Motusbank Reviews, Ratings And Fees January 2021

Mortgage A mortgage is a secured loan that is typically used to buy a home or property. Most mortgages have a loan term between 1 and 5 years with an amortization period of 20 to 30 years. Secured home equity line of credit A HELOC is a revolving credit that is secured by your home equity. A line of credit is great for emergencies as you can draw upon it whenever you need and you only have to pay interest on the amount you use. Like a credit card, you may use it again and again up to its credit limit, so long as you make your payments. 

A fixed mortgage works best for those who like financial predictability and low risk. With a fixed mortgage rate your interest rate remains the same throughout your mortgage term. Similarly, your payments will remain the same no matter how the interest rate may be changing. A variable mortgage rate fluctuates with the prime rate, which can affect the amount of interest you end up paying. For example, if the interest falls, you end up paying more on the principal and less on interest. Moreover, the amount you pay each month will vary based on the interest. As such, some months you may have to pay more than other months. 

In general, when applying for a mortgage you will have to provide the following information: 
Personal Information

• Proof of identification
• Proof of address

Employment and Income Verification

• Proof of income
• Payslips
• T1 tax forms
• NOA
• Letter of employment

Basic Financial Information

• Bank account information
• List of your assets and liabilities

Down Payment Confirmation

• Savings or statement of investments form the last 90 days
• Proof of sale – of the existing property
• Withdrawal from RRSP through the Home Buyer’s Plan

Property Details

• MLS listing
• Description of property
• Purchase and sale agreement
• Property tax estimate