For most people, purchasing their home is the largest single financial transaction that they will make in their lifetime. Because there will be such heavy demands on their financial resources, the usual method of borrowing money to purchase real estate property is by way of a mortgage. The mortgage is a debt secured against real property. The Mortgagor, of the borrower, will borrow funds from the Mortgagee, the creditor to whom a mortgage is made. Sources of mortgage funds include:
Institutional Lenders, such as Banks, Credit Unions, and Trust and Mortgage Companies.
Private sources, such as small corporations and individual lenders, both related and unrelated.
Mortgage Brokers, whose role is to bring the borrower and lender together. Mortgage brokers will typically deal with a wide variety of lenders and so their services can vary with the needs of the individual client.

As a buyer, you should seriously consider taking advantage of the Pre-Approval services that most lenders offer. By being pre-approved for your mortgage, you can confidently write an offer on that special property that you have found and the Seller will take your offer much more seriously.

Terms of mortgages (the length of time the mortgagee will lend the money) typically vary from 6 months to 10 years during which time the interest rate is fixed. Amortization periods typically are in the 20 to 25 year range (the length of time over which payments have been calculated to fully pay out the mortgage). It is important to watch the fluctuations in interest rates for the different mortgage terms, and this is where a professional lender can give you the range of information you need to make the best choice for your financial situation.  Please see the table on the right for an example of the mortgage rates for various terms offered by the Bank of Montreal on December 10, 2008 (obtained from www.bmo.com ).

I can help you with recommendations on lenders and can arrange a personal introduction to the lender of your choice.