Things you need to know about mortgages.

What’s the difference between paying rent and paying a mortgage? There are two big differences:

  • If you’re paying rent, you’re just paying someone else’s mortgage and you have no equity at the end.
  • Typically your rent goes up every year, but if you’ve got a mortgage at a fixed rate, then it only goes up at the end of your term.
  •  
    What’s a mortgage?
    A mortgage is a loan on a house or a property where the collateral or the security for that loan is the house or the property. It has a big, long lending period called an amortization period, typically 25 years, but it can be sort of 15 to 30 years or even shorter. It can be a five-year mortgage. Within that amortization period, you have different terms where you negotiate whether you are going to be paying a fixed rate, so the same amount for the entire term, or a variable rate, which would be prime minus x. So it’s gonna fluctuate and the terms can be anywhere from a few months to a year, two years, five years, or 10 years.
     
    If you’d like more information on mortgages and what they entail, contact us. We have a list of local lenders who would love to talk to you.

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    About the Author

    With expertise, respect, integrity, and compassion, I will guide you through one of life's most important personal and financial decisions - buying or selling a home. To me, you are family and I have your back! I appreciate that my clients trust me to guide them through one of their most important life decisions. To deliver professional 5 star service, I will always:

    •  Deliver Value
    • Build and Maintain Trust 
    • Put Clients First