Choosing a Calgary mortgage is an important decision that can affect your entire life. Fortunately, there are many options available to you. You should be aware of the differences between long-term and short-term mortgages, and how these different types of mortgages affect your finances. Also, you should know how to choose a mortgage broker, as well as the different types of banks and credit unions that offer mortgages.
Whether you’re in the market for a mortgage, a home equity line of credit or just want to save money on your bills, a credit union may be the right choice for you. You can get better rates, lower fees and better customer service from a credit union. However, you need to know the differences between a credit union and a bank.
Credit unions are not-for-profit organizations owned by members. They’re not as profitable as big banks, but they have a mandate to serve their members. The board of directors is elected by the members.
Credit unions focus on member benefits. They can help you achieve your financial goals and can invest in your business. Credit unions also offer lower fees and higher savings interest rates. They can also rebate interest you pay on your RRSPs and savings accounts.
Whether you are looking for a full menu of financial products and services, a simple account or just an easy way to pay your bills, there are plenty of options for Calgary bank accounts. Some banks excel in one or two categories, while others offer a comprehensive selection of products. Choosing the best bank for you involves a bit of research.
Generally speaking, the best bank for you will depend on your personal preference. If you prefer physical branch locations, you may want to choose a bank that has a few in Calgary. If you prefer to conduct business over the phone, you may want to choose a bank that has more than a few branches.
HSBC offers strong banking products and services. They are headquartered in Vancouver and have branches across British Columbia. In addition, they are a member of the Canadian Payments Association, which is an association of banking, financial services and payment companies. HSBC banking is available online, over the phone and in a variety of locations across Canada.
Getting a mortgage can be a complicated process, but a reputable Calgary mortgage broker can make the process easier. A broker has access to many different lenders, and can help you find a suitable mortgage loan for your needs.
A good mortgage broker should know about the latest and greatest mortgage products available. They also have local contacts to help you with the purchase of your new home.
A good mortgage broker can save you thousands of dollars over the lifetime of your mortgage. A broker can also provide you with an overview of the mortgage process and explain your next steps.
A mortgage broker will also be able to recommend the best type of mortgage for your needs. This includes fixed-rate, varying-rate, or a combination of both.
Long-term vs short-term mortgage lengths
Whether you are in the market for a home, refinancing your mortgage or planning on investing, it’s important to understand the differences between long-term and short-term mortgage lengths. Long-term mortgages provide more protection against rising interest rates, but may come at a price. Shorter-term mortgages offer lower interest rates, but can also mean more frequent requalification and higher monthly payments.
Among Canadians, the most common term length is five years. This length works well for most homeowners.
The long-term mortgage may be the best choice for homeowners who want to lock in a lower rate, but don’t necessarily want to renew the mortgage each and every year. A long-term mortgage also offers peace of mind. A long-term mortgage will give you the freedom to pay off the mortgage early. This can be useful for homeowners who are thinking about selling their home, or for first time homebuyers who want to lock in a low interest rate.
First-time home buyer’s tax credit
Purchasing a home can be a costly endeavor, but it can be made easier with help from government tax credits. A number of provinces and cities offer programs to help first-time homebuyers. For example, Alberta has a few programs available to help low-income buyers.
First-time homebuyers who purchase a qualifying home can receive a tax rebate of up to $5,000. In addition, buyers can recover the federal part of HST. The tax rebate is based on the income tax you paid on the purchase in the year you purchased the home. In 2021, the maximum credit will increase to $15,000, due to new legislation.
Homebuyers can also take advantage of the Goods and Services Tax Credit. This is a tax rebate for 5% of the federal sales tax paid.