Why Private Mortgages Are As Important As Other Mortgages?

Rent to own home is a unique concept of making use of a property of your desire. It is the concept of leasing that binds rent to own homes. Rent to own home may seem very much like mortgage agreements, but they are different in principals from mortgage agreements. Rent to own home Toronto is the most suitable to people who are in need of a house with little finances compared to the purchase price of the property. In a rent to own home Toronto setting, you only have to pay a little percentage of the total cash price of the property you are about to lease. It is the down payment and is generally around 20% of the total cash price.

How A Rent To Own Home Toronto Deal Works

You sign an agreement with the owner of the property who is also called the Lessor. The agreement includes all the terms and conditions such as the term of the lease, the down payment, the periodical payment and the terms of non-payment or default of payment by the lessee. The lessee is the person who is opting for the rent to own home property. You can move into the property right after the agreement is signed between you and the lessor. The ownership of the house passes to you only at the payment of the last instalment, unlike in a mortgage.

The unique feature of the rent to own home Toronto contract is that you have the option of opting out of the deal. It means you can reside at the property for a tenure you wish to and can decide if you really want to purchase the house because there are many chances where you may first want to know if the property is suitable for you in various criteria.

A rent to own home Toronto offers you many benefits than other forms of purchasing properties. It involves less initial investment from your side. You are allowed to move into the house as soon as you enter into the deal. It has much lesser formalities than a mortgage transaction. It is a win-win for both the lessor and the lessee. Most importantly you are free from the market price fluctuations of the property as the cash price of the property is set in the initial terms of the rent to own home deal.

Read more

To Know About Mortgage Renewal Is As Important As To Know About A Primary Mortgage

Mortgage renewal, as it literally means, is the process through which one can renew their mortgage. It is a new agreement to either to continue to extend or to come to whole new terms with your mortgage provider. So, if your mortgage period has come to an end, and balance payable to your mortgage lender still remains, renewing your mortgage comes into play. And so, through a mortgage renewal, you can come to new terms with your mortgage lender depending on your financial position and other responsibilities. This process is very simple, as it only involves the approval of the renewal contract byyou. Mortgage renewal is similar to a car insurance, wherein you only receive the papers and there exists a continued process of payment, which is the premium in case of car insurance and loan installment in case of a mortgage.

 

We do provide some tips for the mortgage holders to follow, who plan for mortgage renewal

-Review your mortgage renewal options much ahead of your maturity period. It means start preparing for a new mortgage and check for what all options are available to you in case you opt for a mortgage renewal. Also, most of the lenders are ready to start your renewal process 4 months(120 days) before your mortgage’s maturity date.

-While you check your options, also assess your financial goals which you want to attain in the time to come. It means, throughout the period of your mortgage, a lot could change. So your original plans for which you had chosen the former mortgage plan could change by now. So you are advised to chose the renewed mortgage plan wisely by keeping in mind all your financial goals.

-Keep a check on the mortgage rates of the market. Law says that your current lender has to send you a mortgage renewal invitation at least 21 days before the maturity date. Most lenders do send the renewal slips sooner than when 30 days remain for your maturity. So you have additional time to assess the rates, policies, and maturity period of all the options available to you.

Opting for mortgage renewal with your current lender is better if there aren’t any groundbreaking differences in your choice and in the options given to you by your current lender.

Read more