In British Columbia, BC mortgages is simply any financial obligation taken out by an individual to borrow funds. It’s a loan agreement that is secured on real property and is typically paid back with the name of the property. The most common kinds of mortgages in British Columbia include: first lien, land trust, limited trust, and variable rate mortgages. Most people have heard of fixed rate mortgages, as they’re very common and are usually offered at low interest rates. However, there are several different kinds of loans available in British Columbia.
First lien British Columbia mortgage pre-approved or mortgage pre-approval is a type of mortgage that you can apply for without a credit check. With a first lien mortgage, the buyer puts up their property as collateral, meaning that if they don’t pay off the loan, the bank doesn’t get their investment. This can be a good option for buyers who own lots of property but might not be able to qualify for the best rates. However, like a lot of loans, it can be a risk because if you don’t pay off the loan, the bank can have legal recourse against you. To find out more about first lien British Columbia mortgage pre-approved mortgages, contact a British Columbia mortgage broker.
Land trust mortgages are a type of mortgage that works much like a conventional trust, in that the buyer puts property into a trust. With a land trust, the buyer can legally claim the property as his or her personal property, even if the seller defaults on the loan. Unlike a conventional mortgage, however, land trust rates are often very expensive. If you’re thinking about purchasing a house with this type of mortgage, contact a British Columbia mortgage broker to learn more about how it works and to find out what kinds of rates are available.
Another option is to use an existing house as security for a mortgage. Your real estate agent can give you information on any properties that are currently available with this option. You’ll likely be able to find some great deals on British Columbia mortgage rates if you look hard enough.
Your situation will help determine the best options for you. You may need a large amount of cash in order to purchase your new home, so getting a fixed rate is probably your best option. Or you may be able to find some great mortgage rates if you use a second property as a form of collateral. Whatever your situation, you should be able to find something on the internet.
Regardless of what kind of mortgage you choose, remember that you will probably pay less than you would if you bought a new house or a flat. Your mortgage payment could be significantly lower, depending upon which type of mortgage you opt for. British Columbia mortgages are easy to find, but they’re not so easy to research.