Learn about Mortgages

A mortgage that has restrictions as per the principal repayment, and when you can pay it off. Usually has better mortgage rates when compared to an open mortgage. This is because the lender is sure they will earn as per the contract terms and there are penalties if paying off before term ends. This mortgage can only be renegotiated, prepaid, or refinanced in accordance with its conditions.

Get peace of mind knowing that your interest rate won't rise during the term you choose. A fixed rate mortgage delivers stability, and with it, peace of mind. You can be sure that your interest rate won't change for the duration of the term once you've chosen it. The term length options are 6 months, 1, 2, 3, 4, 5, 6, 7 or 10 years.

The ability to pay off the mortgage during the term is the major distinction between the two. Your mortgage broker tries to assist if you're unsure about which mortgage package is best for you. If you're considering buying a property, learn about the distinctions between these two types of mortgage programs, compare open and closed mortgage, and seek the advice of your mortgage broker. 

A mortgage that has flexibility to make free principal repayments on your mortgage at any time. beyond your fundamental payment schedule. Make sporadic prepayments whenever you wish without incurring any fees. You can switch to a closed mortgage whenever you'd like,  if you realize that you're not taking use of the opportunity to make additional payments.

The mortgage amortization period is based on the belief that the interest rate and monthly payments won't change. Since the mortgage is paid off over a longer period of time with a longer amortization period, the mortgage payments are reduced. In contrast to a shorter amortization term, a longer amortization period will need more interest payments throughout the course of the loan because less principal will be paid off with each payment.

Many homeowners believe it is best to continue doing business with the bank or lender who issued their initial mortgage. This is frequently not the case. It is recommended to have your mortgage broker check the current lender products, and see if there any better rates available. This is done at no cost to you,  the borrower. Reach out to us today to have a comprehensive review of your mortgage options!

With a variable rate mortgage, the interest rate might alter in accordance with the lender's prime lending rate. If interest rates fall, you'll pay more toward your principle and less toward interest on a variable mortgage, but your monthly payment amount will remain the same.

When your interest rate is fixed with a fixed rate mortgage, you can plan your finances with confidence. Your interest rate and your set monthly payments would remain the same even if interest rates increased.

A convertible term mortgage allows for the extension of some shorter-term mortgage to longer terms. It is usual for the interest rate to vary once the mortgage is converted or extended. The lender will often provide the new interest rate for the extended duration.

The most common mortgage. This is a version of a variable rate mortgage. Your normal mortgage payment fluctuates in tandem with fluctuations in the lender's prime rate. As the prime rate rises, your mortgage payment may go up or down. This is the kind of mortgage you have if you noticed an increase in your payment during the most recent rate increases.

The main difference between an Adjustable Rate Mortgage and a Variable rate is, in a Variable the monthly payment stays the same. But the allocation towards interest and principal may differ. While in an Adjustable Rate, your mortgage payment will fluctuate as interest rate's with your lender change.

The trigger rate is the point at which the monthly mortgage payments are insufficient to pay the interest that has accumulated. The variable rate's interest rates have risen so high that the entire payment is allocated to paying interest and nothing to cover the principal. In other words the principal is not being paid down.