Different people need different mortgage programs. That's why at Broadmore Mortgage we have programs to fit every borrower's needs. Whether you are renewing your existing mortgage or buying your first home, a second...or a tenth, investment property or a vacation home, starting a renovation project or refinancing and taking some cash out from your property, we have a mortgage program to fit your particular situation. Your first time home buying is never easy, and it feels like... you don't know where to start. We can help, and provide guidance so let us evaluate all the options you have. You should discuss your particular situation with an experienced mortgage professional to access your particular borrowing abilities which will impact your long term financial health.
Do you wish to create the perfect house that fits your current or aspiring lifestyle? Does your family need more room to grow? When you are preparing to sell your current home and looking to buy a new one, your first consideration should be around your mortgage options, in particular with Bridge Financing? Another option with interest rates today still circling at historic lows, you should evaluate breaking your current mortgage and getting a new one for the total amount you need. To break your present mortgage, your lender typically has the right to charge a penalty based on the greater of three months' interest or the interest rate differential (IRD), which is essentially the difference between your old rate and current rates for your remaining term.
Lenders can calculate IRD differently; you should always get the actual penalty information from your lender. If you are in a term longer than five years and you have passed the fifth year, the three-month penalty applies and not the IRD so this may make breaking your mortgage more desirable.
You'll want to compare your new blend/extend rate with the rate you'd get with a new mortgage. Of course, the exact terms and conditions of your current mortgage need to be examined closely to decide if there are other factors to consider. The purchase of your dream home may be more affordable than you may have imagined!