RESIDENTIAL MORTGAGES

• CONVENTIONAL MORTGAGE:
  • DOWN PAYMENT : at least 20%
  • INTEREST RATE : Either on a fixed or variable interest rate basis.
  • THE COST : lowest carrying costs (because they do not have to be insured against default
  • YOU ARE RESPONSIBLE FOR: The cost of having your property evaluated by an independent appraisal company and the legal fees related to registering the mortgage and completing the purchase.
• INSURED MORTGAGE:
  • also known as National Housing Act or High Ratio mortgages
  • DOWN PAYMENT: requirements are lower than conventional mortgages - as low as $0 !
  • Availability: New homes and condos also Re-sale homes/condos
  • YOU ARE RESPONSIBLE FOR: Appraisal and legal fees and application fee for the insurance.
• CLOSED MORTGAGE:
  • THE INTEREST RATE: is locked in for the full term of the mortgage and you must pay compensation, known as breakage costs, to the mortgage lender to renegotiate the interest rate or pay off the balance prior to the end of the term.
  • THE INTREST RATE: for closed mortgages are generally lower than for open mortgages and first-time buyers are often more secure knowing exactly how much their mortgage payments will be over a set period of time.
  • TERM: terms usually are from six months to 35 years.
• OPEN MORTGAGE:
  • THE INTEREST RATE: for open mortgages are generally higher than for closed mortgages because of the added flexibility. Open mortgages often offer greater flexibility than closed mortgages since they can be repaid either in part or in full at any time without breakage costs.
  • TERM: Usually are six months or one year.
• CONVERTIBLE MORTGAGE:
  • A Convertible mortgage is a fixed-rate mortgage which gives you the same security as a closed mortgage, but which can be converted to a longer, closed mortgage at any time without penalty. If you think rates may drop, this allows you to wait until you feel the time is right to lock in your rate.
• VARIABLE MORTGAGE:
  • With a variable-rate mortgage, mortgage payments are set for a term of one to two years or longer even though interest rates may fluctuate during that time. If interest rates go down, more of the payment is applied to reduce the principal; if rates go up, more of the payment is applied to payment of interest. Variable-rate mortgages may be open or closed. A variable-rate mortgage provides the buyer with the flexibility to take advantage of falling interest rates and to convert to a fixed-rate mortgage at any time.
• SECOND MORTGAGE:
  • A second mortgage provides for the difference between the down-payment the client can afford and 25%, 35% up to 95% of purchase price. A second mortgage can be used for a number of other purposes, too. Such as: Debt Consolidation, Home Renovation / Improvements, Immediate cash needs Types: Residential, Commercial, Construction, Industrial.
• POINT TO CONSIDER:
  • Closed mortgages are usually the better choice for buyers who suspect that interest rates may be on the rise and for those who are not planning to move in the short term. They are often considered ideal for first-time homebuyers, particularly in the early years. Open mortgages are normally suggested to buyers who are planning to move in the immediate future or who believe that interest rates are going down. Types: Residential, Commercial, Construction, Industrial, Interest only mortgages