Toggle Offset Mortgage: One Step in the Home Buying Timeline

The home buying process lasts anywhere between four months to a year. Qualifying for a mortgage is one box you have to check off. Attending home showings, working with a real estate agent and getting a home inspection are others. One home loan at your disposal is the Toggle Offset Mortgage.

Toggle Offset Mortgage

A traditional mortgage is still en vogue. The two most popular home loans are the fixed and variable rate. Lenders have become more creative in the last decade. They have developed hybrid options such as the Toggle Offset Mortgage. This one takes from the best of the fixed and variable rate home loans. The goal is to leverage interest rates when they are low, which the variable allows. The fixed-side acts like a safety net in case the rates increase.

Offset accounts get linked to the both the fixed and variable segments that you fund. The advantage is the ability to move funds so you benefit from the lowest rate. You can make additional payments, which lowers the principal. In turn, it reduces the amount going toward interest.

A variable rate mortgage allows the homeowner to benefit 100% from decreases in interest rates. The Offset Toggle Mortgage does not, but you still save through offsetting.

If this mortgage sounds interesting, our financial professionals are available to outline more details. 

The Home Buying Timeline

Getting approved for a home loan takes one to two months. To speed up the process, apply for pre-approval, which takes one to two weeks. If you work with a real estate agent, set aside one to two weeks for interviews. Before you start visiting home showings, make a list of desirable home features. Knowing the features you want in your home helps you stay focused. You may fall in love with the first home you visit, or it may take four months. This part depends on your persistence, research and communication with your agent.

Once you find your dream home, make an offer. Then, start negotiating. A negotiation lasts a few days depending on the seller’s motivation.

After you have found the home and receive financing, a home appraisal is next. Home appraisals take one to two weeks.  Then, have the house inspected. This is how you find out if there are any serious structural issues. Before you close the deal, it is wise to know if major repairs are necessary.

Toggle Offset Mortgage Conclusion

The home buying timeline requires patience, organisation and persistence. Among the several decisions you make is qualifying and picking out a home loan. One candidate is the Toggle Offset Mortgage. For more information about its benefits, contact our Mortgage House team.