5 Best Types Of Home Loans For First Time Home Buyers

First of all, huge congratulation on your decision to buy your own Home in Edmonton. The first property or home is very special for all of us. Whenever someone in my contacts pans to buy a home, their vibes can felt even from a far distance. I can imagine you carrying a big smile on the face and little tiredness regarding which option to select. 

Today, I’m going to help you little. Here I have listed 5 best types of homes that you can consider while buying your first home. But make sure you are taking a decision after consulting Mortgage specialist Edmonton. 

Now, I think you are more interested to have a look over the list of best loans. So let me begin with it. 

Low Ration Mortgages or Conventional Mortgage

It is one of the most common home loan available in Edmonton. In Low Ration Mortgage, you have to pay 20% of the property value as a down payment. Let’s say you are planning to buy a $400,000 house then according to conventional mortgage terms you have to pay $80,000 as a down payment. Generally this mortgage doesn’t require protection insurance. 

High Ratio Mortgages

Just now, we discussed Low Ration Mortgage, High Ratio Mortgage is completely opposite to it. In High ration mortgages, the buyer pays less than 20% of the property as down payments. These mortgages require “mortgage default insurance” from CMHC. These mortgages usually have higher rates than Low Ratio Mortgages. 

Open Mortgages

In this type of mortgages, you have the liberty to pay some extra money with your monthly repayments.  Besides this, there isn’t that strict and you have the flexibility to pay your repayments at any time without any extra panties. 

Closed Mortgages

Closed Mortgages are one of the most strict mortgage options available in Edmonton. In Closed Mortgage, you can’t change or adjust the terms of the mortgage before the maturity of the agreement. 

Fixed Ration Mortgages

In Fixed Mortgage, interest rates are fixed prior and mentioned in the agreement. Later the buyer could be provided with different options to repayments to end the mortgage quickly. 

Conclusion

I have mentioned all the popular home loan options available for the first time home buyer. Now, it’s up to you and your lenders to pick the most appropriate lenders. But before consulting with the lender, I would recommend asking a First Time Home Buyer Mortgage Edmonton specialist or you can visit Syedmortgages website to get a clear picture of the most appropriate mortgages. 

Source:https://mortgagespecialistinedmonton.wordpress.com/2020/05/26/5-best-types-of-home-loans-for-first-time-home-buyers/