Fixed Rate Mortgages
Fixed rate mortgages offer a fixed interest rate for 1-7, and 10-year terms and from time to time 15 and 25 year terms. Choosing a longer term gives you the security of knowing that your interest rate and payments won’t change during the term you select. Some fixed-rate mortgages provide various pre-payment options and flexible re-payment terms.
Open mortgages allow you to payoff your mortgage at anytime without incurring any pre-payment penalties. These types of mortgages consist of fixed rate mortgages, variable rate mortgages, and home equity lines of credit.
Variable Rate Mortgages (VRM)
This interest rate can fluctuate up or down depending on the Bank of Canada Prime Rate. Payments remain the same, but as the Prime rate increases or decreases, the portion that goes towards the principal and interests changes within the fixed payment amount.
Adjustable Rate Mortgages (ARM)
Like the VRM, this interest rate also fluctuates depending on the Bank of Canada Prime Rate. ARM payment fluctuates along with the Prime Rate; as Prime Rate increases or decreases, so will your mortgage payments.
Cash Back Mortgages
Enables you to get a percentage of your mortgage back in cash at the start of your mortgage.
Home Equity Lines of Credit
This type of product is registered against your home as a collateral charge. You are given a limit of how much you can borrow against the value of your home. Interest is only charged on the outstanding balance. You have the ability of securing several different terms under this one product. Many people have this product for its flexibility.
It is the second lien registered against your property. It is a great way to utilize the equity in your home in situations where you do not meet bank underwriting requirements.