User:AnnaFontenot13

The Bank of Canada monitors household debt levels including mortgage borrowing which may impact monetary policy decisions. Shorter and variable rate mortgages allow greater prepayment flexibility. Lump sum payments through double-up or accelerated biweekly payments help repay principal faster. Low Ratio Mortgage Financing requires insured home loan insurance only once buying with lower than 25 percent down preventing need for coverage. The First-Time Home Buyer Incentive reduces monthly mortgage costs through shared equity without any repayment required. Deferred mortgages not one list of private mortgage lenders them any payment of principal with an initial period, lowering initial costs for variable income borrowers. More rapid repayment through weekly, biweekly or lump sum payments reduces amortization periods and interest costs. High-ratio insured mortgages require paying an insurance coverage premium to CMHC or possibly a private company added onto the mortgage loan amount. Mortgage affordability has become strained in some markets by rising home prices that have outpaced rise in household income. The mortgage stress test requires all borrowers prove capacity to pay at higher qualifying rates. Fixed vs variable rate mortgages involve a trade-off between stable payments and flexibility over the term. MIC mortgage investment corporations appeal to riskier borrowers unable to qualify at traditional banks. Mortgages with variable rates or shorter terms often feature lower interest rates but greater uncertainty on future payments. Stated Income Mortgages were popular before the housing crash but have mostly disappeared over concerns about income verification. Switching lenders at renewal gets better mortgage terms but incurs discharge and setup costs. Down payment, income, credit standing and property value are key criteria assessed in mortgage approval decisions. High-ratio mortgages allow first payment as low as 5% but have stricter qualification rules. Non Resident Mortgages come with higher down payments for overseas buyers who won't occupy. The CMHC provides tools, insurance and advice to coach and assist first time house buyers. Many lenders allow doubling up payments or increasing payment amounts annually to repay mortgages faster.