Mortgages are nothing to be scared of, they’re just like any loan out there where the due date is crucial and the principal amount should stay within your paying capacity. And just like any loan out there, avoid applying for one unless it’s absolutely necessary, otherwise be prepared for a ton of stress and possible penalties in the near future. If mortgages Toronto is still what you require then checkout the features of the ones offered at Mortgage for Less.
Lump Sum Payments
A lot of banks differ when it comes to lump sum payments; clients can end up with a lender that will only 10% advance payment and another that lets 25%. Ultimately, the higher the allowable prepayment amount, the faster the mortgage can be paid off; the technique here is to find the one with the best availability of making prepayments all throughout a year. Whenever potential clients choose one mortgage over the other, comparing this feature is oftentimes overlooked.
Increasing the Minimum Payment
After one or two years, you might just want to increase the payments by a hundred dollars because at that time you’ll be able to afford it. A couple of lenders will allow the increase but at a specified rate; for example, the increase is limited to 10% of the premium.
Only a few lenders will allow this, but here’s how double payments work; if your monthly premium is $500 and you were able to pay another $500 in the same month, then the second payment will be deducted from the principal amount of the loan.
Take note that not every lender will offer the early renewal feature, but it’s a good feature where they do. The feature allows the client to renew even before the maturity date, there is a possibility of incurring penalties but when you consider everything you may actually save more.