If you’re applying for a mortgage and want to better understand the terms, keep reading!
While there is no published research on this fact, the generally accepted measure in the market is that around 65% of Canadians will break their mortgage early during their lifetime. Just like nobody goes into a marriage expecting to divorce, nobody goes into a mortgage expecting they will need to break it early. In this article, we discuss some of the reasons that would result in you breaking a mortgage early and how to handle it.
If you're currently comparing mortgage options, it's essential to understand key terms that apply to you. In this overview, we explore what these terms mean for you if you choose to break your mortgage early.
If you aren't good at putting excess savings aside, committing to saving more forces you to do it and monthly payment increases may be your best bet. However, the downside to a higher payment is that your lender may report this new figure to the credit bureau, which then impacts how much you qualify for on future loan applications.