Competition = Low Mortgage Rates

When Applying for your Mortgage

When applying for your mortgage it is beneficial to have the following information readily available:

• A current salary statement or letter from your employer
• A confirmation such as a letter or bank statement showing the source of your down payment
• Financial statements for the last three years and personal income tax returns if you are self employed
• A copy of the accepted purchase offer
• Details on the property being purchased such a land survey or an MLS print out
• Building plans, specifications, and the builder agreement if you are buying a home that is to be constructed

Having Difficulty Managing your Monthly Bills?

For many Canadians, it is easy to let the monthly bills get out of control and it becomes difficult to make ends meet. Making multiple payments to credit cards and other credit lenders can be overwhelming. Our mortgage brokers at Alberta Equity are qualified professionals who are trained to find the perfect solution for your unique situation, so why not make things much simpler with one easy payment? Here are some options to consider:

• Refinance your existing mortgage and use the equity in your home to pay off high interest credit cards
• Obtain a short time second mortgage for a if you are unable to refinance your existing mortgage

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Tips on Saving for a Down Payment

If saving for a down payment seems impossible, think again. The following tips will help you achieve this realistic goal:

• Set a goal by determining what you can afford to spend on a home
• Calculate how much you need to save (generally 5% of the purchase price, although more is better)
• Remember to include closing costs and other expenses related to the purchase into how much you need to save
• Be realistic and pace your savings according to your desired purchase date (e.g. If you want to purchase your home within a year, take the calculated down payment amount, add the amount for closing costs and other expenses, then divide by the number of months until the purchase date).

Open Mortgage vs. Closed Mortgage

OPEN MORTGAGE
An "open mortgage" can be paid back in full at any time prior to maturity, without penalty. You will find most variable rate mortgages with deep discounts are closed for a pre-determined time. After this time frame the mortgage can become an open mortgage. A qualified mortgage agent can clarify the differences for you.

CLOSED MORTGAGE
A "closed mortgage" can not be terminated or paid out before the end of the term without penalty. A "closed mortgage" provides payment stability but penalizes a mortgager who wishes to terminate the mortgage before the end of the term. Terms can be for six months, one to five years, or for seven, ten, fifteen, eighteen and twenty-five years, with the five year term being the most common. Interest rates generally rise with the length of the mortgage term. Most fixed rate mortgages are closed.