Mortage questions

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This is likely the largest financial transaction of your life. It is important to have as much knowledge as possible to make an informed decision. We have compiled a list of ten basic mortgage questions. Ask your lender these questions and sit back and listen to the answers. It probably wouldn't hurt to write down the answers.

1 How is the interest on my calculated? What is the difference between monthly and semi-annual compounding?

2 Is the mortgage portable? Is the mortgage assumable?

3 Am I still responsible if someone assumes our mortgage?

4 Is this a collateral mortgage or a conventional mortgage? What is the difference?

5 What are mortgage interest rates based on?

6 When the Bank of Canada changes interest rates, how does this impact my mortgage?

7 What penalties would I pay if I wish to move to another Bank or payoff this mortgage?

8 Is there a way to avoid or reduce mortgage penalties?

9 How are these penalties calculated? What does interest differential mean?

10 Is there a method to make this mortgage tax deductible?

Courtesy of Monster Financial