Determining the Right Term

General Vinil Sood 27 Dec

By understanding mortgage terms, you can save the most money and choose the term that is right for you.

There are many factors, which you will also have to take into consideration when you select your mortgage term length.

If paying your mortgage places you close to the edge of your comfort zone, you may want to opt for a longer-term mortgage. This is to ensure that you will be able to afford your mortgage payments should the interest rates increase. By the end of the mortgage term, most buyers are in a better financial situation and have a lower principal balance due. Should interest rates rise, buyers will be able to afford higher mortgage payments.

If you are shopping for a mortgage for an investment property, you may consider choosing a longer mortgage term. This will allow you to more accurately project your future income from the property.

Choosing the right mortgage term is a unique decision for each individual. By understanding your personal financial situation and your risk tolerance, Vinil can assist you in choosing your mortgage term.

Mortgage Life Insurance

General Vinil Sood 20 Dec

Buying a home is one of the largest purchases you will make in your lifetime. At Dominion Lending Centres we believe it is an investment in your and your family’s financial future… an investment that needs to be protected.

45% of uninsured Canadians included life insurance among their top five financial priorities and 21% ranked it in their top three.

76% of parents said they worry about their family’s financial situation in case of their death.

Mortgage Protection Insurance protects your investment while helping secure your family’s financial well-being in the event of the death of you or your spouse. Should this happen, the mortgage on your home would be paid off, allowing surviving family members to:

  • use other existing insurance to carry on with life
  • maintain their lifestyle
  • recover from your loss

The mortgage insurance offered through Dominion Lending Centres has some great features that traditional bank mortgage insurance doesn’t provide. This includes portability. When it is time to renew your mortgage you won’t lose your coverage (or have to re-qualify) no matter how many times you change homes or lenders in the future. Moreover, premiums don’t increase with changes in health or as you get older.

In addition, Mortgage Protection Plan includes two vital insurance products for your mortgage protection: Life Insurance and Total Disability Insurance.

With this coverage in place, you can protect your mortgage not just in the event of death, but also if a serious accident or illness leaves you unable to work. Most traditional term life policies only cover you in the event of death.


Vinil can walk you through the ins and outs of mortgage life insurance, the applicable costs, and provide you with instant coverage with money-back guarantee. This is in case you choose alternative coverage and cancel your policy within 60 days. Talk to him today, and make the simple choice to protect your mortgage with life and disability insurance.

Pay Off Your Mortgage Faster

General Vinil Sood 14 Dec

Mortgages in Canada are generally amortized between 25 and 35 year terms. While this seems a long time, it does not have to take anyone that long to pay off their mortgage if they choose to do so in a shorter period of time.

With some thinking ahead and a small bit of sacrifice, most people can manage to pay off their mortgage in a much shorter period of time by taking positive steps such as:

Making mortgage payments each week, or even every other week. Both options lower your interest paid over the term of your mortgage. It can result in the equivalent of an extra month’s mortgage payment each year. Paying your mortgage in this way can take your mortgage from 25 years down to approximately 21.
When your income increases, increase the amount on your mortgage payments. Let’s say you get a 5% raise each year at work. If you put that extra 5% of your income into your mortgage, your mortgage balance will drop faster without feeling like you are changing your spending habits.
Mortgage lenders will also allow you to make extra payments on your mortgage balance each year. Just about everyone finds themselves with money they were not expecting at some point or another. Maybe you inherited some money from a distant relative or you received a nice holiday bonus at work. Apply this money to your mortgage as a lump-sum payment and watch the results.

By applying these strategies consistently over time, you will save money, pay less interest and pay off your mortgage faster!


Fixed vs Variable Rate

General Vinil Sood 7 Dec


Fixed Rate

Fixed rate mortgages often appeal to clients who want:

-Stability in their payments

-Manage a tight monthly budget

-Financially conservative

For example, couples with large mortgages relative to their income might be better off opting for a fixed rate. This will offer the peace of mind a variable rate may not bring.

Variable Rate

A variable rate mortgage often allows the borrower to take advantage of lower rates. The interest rate is calculated on an ongoing basis at a lender’s prime rate minus or plus a set percentage. For example, if the prime rate is 5.5%, the holder of a prime minus 0.5% mortgage would pay a 5.0% variable interest rate.

Have a discussion with your mortgage professional to ensure you fully understand the risks and rewards of each type of mortgage.

Mortgage Renewal

General Vinil Sood 2 Dec

By omitting proper consideration at the time of renewal, Canadian citizens lose thousands of extra dollars every year. Nearly 60% of borrowers simply sign and send back their renewal that is first offered to them by their lender. Shopping for a more favorable rate, may save thousands of dollars throughout the mortgage term.

Homeowners should never accept the first rate offer from their existing lender. Without any negotiation, simply signing up for the market rate on a renewal is unnecessarily costing the homeowner a lot of money on their mortgage.

Generally, it is a good idea to start shopping for a new term between four and six months before your current mortgage expires. Many lenders send out your renewal letter very close to the time that your term expires. This does not give you ample time to arrange for a mortgage term through a different lender. This means that you need to be tracking your own mortgage term timeframe and know when it is time to start shopping for a good mortgage renewal rate.

Before you ever hear from your lender about renewing your mortgage term, have a licensed mortgage professional shop around for you. You will be amazed at what they can accomplish on your behalf!

Your mortgage is one of your most significant expenses. For this reason, it is imperative to find the best interest rates and mortgage terms you possibly can. By shopping around at renewal time, you can save substantial amounts of money over the life of your mortgage loan. Don’t be one of the 60% who just sign their renewal letter and sends it back. Use the services of a licensed Dominion Lending Centres mortgage professional to ensure the lenders compete for your business.