What’ Ss ina ‘mortgage?

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FOR | MOST. Canadians, buying a home represents the 2 Jargest single purchase of 2, “ Hfetimes : i Few can afford to write 4 -cheque forthe entire pur- ) chase | prices: They: need, a - mortgage - =a lorig-term : to ‘pay*for.the prop-

guariinice':to * Tepay: : “ate

, are available.’ ..¢ from banks,: trust’ and, life insurance “companies, and _: ‘ ¢redit/.unions. Homes’ can also. be financed’ by lawyc S, :tealtors, .mortgage) brokers and’ private individuals: LS The “ainount "pends : ‘on. “the cost of the? property,” “your level. of in-- debt, - and. the:

availabili ty: of | mortgage

‘Usiially the buyer’ ‘pays a centage. of the cost'of the . n. pay- yment:

payments to smal ones, but; it=may,.sometime "be easier

You bet! Dont’ you

& misses this 4 BR'split level cn Calpe are‘in and the builder wants 2 quick’salel/S

Joaned de- *

make a small down, payment when you buy.a house, you Will have moncy: left in the ‘bank for other things. : ' Mortgages have three ‘characteristics: amortization period, interest’ rate... and term. CMHC has prepared a Glossary ‘of, House

rs ‘going to“a lending

_dnstitution to ask for:a mor-'

‘tgage on'a dream house. : A-Z af Mortgages Amortization Period:. The

“actual number of years “it

“will take to repay a mortgage j “loan jin full. The: period is /: Bormally « 20. to 30 ‘years. A =

shorter length. of time means “higher” monthly .. , payments

but savings in the total’ ine.

terest paid. . p “Closed Mortgage

prepayment allowed ‘on the. .

‘principal amount

mortgage’ during “a” given ;

period of time. * -

Default: Failure to “abide bythe terms’ ofa mortgage ” loan agreement., Usually this

means: failure to make. mor: tgage® payments at the ti set by the contract.

pate ‘The. owner's

, agreement» ““and borrower extending the « : _ mortgage “for

ve : ** period of time after the ini- morigage principal | -and:the ~~” ‘

claims to: the property. Wis usually: the difference be. *

total value of the praperty

“Insured, Mortgage: A mor.” tgage” loan for, which ‘the ° lender is >.insured against

* default by. the borrower.: |

Interest Rate: “A percent mount

BF KE § » It is affected by the sizevof the.

loan and length of time. over ‘ which it is:borrowed!

Lending Value: ‘The’ ap- praised market value of the property. It .is usually, but

(Rot always, the sale price of jthe property. «75s

Life-Insured Mortgage: A form. of term: life ‘insurance: tecommended : for “families with young’ children.’ If one

-of the homeowners dics, the _ estate is <paid ‘the balance © ; the mortgage. °

owing ‘on Survivers‘are thus protected againstilosing their home ‘if, they cannot meet the mor, tgage payments.

icMortgage: A claim against ‘

owner:of the property.to the! Jender ‘as security for money. , borrowed. &

Mortgage’ Contracts. A>

written . agreement » -between_- borrower’ and: lender, “setting ut the terms of the loa --Mortgage; Renewal “between:

further.

tial term has expired.”

-Open ‘Mortgage:* A mor- a ‘gage. allowing prepayment

tts principal al”

‘Ss Mortgages Page| 76.

ed hot value in a very special design’ of tamil

Kknd

home, Centrally. cated, ‘this’ Conternporary, offer: 3 BR plus a unique family area‘up. Add a little. ity “view t [

| i

[

11 Friday, June 17, 1988 ~ North Shore News

oan aes Ott. ape 8231

BAR BARA

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