Hello Branislav, When a bank denies a deal for the 5 year mortgage there is little chance that they will approve a 1 year term . The qualifying income needed for a 1 year term is actually higher than a 5 year term. 5 year mortgages are qualified on the 5 year rate any shorter term is qualified on the bank of Canada rate of 5.19%. If it is a matter of qualifying for the mortgage then the best bet is to look to another lender and ask for an exception to the qualifying ratios. As a Mortgage Agent I can check with the 25 lenders that I deal with to see which Lender will approve the deal if you like. Please let me know if I can help. Contact me at any time. Abraham Niyazi - Mortgage Agent - Lic#M08010640 - Centum One FInancial Corp - Lic 10758. Cell: 416-993-4082 Toll Free: 1-866-728-3708 http://www.centum.ca/abraham_niyazi/ I deal with 25 Banks/Lenders and can do mortgages across Canada except Quebec." 01:20pm Feb 8, 2011

I doesn`t matter if you break 3 years later or 6 month before the term ends. You will pay the same mortgage penalty, 3 month mortgage interest or Interest Rate Deferential penalty.

A little clarification to mortgagepro`s comment. It is true that you will pay a penalty regardless of the months remaining but the penalty could be drastically different between a 3 year and 3 month remaining term. There are 2 calculations that the banks use for penalties. 3 months interest calculation and Interest Rate Differential IRD. If the conditions are right 3 months penalty for 3yr or 3month term should be close. If the conditions are such that an IRD will be used to calculate your penalty then you are looking at a huge difference in penalty. Talk to your bank and they will calculate the costs involved for you. My suggestion is to consider a port of your mortgage. A port is where you move the mortgage term rate and balance to the new property with no penalties. You can straight port it (no change in any mortgage particulars). You can port increase where you need more money (term remains the same, higher mortgage amount and the rate is blended with todays rate). Or do a port reduction (same term, same rate, smaller mortgage amount required for new house, some penalty may apply but much less than a complete break). One last thing I should mention. Once you bank gives you your options please contact a Mortgage Agent to do some further calculations for you. Many people have benefited from switching to a new bank for their new home. This is especially true today where rates are much lower than any mortgage started over 2 years ago. In the end what you end up doing with your mortgage must depend on how much money you will save going forward. That should be your #1 priority, mortgages are very expensive over time, you have to find ways to minimize your costs. I would be happy to consult with you if you have any questions. Abraham Niyazi - Mortgage Agent - Lic#M08010640 - Centum One FInancial Corp - Lic 10758. Cell: 416-993-4082 Toll Free: 1-866-728-3708 http://www.centum.ca/abraham_niyazi/ I deal with 25 Banks/Lenders and can do mortgages across Canada except Quebec.

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What i am wondering, is which would work better in the long run, going with a 25 year mortgage and putting a lump payment down during the year or just going with a 15 year mortgage without a lump payment? with regards to interest savings, etc.... is it wiser to just pick the 15 year mortgage or is it wiser to go with a 25 year mortgage (paying it off in 15 years) and doing lump payments, which i think go directly to the principle, correct? i've heard that with a 25 year mortgage, only 20% roughly goes towards the principle initially, whereas a 15 year mortgage, roughly 50% goes towards the principle. if i'm planning to spend the same amount towards the house on a yearly basis, is going with a 15 year better then a 25 year with regards to interest savings?

I think you should go with the 15 year mortgage, you will save so much in interest it is well worth a larger monthly payment.

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You bought a condominium 2 years ago for $210,000, with a down payment of 30 percent. you took out a 7.20 percent, 5-year canadian mortgage amortized over 25 years. here is what i did: i(weekly)=0.0680% pv=147,000 fv=0 n=1300 (25x52) .:pmt=170.36 am i supposed to use pmt now and try to find a new 'n'? maybe 'n' is not even required in the first calculation. i am not sure. it seems easy but i can't seem to figure out how to do it. some help will be appreciated.

You could shave a few years off. However, most lenders won't let you make weekly payments. They want the full amount each month. You could achieve a similar result by adding about 8% to each monthly payment.

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I mean if you buy a $150,000 house (zero down payment) and pay $900 a month for 25 years, isn't that $270,000 paid before the house is paid off? so at the end of the mortgage you've paid almost double?

When you add in interest you are correct - and that doesn't even include taxes and insurance.

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I have a home equity mortage that i am paying $100/month in interest - $1200 for the year. i am thinking about paying this off, but is that better in the long run? am i better off using the interest for tax reasons or should i pay off the loan? how much does the interest actually help out? i am in the 25% $33,951 – $82,250 tax brackett, whatever this means.

If your tax deduction is the only reason you have this balance, you are really wasting money. For every dollar in interest you pay, you only get 25 cents back as a tax refund. The math doesn't work. Pay it off and be done with it.

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After signing he went on vacation and never came back to the same state that we live, i have been asking for years to have my name taken off. this year he decided that he no longer wants to pay on the house even though he was renting it out and using that to pay off the mortgage. i am only 25 and it has ruined my credit. please help me is there anything that i can do or sue him for.

His name will come off now so it will be yours. I would just hang on to it and take up the responsibility of getting it rented out. Use craigslist to find tenants and legalzoom.com for tools for landlord, like authorization to check credit. (People with bad credit are bad tenants). You can also get a lease form there.

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My mortgage is $160,000 at 6.625 apr, for 25 more years. i shared my plan with friends, to invest the money. it started an interesting conversation. i have clear title to the lot selling. i plan to stay in my home a minium of two years, possibly longer.

This is a question for a tax attorney and a financial advisor. With a 1031 you are going to have to make a like kind exchange so you can not use the money tax free to pay down your existing mortgage, you would more then likely have to buy another piece of land or something similar to what you are buying. I would take the money and invest it something that you are getting a return on because equity in your house does not have a rate of return, it grows at the same rate no matter how much you have in it. If you can find an investment where you are getting a rate of return better then 6.625% then you are going to be ahead. Also the mortgage interest is tax deductible so your effective rate after the tax deduction is somewhere around 4.625%. You should look into a book called missed fortune by douglas andrew, it has some interesting concpets reguarding this issue.

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I currently owe 25,000 on my mortgage with 16 years to run. i also save 200 per month in an isa at approx 5% interest (present balance 6000) how long will it be before my isa is enough to clear my mortgage? i know i could over-pay the mortgage instead of saving but i want to save 'just in case' thanks.

Sorry, this depends upon interest rates, and what type of ISA (cash or shares) You could try asking your ISA provider to calculate this for you, but nobody knows how interest rates and the stockmarket will behave in the future

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Exactly ten years ago you entered into a $100,000 20-year fixed rate mortgage to finance an investment property. the terms of the mortgage were 6% p.a. compounding monthly with monthly repayments. (a)what is the amount of your monthly repayments? (b)for tax purposes, how much interest did you pay to the lender over the last year? (c)now suppose that you decide to pay half the monthly repayment that you computed in (a) every two weeks. how long will it take before the mortgage is paid off? (d)a colleague tells you that he prefers shorter-term mortgages (10-15 years) to longer-term mortgages (25-30 years). he says this is because you end up paying a lot more interest to the bank over 30 years than over only ten years. is this true? does this mean that short-term mortgages are better value than long-term mortgages?

a. $716.43 b. $3.56 c. Laziness kicking in. d. It's true that you end up paying more interest total. But you do get a lot more time to pay it off, so the monthly payments are smaller. It's a tradeoff.

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I currently have enough money saved for a house. currently people tell me to borrow a mortgage. so i am earning interest at 6% now, but to get a 15 year mortgage at 7.25%. is this wise? in the long run i was told i would gain more tax benefit because i now get a tax deduction off the interest so instead of losing 7.25% , i am only paying 4.5% in interest assuming you are in the highest bracket because of the tax savings. is this logic correct? and with new home i also get property depreciation because i have a home business? thanks for your help dob-ulgco , that is true, but what are the benefits in numbers? also, are there brokers who can split their commission with the borrower? where can i get the lowest rate now for the mortgage

Pay cash for the house and save yourself a few thousand in closing costs. After closing open up a home equity line of credit at no cost and borrow against it as needed to provide your tax shelter.