Financing your home - a mortgage primer

Philip Cross, general manager of Scotia Bank wrote an interesting piece in the Free Press about "Financing your home" in the Turks and Caicos Islands. He stated a few basic mortgage facts that is essential in your decision making if you are considering taking out a mortage in the TCI.

1. 
   
   "Qualifying is step one: Before you consider the type of mortgage you need, you first have to qualify. This usually requires three things: (a) a down payment - as little as 5% of your home's purchase price. (b) the ablility to pay the closing cost, such as the solicitor's fee, etc. (c) a regular income that allows you to cover the monthly payments.;
   
2. Save money with a shorter loan period;
   
3. Factor in the risk of variable rate mortgage;
   
4. Mortgage process differs when building a home: If you are buying an existing home, you'll most likely need a typical residential mortgage. But if you plan to build, the mortgage process often unfolds in stages, as most people need to fund construction as it happens."