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Lenders closely review income stability, Transunion Credit Score history and property appraisals when assessing mortgage applications. Penalties for breaking a term before maturity depend about the remaining length and so are based on a formula set by the lending company. A home inspection costs $300-500 but identifies major issues early so the mortgage amount can aspect in needed repairs. Switching lenders at renewal could get better mortgage terms but incurs discharge and setup costs. Prepayment charges compensate the lender for lost revenue when home financing is paid back before maturity. Bridge Mortgages provide short-term financing for real-estate investors until longer arrangements get made. Reverse mortgage products help house asset rich cashflow constrained seniors generate retirement income streams without required repayments until death or moving out transfers tax preferred successors value. Mortgage brokers can access wholesale lender rates not available on the public to secure discount pricing.

Lengthy extended amortizations of 30-35 years reduce monthly costs but increase interest paid substantially. Mortgage brokers can search multiple lenders for the most effective rates on the part of borrowers to save costs. First-time buyers should budget settlement costs like land transfer taxes, hips, inspections and title insurance. Mortgage Term Selection Factors consider type timing goals weighing comparative merits between fixed open variable products determining rate stability flexibility. MIC mortgage investment corporations provide financing choices for riskier borrowers not able to qualify at banks. Open mortgages allow extra lump sum payments, selling anytime and converting to fixed rates without having penalties. The debt service ratio used in mortgage qualification compares principal, interest, taxes and heating to income. Variable rate mortgages cost less initially but leave borrowers vulnerable to interest increases at renewal. Mortgage brokers access discounted wholesale lender rates not available straight away to secure savings. Fixed rate mortgages provide certainty but limit flexibility for extra payments in comparison with variable terms.

Mortgage lenders review loan-to-value ratios according to property valuations to handle loan exposure risk. Down payment, income, credit rating and loan-to-value ratio are key criteria lenders use to approve mortgages. Mortgage applications require documenting income, taxation statements, advance payment sources, property value and overall financial picture. B-Lender Mortgages feature higher rates but provide financing to borrowers not able to qualify at banks. Lower ratio mortgages generally offer more term flexibility and require only basic documentation beyond ID, income and credit assessment. Conventional mortgages require 20% first payment to avoid costly CMHC insurance fees. Mortgage default insurance allows high ratio lending while protecting lenders if borrowers default. The Bank of Canada monitors household debt levels and housing markets due to the risks highly leveraged households can pose.

Borrowers can make one time payments annually and accelerated bi-weekly or weekly payments to pay mortgages faster. The maximum LTV ratio allowed for insured mortgages is 95%, so 5% advance payment is required. Mortgage loan insurance protects lenders by covering defaults on high ratio mortgages. The Home Buyers Plan allows first-time buyers to withdraw RRSP savings tax-free towards a downpayment. The CMHC along with other regulators have tightened mortgage lending rules several times to cool down the markets and build buffers. Mortgage brokers access wholesale lender rates unavailable straight away to secure discounted pricing. Switching lenders or porting mortgages can perform savings but often involves fees such as discharge penalties.