Terry Paranych Real Estate Group Blog - mortgage

The Top 15 Mortgage Mistakes to Avoid

Buying a home is the one of the greatest investments you will ever make. For this reason, it’s important to avoid expensive errors, especially when applying for a mortgage. Here are 15 common (and costly) mortgage mistakes to avoid. 

Mistake 1: Not Improving Your Credit Score 

Lenders consider you more creditworthy when you have a high credit score. With a good credit history, you can qualify for a larger loan, a lower interest rate, and a lower monthly payment, so be sure to do everything you can to improve your credit score before shopping for a home loan:

• Payment history can account for up to 35 percent of your credit score, according to Equifax. You are more likely to improve your credit score if you pay your bills on time. Make sure…

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What you Must Know when Renewing or Refinancing your Mortgage

As a mortgage borrower in Canada, you’ll inevitably be faced with the decision to either renew or refinance when your mortgage term expires. For this reason, it’s important to understand the difference between the two so you can choose which will best suit your needs and goals.

Here’s what you need to know:

Mortgage Renewal

A mortgage renewal occurs when your current term expires, yet you still have money owing on your loan. In this scenario, you’ll opt to stay with your existing lender for another term (typically under the same conditions as the one previous), at an interest rate reflective of the current market.

Keep in mind, when your mortgage is up for renewal, you don’t have to stick with your current lender. You may opt to shop…

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Getting a Mortgage: A Step By Step Guide

A simple, seven-step guide to the mortgage loan process.

Step 1= Save Your Down Payment

Your down payment plays a major role in determining how much home you can afford and what type of mortgage you’ll qualify for. For this reason, saving your down payment is the essential first step to securing a great mortgage loan. Keep in mind, Canada’s mortgage rules require a minimum of 5% down and anything under 20% will be subject to mortgage loan insurance. 

Step 2= Get Pre-Qualified

After saving your down payment, the next step is to seek a mortgage pre-qualification. During this process, a lender will take a high-level view of your current financial situation (including your income, debt(s) and down payment) and give you a ballpark number as to…

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5 Easy Ways to Pay A Mortgage Off Quicker

Become mortgage-free a whole lot faster with the help of these five easy tips:

1. Opt For Accelerated Payments

Depending on the terms and conditions outlined in your mortgage contract, you may be able to make accelerated payments. This option allows you to make weekly or biweekly payments, amounting to roughly the same total you’d expect monthly. However, by paying more than once a month, you’ll be able to save on interest charges and make approximately one extra mortgage payment per year.

2. Increase Your Payments 

Of course, increasing how much you pay, even if it’s only by a small amount, is a surefire way to become mortgage-free faster. Here again, you’ll have to refer to your mortgage contract as you may only be able to boost your…

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