There are a handful of basic
mortgage types that suit Canadians in many different life phases
and circumstances. The Lending Team can help you determine
which solution is right for your situation.
Fixed
Rate Mortgage - Scenario
No. 1
Jennifer and Sheldon are about to embark on the biggest
purchase of their lives: their first home. They’ve
scrimped together a modest down payment and while they
know their monthly budget will be tight, they’re
about to start shopping for a mortgage. They want to
get the financial part over with quickly: there are fun
things like new paint colours to think about.
Like most Canadians and the majority
of first-home buyers, Jennifer and Sheldon have a low
risk tolerance and will be better suited to the certainty
of a fixed rate mortgage.
Ask yourself these questions:
- Do you like knowing what your
mortgage payments are going to be each month?
- Do you want to avoid the need
to consistently watch rates?
If you answered "yes" to
one or both of these questions, a conservative Fixed
Rate Mortgage may be a wise choice for you.
Variable Rate Mortgage - Scenario
No. 2
Friends Roger and Daniel think this is the time to join forces and buy that investment property they’ve always talked about. Roger's got some bonus money banked to cover any vacancies that may arise, and Daniel knows he's got an influx of cash coming from his business. They know that revenue property has some risks but they are prepared for the long-term rewards.
People with a flexible budget and
an interest in watching market conditions like Roger
and Daniel may be able to take advantage of a faster
repayment plan through a Variable Rate Mortgage.
Ask yourself these questions:
- Are you interested
in watching market conditions?
- Can you handle sudden rate increases
that could also significantly increase your payment?
- Are you willing to accept some
risk in exchange for an opportunity to pay off your
mortgage faster?
If you answered "yes" to
these questions, a Variable Rate Mortgage might best
suit your needs.
Lines
of Credit (HELOC)
Lines of Credit may be an option if you like
the idea of paying your mortgage at your
own pace. A Line of Credit lets you determine
your own monthly payments -- as low as interest
only, or as much as you want. A Line of Credit
allows you to use the equity in your home
to borrow money. As your mortgage balance
decreases, your available credit increases.
Use this extra cash to achieve your dreams:
do renovations, travel or assist family.
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