Mortgage Information
Making the decision to buy a new home is a big decision and an important
investment.
We recommend that before you start looking at communities,
showhomes, and floorplans, that you apply for a pre-approved mortgage.
This way, when you meet with any of Shane Homes' Area Managers you will
know what down payment you have available and the monthly mortgage payment
you are comfortable with. You can also secure your interest rate to protect yourself from a possible rate increase,
if the rate drops, you still get the lower rate!
Most financial institutions will offer this service at no charge and you
are under no obligation to accept their offer.
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Complete an online application for a pre-approved mortgage with
HSBC Canada. An HSBC Loan Specialist
will review your application and contact you within two business days to
communicate your approval status.
HSBC Online Mortgage Application
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Mortgage Calculator | Affordability Calculator
Definitions:
- House Price - Total purchase price of your new home.
- Down Payment - The amount you are going to give the builder as a down payment. The down payment is
set to default to 5% down payment since that is our minimum requirement,
although you can input a higher number if you have a greater down payment
amount. When you hear the term 'zero percent down' it means that builder's still
require a down payment but that you can borrow the down payment from a credit
card, loan or gift whereas you could not in the past.
- Annual Interest Rate - The annual interest rate you choose through your lending institution.
The interest rate is set to default at 4.45% since
that is close to the current 3 year interest rate offered to Shane Homes
customers through HSBC. You can chance this percentage if you have spoken to a
bank and have settled on a different interest rate.
- Term - The number of years over which you will repay this loan. The most common mortgage amortization
periods are 20 - 25 years.
- Mortgage Principle - Total mortgage amount based on the total house price minus the
down payment
- Monthly Payment - Includes principle and interest. The mortgage amount and monthly payment do not include
CMHC fees (applicable if you have a down payment less than 25% of the purchase
price).
Quick Tip:
Ask your bank about options of
cutting down what you will pay in interest on your home by choosing an
accelerated weekly or accelerated bi-weekly payment option.
Accelerated weekly and accelerated
bi-weekly payment options are calculated by taking a monthly payment schedule
and assuming only four weeks in a month. We calculate an accelerated weekly
payment, for example, by taking your normal monthly payment and dividing it by
four. Since you pay 52 weekly payments, by the end of a year you have paid the
equivalent of one extra monthly payment. This additional amount accelerates your
loan payoff by going directly against your loans principal. The effect can save
you thousands in interest and take years off of your mortgage.
The accelerated bi-weekly payment is calculated
by dividing your monthly payment by two. You then make 26 bi-weekly payments.
Just like the the accelerated weekly payments you are in effect paying an
additional monthly payment per year.
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