed payments. The longer the period, the more interest is paid over the life of the mortgage.
If you have further questions relating to mortgages, lenders, and pre-approval processes, the sales team at ClaimPost Realty Ltd. can assist you and have a list of professionals you can contact in all areas of buying and/or selling of your property.