There are several different mortgage options to choose from, depending on what works best for you.
Insured (High Ratio) Mortgage
An insured mortgage means that your down payment is less than 20% of the property’s value (all down payments must be a least 5%). With this smaller down payment, you’re required to have mortgage insurance to protect lenders from losses that may occur if payments are missed.
With an insured mortgage the insurance premium is added to your mortgage payments however the tax on the premium isn’t – which means you need to pay the taxes up front.
Uninsured (Conventional) Mortgage
An uninsured mortgage means that your down payment is 20% or higher, therefore making mortgage insurance not mandatory. With an uninsured mortgage, interest rates sometimes are increased, and qualifying details may differ from those with an insured mortgage.
Open mortgages allow you to pay your mortgage back in-part or in-full at any point without penalty. This option is great if you’re looking to sell quickly.
Fixed-rate mortgages are great if you want security and stability in your payments as the interest rate remains the same during the term. With the locked in rate your payments are consistent making it easier to plan ahead. However, the interest rate on fixed-rate mortgages are typically higher than a variable-rate mortgage.
Variable-rate mortgages are a flexible option as they are fully open and offer great repayment options. You can increase your payments or make a lump sum anytime without penalty. However, since your rate fluctuates based on the current prime rate, your monthly payments can change.
Home Equity Lines of Credit
Home Equity Line of Credits (HELOC) allow you to borrow when you need it and only pay interest on what you use. A Copperfin home equity line of credit allows you to re-access the equity in your home without having to register for a new mortgage.
A new home is not only exciting, but a lifelong investment – so don’t rush it. Be sure you are getting the right mortgage that suits your needs with the help from our expert Advisors, book an appointment today!