Fixed Rate Mortgages
Choose a lender
Variable Rate Mortgages
Cash Back Mortgages
The primary advantage of fixed rate mortgages is that the interest rate is set for the whole term of the mortgage. A fixed rate mortgage offers you the protection of knowing exactly how much principle and interest you will be paying on your mortgage during the term you selected. If you think interest rates will rise, you may want to lock into a longer term fixed rate mortgage but if you think that the rates may fall, a shorter term may be the best choice for you.
Keep in mind that with a fixed rate mortgage you are locked in for the selected term, and that you may incur a penalty to break your mortgage.
If you are considering a fixed rate mortgage keep the following options in mind to help to reduce your mortgage faster.
Choose a lender who offers you the flexibility to:
- Change your payment frequency
- Increase your monthly payments
- Make lump sum payments at no additional charge
These options will help you to pay down your mortgage faster and are called pre-payment privileges. Most of the lenders we deal with, offer the above options, let us help you choose the best package for your needs.
Depending on the level of risk you are willing to take, a variable rate mortgage can save you money while keeping your options open during times of fluctuating interest rates.
With variable rate mortgages, your mortgage payment could increase or decrease depending on fluctuations in the Prime rate. With most variable rate products you can lock in at our discounted rate (not bank posted rates) anytime during your term. Variable rate mortgages are recommended for those that have room in their monthly budget to handle an increase in the Prime lending rate.
With a cash back mortgage the lenders are basically lending you money up front. They charge a higher interest rate and will require that you pay it back if you payout the mortgage early. The cash can be used for purposes other than down payment.
These mortgages can come in handy for those who are having difficulty saving the required 5% for a down payment. The criteria for cash back mortgages is very strick, you must have good credit and job stability to qualify. They will also require that you have additional funds on hand for closing costs usually 1.5% of the purchase price.
A flex down mortgage allows for 100% financing by borrowing down payment from another credit source or unconventional source of down payment. The insurer will charge an extra premium but this allows for best rates and terms, whereas a cash back mortgage does not.
A mortgage based on the amount of equity in your home. Usually up to 75% (in some cases only 65%) of the value of your property and most suited for those people who do not qualify for a traditional bank mortgage for credit or income verification reasons.
If you have good credit you will typically qualify for a fully discounted interest rate. If you have some credit issues the lender may charge you a higher interest rate to mitigate their risk. However, one of my greatest strengths is that ability to negotiate rate decreases even with damaged credit.
Please contact me for further details on specific mortgage products.