When you complete the purchase of a property, the completion date can typically be in the middle or towards the end of the month. The interest on your mortgage loan begins to accrue from the completion date until the end of that month. This accrued interest is often due as part of your first mortgage payment, which is normally the month after you complete.
Here's an example to illustrate this:
Let's say you complete the purchase of your property on June 15th. The interest on your mortgage loan will accrue from June 15th until June 30th. Your first mortgage payment, due in July, will include the interest accrued during that half-month period in June, as well as the regular monthly payment for July.
This results in a higher initial payment because it covers the interest for the period between the completion date and the first regular payment date.
It's important to note that this initial interest amount will depend on the size of your loan, the interest rate, and the number of days between the completion date and the end of the month. The subsequent monthly payments will then be based on the regular payment schedule as outlined in your mortgage agreement.
