Financing the purchase of a home requires a broad range of decisions, many of which will affect your lifestyle for many years to come. Accurate information is essential and so is comparison shopping for the terms and conditions that best suit your needs.
The Financial Services Commission of Ontario (FSCO) -- the government agency responsible for overseeing the mortgage broking industry in the province—suggests taking as much time as needed to understand all of your options. When talking to a potential mortgage provider, broker, or agent, for example, be sure to get answers to the most important questions:
• What type of mortgage is best suited to my needs?
• What is a fixed, variable, or adjustable rate mortgage?
• What is an open, closed or convertible mortgage?
• What features and options are best for my needs? For example, should I get:
- a short or long mortgage term?
- a short or long amortization period?
- more frequent or less frequent mortgage payments?
- the ability to make pre-payments or lump sum payments?
- the option to transfer my mortgage to another home?
• How will different factors influence the total cost of my mortgage?
• How can I save on interest charges?
• How can I change the amount of my payments?
• What fees are involved in setting up, discharging or renewing my mortgage? How are they
calculated?
• What are my options if I cannot make a payment?
• Is there a fee if a payment is late?
• What penalty charges apply if I want to break or renegotiate my mortgage contract?
Your individual needs and preferences will likely raise other questions too. Additional information is available online at www.fsco.gov.on.ca, select Mortgage Brokers.
