Flexible Mortgage Payment Options
Choose your mortgage payment option according to your budget and financial planning. You can choose quarterly, monthly, bi-weekly or weekly payments according to your lifestyle. There are also pre-payment options to reduce the amount of interest chargeable to you.
What prepayment options are available?
There are different kinds of pre-payment benefits depending upon your mortgage. If you choose a closed mortgage, you may pre-pay up to 10-15% of your mortgage value without paying compensation charges. If you have an open mortgage you can pay part or the full amount without any compensation charges.
Many mortgage options allow pre-payments which will eventually decrease your interest expense. The quicker you pay the principal, the less interest you will be charged with.
Mortgage Principal, Interest & Other Amounts Payable
When you take a mortgage on a home, the installment amount is deducted from your bank account automatically. This generally includes all the required payments. i.e. Principal, interest, and property tax.
The amount which you have originally borrowed less any repayments made towards it. This does not include interest amount.
The amount which the lender charges for lending you the money. It’s highest in the beginning and gradually decreases as you repay your principal amount.
Generally lenders prefer to receive the amount of property taxes (along with interest and principal) which are chargeable to home owner. The lender does this so if you are unable to pay this tax independently, then the municipality may charge lien on your property. This lien will supersede the payment owing to the lender.