Mortgages in Canada

Canadian mortgages have some quite subtleattractive to buyers who will not normally qualify for
differences from the UK system I was used to so Ia mortgage. The debt may be sold to a third party
have no doubt they will be fairly new to mostbut the original terms should apply.
nationalities. Whichever type of home you buy, theWith such a major part of your life on the table it is
chances are you will need a mortgage. There aredefinitely worth using the services of a Professional
several different methods of financing a home buyingMortgage Broker. That way, all the options for
purchase that are used in Canada:financing will be thoroughly explained, sound advice on
Assuming a mortgage - This involves taking over thethe best options for your individual circumstances can
sellers mortgage and negates the need to arrangebe given and access to mortgage funds can be
your own financing. The rate you take on may wellarranged for most people under the most favorable
be fixed lower than the rates on offer and youterms. Most are independant and will search out the
should not be required to pay appraisal and otherbest deal from across the current market as they
setup costs. In some cases you will not have toare not tied to any particular vendor.
qualify for the mortgage either, though this dependsUnder international money laundering laws, ALL
on the original terms imposed by the lender. Normally,mortgage providers will now require proof of origin of
you will have to buy out the part of the mortgageany funds used to purchase a property. It is essential
already paid off by the current lender.that any lawyers closing statements for house sales,
Standard mortgage - Most major banks will lend upmoney transfer receipts, savings statements and
to 65% of the appraised value to immigrants beforebank records are made available when you apply for
they have permanent employment as part of aa mortgage. Basically ensure you have a verified
welcome to Canada package. This will depend on"paper trail" for your money!
individual circumstances and obviously will not beFinally, if you eside in Canada, most Canadian
available to some people. Once you are working in fullemployers will pay every 2 weeks and so it makes
time employment, normal rules should apply.sense to pay your mortgage "bi-weekly". This means
Vendor Take Back - Basically, the seller of theyou will make 13 payments a year instead of 12 and
property will lend some or all of the cash required toso will pay the mortgage off faster - this can take
buy at terms negotiated between you. This is veryaround 3.5 years off your mortgage life.