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MORTGAGE LENDING
In layman’s terms, a mortgage is the financing of real estate on agreed upon terms and conditions between the lender and the borrower. There is a lot involved with attaining and maintaining a mortgage, starting with the type of mortgage the borrower is looking for. There are several different types of mortgages such as:
CONVENTIONAL/LOW RATIO
: the down payment is equal to 20% or more of the property’s value or purchase price.
HIGH RATIO
: the down payment is less than 20% of the purchase price. This mortgage type must be insured
against payment default by a mortgage insurer. (CMHC, Genworth Financial Canada or
Canada Guaranty)
FIXED RATE
: the interest rate is locked in and does not change for the term of the mortgage.
VARIABLE RATE
: the interest rate may fluctuate throughout the term of the mortgage.
OPEN
: allows you to pay any amount, including the full balance, at any time throughout the term of
the mortgage, without financial penalty.
CLOSED
: requires the borrower to pay a set amount at a set time and incur a financial penalty should
they pay more or change the terms of the mortgage prior to term expiration.
Some of the conditions attached to a mortgage include the length of time, usually in years, that the mortgage terms and conditions must be met, the interest rate to be paid on the loan and even the date of the month that each payment must be made. A mortgage is a very detailed agreement that requires a lot of behind-the-scenes administration to ensure that the terms and conditions are satisfied by the involved parties. In the example of a Private Mortgage (an alternative source of financing away from banks; usually reserved for borrower’s with credit, employment or income issues) it may be a more viable option to have a mortgage servicing team or a Mortgage Administrator handle the legwork once the loan has been funded. From the monthly collection of payments, updating of renewal information, mailing of important documents, follow-up on late/delinquent accounts and much more, it is important to have a safe and secure means of mortgage administration that use the same tools as Mortgage Investment Corporations and Mortgage Syndication’s here in Canada, to service the loan as per the set guidelines.
Using our regularly upgraded state-of-the-art technology, our qualified and accountable team of lender administrators provide protection and stability to the lender/investor. Once you advance the funds, you can rest assured that the maintenance and follow-thru will be taken care of by a well-seasoned and very professional Mortgage Administrator.
What NOT To Expect:
When it comes to the administration of loans and mortgages, the Mortgage Administrator Inc. is entrusted with important, confidential and highly sensitive documents and personal information. As we are a fully licensed and insured company that has successfully met all of the requirements and conditions of the MBLAA and FSCO, we do NOT take this lightly. Therefore; there are some tasks that the Mortgage Administrator Inc. CANNOT and WILL NOT do:
- Take funds through Broker fees when Investors/Lenders are working with outside Brokers
- Release any information unless expressly directed to do so in writing by our clients
- Share Investor/Lender contact information OR use it without their written consent
Let The Mortgage Administrator Work For You!
Our goal is to streamline and make comfortable the entire client experience.