If you are a first time home buyer and would like to know more on your home purchase consider that when searching for a mortgage you must first determine your end use for your property. Here are the different mortgages that will suit your lifestyle, choose what best fits what you’re looking for in a mortgage by going through each section and choose one option for each. Then you can contact your local XPX.ca Mortgage Broker / Specialist refer to this page and they will find the correct lender for your specific mortgage.
Section I Residential mortgages are divided in two categories:
High Ratio Mortgages - When your down payment is 20% of the value of the property or less. (Must be insured by Canada Mortgage and Housing Corporation (CMHC) or Genworth Financial Canada, premiums are determined by loan to value ratio)
Conventional Mortgages - When your down payment is 20% or more of the value of your property. (Usually does not require mortgage loan insurance (CMHC or Genworth))
Section II Closed Mortgages - Does not allow any prepayment or early repayment of the mortgage, except on the sale of the property before the term ends. (These are becoming less popular; today home buyers seek flexibility of open mortgages)
Open Mortgages - Borrower can prepay all or part of the principal amount at any time with or without notice or penalty. Specific conditions are outlined in the contract.
Basic payment options include:
Double up - Doubling the dollar amount of scheduled principal and interest payments (regular scheduled payments)
Lump sum options - prepay a certain amount of principal, often worked with the double up option.
No cost switching of payment frequency - option to switch scheduled payment from monthly to semi-monthly, bi-weekly or weekly.
Skip payment option - option to skip one regular payment (or 2 bi-weekly payments etc.) without defaulting the mortgage
Fully Open Mortgages - Allow principal payments to be made in any amount, anytime, in addition to regular payments. Usually have short terms of six months to a year and interest rates are higher than closed mortgages. (Great for buyers who plan on quickly re-selling the property or those buyers who will run into a lump sum of money)
Section III Fixed Rate Mortgages - Interest rate is determined and remains until the end of the term. Fixed rate mortgages with longer terms are popular when interest rates are low and an expected interest rise is near.
Variable Rate Mortgages - Also known as adjustable rate mortgage, the interest rate charged on the mortgage will fluctuate with market interest rates.
Convertible Rate Mortgages - is a variable rate mortgage with option to lock into a fixed rate mortgage at anytime without penalty.
Section IV Special Features
Cash Back - Borrow cash based on a percentage of the mortgage principal. This can range from 1%-7%, but cannot be used as a down payment.
Assumable Mortgage - Allows the purchaser to take over the mortgage already existing.
Portable Mortgage - Allows you to transfer your current mortgage to your new property. (Subject to appraisal and credit approval)
Air miles or bonus points - Some lenders offer flyer miles or other bonus incentives)
Step Mortgages - Additional to your mortgage, a line of credit will be attached in one package. It’s money when you need it, great for consolidations or future investments.
Section VNiche Products
Vendor Take-back - Also known as seller take-back mortgages, the seller will agree to hold the mortgage. A second mortgage may extend incase the first mortgage cannot cover the equity. The vendor can sell the mortgage to a finance company at a later date.
Blanket Mortgage - Single mortgage registered against two or more properties. Great for financing cottages and lenders appreciate the additional security.
Collateral Mortgage - Persons with business loans can use there home as additional collateral on top of the business and its assets.
Reverse Mortgage - Also known as a reverse annuity mortgage; this is not a typical mortgage. Only available to homeowners with a large amount of equity where owners can convert equity into monthly income streams. This mortgage is great for seniors with little or no mortgage.
Click below and discuss these options with an XPX Mortgage Specialist near you. Refer to this page and they will find you the best suited mortgage that fits your needs.
Refinance your mortgage so you can save money, reduce your monthly payments and even gain some extra cash in your pocket.
Reasons why you will refinance your existing mortgage:
Save money by getting a lower rate, fewer fees or more features to repay faster
Get out of a fixed rate mortgage and into a variable rate mortgage and visa versa
Combine your 1st mortgage with your 2nd mortgage into a single monthly payment
Pay off your high interest credit cards and loans
Consolidate all of your bills into one easy payment
Lower your monthly payments on your existing mortgage
Arrange your mortgage to fit your budget and lifestyle with flexible terms and amortizations up to 40 years
Manage your budget and financial goals by fixing your monthly payments
Borrow up to 100% of the value of your home
Please click the link below to start your application or to arrange a free consultation with one of our Mortgage Specialists in your community. XPX.ca Mortgage Specialists will give you a free assessment, just tell them the reason why you want to refinance and they will find you the best mortgage that suits your needs. With over 40+ lenders to choose from our XPX.ca Mortgage Specialists will find a mortgage for every situation and budget.
In mid-March, however, the Royal Bank reported that home ownership costs have risen to the highest point since 1990.
That year marked the “peak of the housing bubble,” it said.
However, the bank was optimistic the current situation should ease. “Going forward, falling mortgage rates, cooler forecast house price gains and decent income growth should all lead to improved affordability across most markets,” it said.
High Ratio Mortgages - When your down payment is 20% of the value of the property or less. (Must be insured by Canada Mortgage and Housing Corporation (CMHC) or Genworth Financial Canada, premiums are determined by loan to value ratio)
Niche Products
