By Raymond D. Gonzales

A very good place to get transfer and have a dream house is Canada. In Canada you have fantastic weather, great environment, panoramic views, and a great mix of unspoiled tourist destination and modernization. Who would not want to have a home in a place which offers a mix of such great things mentioned above? In addition to, the above mentioned reasons, lots of people from all over the globe are shifting to Canada due to its flexibility in home loans structure which is great news for many people who want to own a house or a property. Currently, many banks and financial institutions in Canada offer minimum 4 varieties of home loans which can fit within the financial constraints and the payment preferences of anyone who is willing to take up a mortgage in Canada. These structures are developed by various banks and institutions believing that the need and motives for owing a house or a property is different for different types of people. And of course each category of home loan offers different types of Canadian mortgage interest rate.

The premier typical offer in majority of the Canadian mortgage companies is Closed Variable Interest with a closed duration of 5-years. In this kind of Canadian Mortgage Rate, the rate of interest is reset every month, i.e. on the very first day of each month. This resetting of interest rate after every fixed interval is useful if the interest rates are trending downwards; however, people should not go for this sort of loan if the interest rates in the market are going up. There are various payments alternatives that are available based on financial conditions of the borrower. A person many pay weekly, alternate weeks, monthly or every alternate month. The availability of finance can either be conventional or high-ratio.The initial payment can be very low equivalent to 5% of the loan amount. Canadian Mortgage rates ranges from 5.50-5.75% for such type of loans. Another type of five-year mortgage loan is Fixed Mortgage Rate loan. But, Canadian Mortgage Rates ranges from 6-6.38% for such loans. Opposite to loans where interest rate is reset every month this loan is not advisable if the interest rates are trending downwards; however, one can go for such loan if the interest rates are moving upwards. Five-year mortgage loan, be it fixed or closed, is applicable only to properties classified as residential.

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By Rony Walker

The seven deadly sins in home loan lending are no different from the seven deadly sins outlined in the Bible. The latter damns your soul; the former can decimate your finances. Whether you’re buying a house by yourself, with your partner, or with a friend, be sure to avoid the following costly mistakes.

1. Thou shalt get your priorities straight.

Unless you are earning the equivalent of three people’s wages, there’s no way you can pay off a house loan, car loan, and a student loan at the same time. In fact, if you’re living on the budget of the recently employed, you have no business setting your sights on that sprawling four-bedroom number in the city’s most exclusive neighborhood. Clearly, you cannot serve two masters at the same time. Before you go home loan lending, separate your needs from your wants. Sort your priorities, and decide whether it’s a house or a new car that you need.

2. Thou shalt not underestimate home loan lending costs.

In home loan lending, costs follow only one trajectory: upward. Downpayment and monthly payments are not the only costs you have to budget. You need to factor in insurance and “start-up” expenses, in the form of furniture purchases and getting the cable TV and the telephone turned on.

3. Thou shalt not get a mortgage without first window-shopping thoroughly.

Home loan lending experts point out the only way to make sure you get the best deal in the market is to see exactly what type of deals are in the market. So, shop around for as long and as often as humanly possible.

4. Thou shalt not sign contracts without reading the fine print.

Home loan lending is no joke. Whatever contract you sign is legally binding between you and your broker. Be sure to pore over the contract and ask questions about the terms you do not understand. A home loan lending contract, no matter how seemingly straightforward, is one document you should not peruse with glazed eyes and a wandering mind. Ask about suspicious-looking clauses. If it reeks of fish, it probably is fishy.

5. Thou shalt not be blinded by exotic-sounding offers and very long-term arrangements.

Many lenders and brokers will always try to foist huge houses on you. After all, the bigger and costlier the house they sell, the chunkier their commission. Be very wary of offers that sound too good to be true. In particular, know that grandfather loans will earn you very small house equity.

6. Thou shalt never go without home insurance.

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