How do Mortgages work?
A mortgage is a loan that is used to finance the purchase of a property, such as a house or a condo. When you take out a mortgage, you borrow money from a lender, such as a bank or a mortgage company, to buy the property.The mortgage loan is typically paid back in regular payments over a set period of time, usually 15 to 30 years with renwal terms of 3-5 years in Canada. The payments consist of both the principal amount borrowed and the interest charged by the lender for the use of the money.There are different types of mortgages, including fixed-rate mortgages and adjustable-rate mortgages. A fixed-rate mortgage has a set interest rate that remains the same throughout the life of the loan, while an adjustable-rate mortgage has an interest rate that can fluctuate over time based on market conditions.To qualify for a mortgage, you will need to meet certain criteria set by the lender, such as having a good credit score, a stable income, and a certain amount of cash for a down payment. The amount you can borrow will depend on a variety of factors, including your income, credit score, and the value of the property you are purchasing.At PC275, our team of experienced real estate agents can help you navigate the mortgage process and connect you with trusted mortgage lenders who can provide competitive rates and terms. We understand that the mortgage process can be complex and confusing, and we are committed to providing our clients with the guidance and support they need to make informed decisions about their mortgage financing.