Why should I compare mortgage rates?
Not all mortgage rates are created equal. Mortgages can be varied with the terms and conditions, in addition to the interest rate. Each mortgage caters to an individual’s particular needs. If you want to find the best mortgage for you, you need to compare all of your options.
Should I get an open or closed mortgage?
‘Closed’ mortgages have lower rates when compared to their ‘open’ counterparts, and are more popular. Closed mortgages can come in a fixed form and variable form, but place a restriction on the amount of principal you can pay each year. If you pay off the principal in a closed mortgage before the set term, you will face a penalty, such as a 3-month interest charge.
‘Open’ mortgages on the other hand, allow you to pay off your entire mortgage balance at any time throughout the term. The drawback is what you pay for premium for that option. If they are planning to move in the future, or if they are expecting a lump sum of money through an inheritance or bonus, that would allow them to pay off their entire mortgage.
What is the difference between a variable vs. fixed mortgage rate?
Fixed mortgage rates are more popular and represent 66% of all mortgages in Canada. With a fixed mortgage you can “set it and forget it” as you are protected against interest rate fluctuations, so your payment stays constant over the duration of your term.
Variable mortgage rates are typically lower than fixed rates, but can vary over the duration of the term. Variable mortgages are prone to market behavior (via the prime rate) which affects your payments. That can change your time. A fixed mortgage offers stability and your payment will remain the same each month, but that is the reason why.
How often are mortgage rates updated?
The mortgage rates are being updated today. Our mortgage rates are sourced through two methods: Mortgage brokers can log in and update their rates instantly; and we source rates from Canadian banks.
What are prepayment options?
Prepayment options outline the flexibility you have to increase your monthly mortgage payments or pay your mortgage principal as a whole. The monthly prepayment option is a percentage increase on your original monthly mortgage payment. For example, if your monthly mortgage payment is $ 1,000 and your prepayment allowance is 25%, then you can increase your monthly payments up to $ 1,250. The lump sum prepayment option on the other hand, applies to the original mortgage amount. So, if your lump sum allowance is 25% prepayment was $ 100,000 mortgage amount, Then You can pay $ 25,000 off the principal every year.
What is the mortgage ratehold?
The rate hold clause refers to how long you can be in your life. The renewal date is the date on which the term of mortgage expires, not to be confused with the amortization period. So, for example, if you have a 5-year term on your mortgage, and a 90-day rate hold, then within 90 days before the expiration of the term, you have the option to lock in the current mortgage rate.