Types of Mortgages

There are three general types of mortgage products. Regardless of what you are using the mortgage for (purchasing a new home, refinancing, etc) or what specific program you qualify under, your mortgage will always be a variable rate mortgage, fixed rate mortgage or a line of credit.

Variable Rate Mortgages

Variable rate mortgages fluctuate with the banks prime lending rate. Generally you will received a discount off of the prime rate based on what is happening in the market at the time you take the mortgage out. Today, the lowest mortgage rate for variables is very low, which makes the product very attractive and many clients are choosing to go this route. However you do need to keep in mind that the rates will not stay where they are, they will fluctuate as the prime lending rate does.

Is a variable rate mortgage for you?

Do you have room factored into your budget if your mortgage payments were to go up?
Do you follow the mortgage rates in the news to know if or when you should lock into a fixed term product if that is your plan?
What would your mortgage rate be if you chose to lock into a fixed term at some point? Is that discount off of the posted bank rates in line with the lowest mortgage rates available in the market today? If it's a certain discount off of the going rate, is it in line with what is being discounted today on that particular product? (Some lenders offer good discounts off of prime on the variable portion, but don't offer any discount off the posted bank rates should you choose to lock into a fixed term mortgage down the road.

When it comes to variable rate mortgages, we believe they are a great option for the right client, but you do need to know and understand the product to know what you are really getting at the end of the day; that's where we can help.

Fixed Term Products

Fixed term mortgages are those which have interest rates that are locked in for the full term of the mortgage. When you shop for a fixed term mortgage product, the things to look for are the interest rate and pre payment privileges (as well as fine print regarding penalties should you want to payoff early). We have terms as short as 6 months and as long as 25 years, and we can work with you to find the right term for you based on your specific situation. We compare mortgage rates from 50 different lenders to get you the lowest mortgage rates in Canada!

HELOC (Home Equity Line of Credit)

Our HELOC Mortgage is the next generation of mortgage, a hybrid of sorts. Within your HELOC you can hold fixed terms, variable terms and lines of credit individually or all at the same time! Many clients also choose to simply hold one line of credit that holds it all, so they have the option of interest only payments. This is the ultimate in flexibility when it comes to mortgage products and is available to most clients who are eligible for conventional financing (more than 20% equity in their property).