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Where
to get a Canada interest only mortgage
I'm sure you've heard it before. Buy the
house of your dreams with a Canada interest only mortgage. You only have
to pay to interest payments, and you don't have to worry about paying off the
principle. Well, there's a lot more you need to know before you get a Canadian
interest-only mortgage.
For starters, the name is
misleading. There is no such thing as an interest-only
mortgage, because eventually you'll have to pay the loan
principal as well. What you're really getting is an
interest-only payment method which can be combined with
any type of traditional Canadian
lender mortgage.
The other thing you'll want
to keep in mind is that the benefits are way overblown. In
the early years of a standard Canadian
mortgage loan, the
interest takes up about 95 cents of each dollar paid to
the lender. The standard payment on a 6%, $100,000 loan is
about $600; of that, $500 is interest, "saving"
you just $100 per month. Moreover, not paying any
principal now means that you'll pay more interest
later.
Canada interest-only
payment periods almost never run for the entire term of
the loan, even when a fixed-rate mortgage is the
underlying instrument. Interest-only payments more
typically expire at the end of a set period. Once
the interest-only period ends, your payment will rise to
include both principal and interest.
Perhaps we can help you. If you own a home, our
interest-only mortgage specialist will do everything he possibly can to get you the
best mortgage rate Canada, with the best
terms. If you do not own a home, we can make suggestions about where you
can go to resolve your debt.
Other articles of interest are mortgage
rate Canada and personal
loan Canada.
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