Introduction To Mortgages

What is a mortgage and how do they really work?

A Mortgage is an interest in property provided by the borrower as security for a loan.

The borrower (mortgagor) receives funds
The lender (mortgagee) has an interest in the property until the loan is repaid.

Sources Of Mortgage Funding

Chartered Banks
Trust Companies
Life Insurance Companies
Credit Unions
Loan Companies
Finance Companies
Mortgage Brokers
Private Placements
Vendors (Sellers)

Types Of Mortgages

1. Conventional Mortgages

Loan cannot exceed 75% of the appraised value of the property

2. High Ratio Mortgages (up to 100% of the appraised value)

Loan can exceed 75% of the appraised value
Must be insured if arranged through a bank or trust company (most are insured by Canada Mortgage and Housing, CMHC)

3. NHA Mortgages (Granted under The National Housing Act 1954)

Lenders are insured against loss by The Canada Mortgage and Housing Corporation

4. Collateral Mortgage

A loan secured by a Promissory Note and then further secured by means of a mortgage on the property

Determining Your Affordable Price Range

Buyer Hidden Costs

Step-by-Step Buying Process

Introduction To Mortgages

Tips for buyers

Tips for Sellers

Property Barry Currently has listed 'For Sale'

Barry Gellner
And
Delaine Dyrdal
RE/MAX Kelowna
Suite 100
1553 Harvey Ave.
Kelowna, BC
V1Y 6G1
Ph. 250-717-5000
TOLL FREE
1-888-213-2333

Kelowna is the destination city of thousands of baby boomers annually and just a short visit will be enough to convince any skeptic of the many advantages of living in this beautiful community. The people are wonderful, the city is beautiful and the weather just can't be beat. If you're in the market for real estate, Kelowna is the oasis you've been looking for.