Mortgage Options/Prepayments

Options/Prepayments

We represent over 15 of Canada’s major lenders and
can almost design a mortgage that meets your needs.
Some of the prepayment options are listed below.

Pre-Payment Options

Prepaying is a practical and important mortgage
option that meets your changing needs and financial
situation. With this option you can reduce the
principal balance outstanding on your mortgage at
a faster rate than called for by the normal payment
schedule. Most major financial institutions allow
annual lump sum reductions of 10-15% of your
original principal balance and also allow you to
increase your monthly payment by up 10%-100%
during your term without any penalty.

Rate Protection

Whenever you receive a mortgage approval from
Approved Mortgages Ltd. we ensure that the rate
quoted will be the maximum rate you will pay providing your transactions is completed within the designated period of approval.
Even if rates increase your rate is fixed for up to 60/90 or even 120 days. On the
other hand should rates decline during this period you will receive the lower
rate up to 10 days prior to closing.

Some lenders reduce the rate automatically and some expect us to reduce them
some also allow only one reduction while others allow several- that is another
reason why you need a broker to help.

Be aware that while many financial institutions set your rate 60 days prior to
your completion date we can get rate holds for up to 120 days and it is therefore
important to consider this carefully when finalizing your offer to purchase.

Portability & Blendability:

Take the remaining term and rate with you:

This feature allows you to transfer the balance, interest rate and remaining term
of your current mortgage to your new home. If you increase the amount then the
balance of the new mortgage is added to the balance of the old mortgage with the
rate blended to assure you retain the favorable terms of your existing mortgage.
We also have lenders that allow split mortgages which means that you can keep
the old rate and term on the balance and then take an entirely new term on your
new extra funds. Sounds complicated but with automation it is simple and you
benefit from the split.

Leave the term and rate with your purchaser when you sell:

Any buyer who meets normal credit granting criteria can normally take over or
assume your mortgage when they buy your home, releasing you from all
responsibility. This is a financial option that can make your mortgage a very
attractive selling feature.

Other Special Features

Pre-Qualification and Pre-Arranged Mortgages

We're here to help you through the mortgage process. Our role is to facilitate and
expedite your mortgage application. In fact we'll even pre-arrange your mortgage
before you start looking for your new home. We'll confirm how much you can
borrow, what your payments will be and the price range you should consider.
We'll even ensure that the interest rate is reserved for 60 -120 days while you
shop for your home and complete the purchase. Approvals are generally rendered
the same day subject to appraisal of the property you have selected.

Life and Disability Insurance Protection

With mortgage insurance protection your family will continue to enjoy the
advantages of home ownership should something happen to you. With this type of
plan your outstanding mortgage would be paid in full to a pre-determined
maximum should you die or become totally disabled. While many lenders offer
this type of insurance there are often certain restrictions or disadvantages so it is
wise to consider shopping for outside insurance. We have a facility to help you in
that regard as well.

Transfer Program

If you currently have a residential first mortgage with another financial
institution consider that this mortgage can be switched to most major Banks,
Trust Companies or Credit Unions upon maturity of the term for little or no cost.
It could be to your advantage to start looking at alternative lenders 3-4 months
before your mortgage matures. Most lenders set the rates for renewals
approximately 30 days before renewal but we can set a rate for up to 120 days
before renewal - that could result in significant savings in a volatile or rising
interest rate environment.