Phone CALL OR TEXT US 705.787.6196
TYPE OF MORTGAGES

Mortgages can seem intimidating, especially for the first-time buyer. Once you’ve qualified for a mortgage, there are some basic decisions you will have to make before you take possession of your house or condo: Mortgage term, amortization, interest rate and type of mortgage.

Conventional mortgage - Aptly named because they are the most common type of mortgage. The lender will loan you up to 80% of the appraised value or purchase price of the property (whichever is lower), and you generally need to come up with the other 20% as a down payment.

Second (and third) mortgages - These are additional financing arrangements behind an existing mortgage, also secured by your property. Secondary financing is generally arranged at a higher interest rate and for a shorter term than the first mortgage.

High ratio mortgage - When you don’t have the 20% down payment required to get a conventional mortgage, a high ratio mortgage can advance you up to 95% of the home’s appraised value or purchase price. However, since you are borrowing more than the usual 80%, the government insists that the mortgage is insured against default and that you pay the cost of the insurance. That cost can be a few percent of the mortgage amount, and is added to the mortgage principal.

TERMINOLOGY

Mortgage term: is the amount of time a lender will loan you money for.

Amortization: lenders calculate or amortize, the mortgage payments over a much longer time. They are calculating a payment schedule as if it will take you that long to pay back the principal plus interest. The longer the amortization period, the lower your individual payments will be – but this also means you’ll be paying more in interest.

Interest Rates: interest is the cost of borrowing money. Interest rates fluctuate with the economy. There are two basic types of interest rates used in mortgage products: fixed-rate and variable-rate.

LENDERS

There are many lenders and mortgages out there. Some options to explore may include your own bank or a mortgage broker.

Occasionally some lenders are willing to negotiate on both the loan rate and the number of points. This isn't typical among many of the established lenders who set their rates. Nevertheless, it never hurts to shop around, know the market and try to get the best deal. Always look at the combination of interest rate and points and get the best deal possible. This is reflected in what is called the APR or Actual Percentage Rate. The interest rate is much more open to negotiation on purchases that involve seller financing. Generally, these are based on market rates but some flexibility exists when negotiating such a deal.

CLIENT REVIEWS

When dealing with Dolf, your not getting just any salesman, your getting some one with integrity and morals, you wont find a more honest salesmen in the muskoka area. Your in good caring hands with Dolf Witlox.

Bryan, Huntsville

As first time home owners who are new to the area, we had a lot of questions and needed a lot of guidance. Anzie went out of her way to help us find exactly what we wanted, and she also made herself available to us at all hours of the day. Any questions I had she answered, and went way out of her way to make us comfortable and informed. I couldn't have asked for a better experience buying our first home! I would reccomend Anzie and Dolf to anyone!

Erin, Bracebridge

Absolutely amazing people to work with. Dolf and Anzie go above and beyond. If you are looking to deal with a couple who run their business with integrity, honesty and the love of helping people, choose them. You will not regret it! If there were more than 5 stars, they would be receiving them.

Kaitlyn, Port Sydney

They're both very professional and super nice people. They helped us buy our first house 2 years ago and we'd use them again in the future as well. I definitely recommend them to anyone! It was a pleasure working with them.

Krystal, Huntsville

5 Stars!!! Dolf and Anzie are honest, genuine, kind, hard working and friendly. You won’t find better real estate agents anywhere! Highly recommended!

Simone, Baysville

For attaining President's Gold or
higher for 14+ consecutive years

For achieving the top 3% of
market's sales nationwide

FOLLOW US

#1

Real Estate Brokerage in Muskoka

Royal LePage