Types of Mortgages we offer

Mortgages come in a variety of shapes and sizes, and are often called by different names or brands by various lenders. While there are nuances and variations in terminology, mortgages fall into one of these 3 categories. 

1. Fixed Rate Closed Mortgages

If consistency in your mortgage rates over the term of the your mortgage is important to you, closed mortgage interest rates are typically lower (and do not change during your term). 

Features of Fixed Rate Closed Mortgages

  • Consistent payment during your term

  • Often comes with lower interest rates

  • Limited flexibility with paying down mortgage faster

  • Cannot change interest rate during term of mortgage

  • Best for: buyers who want predictability and don’t want to watch interest rates during their mortgage term

2. Variable Rate Closed Mortgages

Variable mortgages are flexible and can fluctuate based on the Bank of Canada prime interest rate.  Variable rate closed mortgages provide benefits in low interest rate markets, and give you the opportunity to switch to a longer-term fixed-rate mortgage without penalty at any time in the future.

Features of Variable Rate Mortgages

  • Provide opportunity to take advantage of lower interest rates and switch to a closed rate without penalty

  • Offers lower interest rates than a fixed rate closed, or an open mortgage typically

  • Best for: buyers looking for the lowest possible rate right now, with options to 'lock-in' down the road, and buyers that are okay with possible fluctuations in their payments

3. Open Mortgages

If you are looking for flexibility with regards to paying off your mortgage, consider an open mortgage. No penalty is incurred if you decide to make lump sump payments or pay off your mortgage in full; however, this flexibility comes often with a higher interest rate – which can result in higher monthly payments.

Features of Open Mortgages

  • Maximum flexibility; you can pay your mortgage off in large sums, or in full without any penalty

  • Higher interest rate

  • Best for: those looking to pay off their mortgage as soon as possible, and without penalty

What Type of Mortgage is Right for Me? 

Choosing the right mortgage can be hard to do, but is very important as it can save you thousands of dollars. For more information and advice, please contact me today!