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1M FINANCING FOR RENOVATING OR NEW HOMES Whats in a mortgage moil Canadians buying home represents the tingle put lifetime Few can afford to cheque for the entire purchase They need mortgage along term loan to pay for the property A mortgage u security for a loan on the property you own tee to the lender to repay the money rowed It alio collateral against the amount owed Mortgages are available from bank tnui and life insurance companies and credit unions Home can also be fi by lawyers realtor mortgage broken and private individuals The amount loaned depends on the cost of the property your level of in come and debt and the availability of mortgage money in the financial mar kef Usually the buyer pays a percentage of the cost of the property as a down payment A large down payment low en he monthly mortgage payment and reduces the amount of interest paid over time Lenders prefer large down payments to small one but it may sometimes be easier to sell your home if you make only a small down payment More potential buyer wilt be able to afford the small down payment And of course if you make a small down pay mem when you buy a house you will have money left in the bank for other Mortgages have three character tics amortization period interest rate and term ha prepared a of House Building Term and other related items as a guide to pur chaser going to a lending institution to ask for a mortgage on a dream house A- of Mortgages Amortization Pcnod The actual of years it will take to repay a gagcloantnfull The period is normally to years means higher monthly payments but savings the total interest paid Interest Rale A percentage of the borrowed amount added to the principal as a charge for the service It Is by the of the loan and length of time over which it is borrowed Lending Value The appraised mar value of the property It is usually but not always the sale price of the property Life Insured Mortgage A form of term life insurance recommended for families with young children If one of the homeowners dies the estate is paid the balance owing on the mortgage Survivor are thus protected against losing their home if they cannot meet the mortgage payments Mortgage A claim against real prop erty given by the owner of the property 10 the lender a security for money bor Mortgage Contract A written agree I between borrower and lender letting out the term of the loan Mortgage Renewal The agreement between lender and borrower extending the mortgage for a further period of time after the initial term ha expired Open Mortgage A mortgage allow prepayment on the principal at a specified time before the end of the term There may be a penally attached which charged to the borrower A lump sum payment to the lender to reduce die mortgage prin cipal Prepayment Privilege Payment of the principal amount in full or in part at a date earlier man the termination date indicated in the mortgage contract Principal The amount owing on the mortgage debt PI The combined principal and in due monthly on a mortgage Insured second mortgages for renovations Closed Mortgage No prepayment allowed on the principal amount of the mortgage a given period of tune Default Failure to abide by the terms Usually this means failure to make mortgage payment at the tune set by the contract Equity The owners investment interest in a property over and above all claims to the property It is usually the difference between the amount the mortgage principal and the total value of the property Foreclosure A legally enforced transfer of real property ordered by a court to satisfy default in payment on a mortgage Insured Mortgage A mortgage loan for which the lender is insured against default by the borrower A large pan of Canada exist housing stock was built over years ago to satisfy the demand created in part by the post war baby boom Like their original occupants many of these homes may now nave started to show a few wrinkles As the turn of the century looms closer Canada Mortgage and Housing Corporation cites the need for the reha bilitation of the existing national ing stock as one of Canada s biggest challenges CMHC second mortgage insurance program for home rehabilitation and improvement was created to encourage homeowners to improve their older dwellings Previous CMHC mortgage insurance programs applied only to first mortgages Insured second mortgage loans have the ad vantage of the tame lower inter est charges normally applied to first mortgage loans Second mortgage loan insurance i available for the rehabilitation or chase of single unit and for buildings if one unit is occupied by the owner As with all mortgage programs the lender has full pro tection against borrower default The loan is backed by the federal govern ment according to provisions of the National Housing Act- Naturally the insured loans carry conditions specified by CMHC At though there is no fixed maximum loan amount the first and second mortgages cannot exceed per cent of the first SI and per cent of the remain value The minimum second mortgage loan amount set at and the term must be no less than one year To protect itself against borrower de fault CMHC also applies mandatory condition to these and all mortgages it insures NHA second mortgage loans are available from some lender approved by CMHC These may include banks trust companies insurance companies credit unions and catties populaires ft few CALEDON BEAUTY 1 850 ft bungalow 4 miles east of Caledon Village Sunken living roomcathedral ceilings Custom built 1 year old with magnificent view of Caledon Offered at Call Bill or Andy for personal viewing GEORGETOWN 1 V2 STOREY 3 bedrooms finished rec room with wood- stove and stone hearth gleaming hardwood floors Hurry on this one Only 14490000 STONE ROAD MALL BUSINESS Call us lor a preview on this great opportunity in the industry SAUBLE BEACH GETAWAY Sporting goods business and 3 bedroom residence A chance to enjoy the good life Only 15990000 plus stock 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