Canadian Mortgage Rates and Products

Today there are many different fixed rate products available to Canadians. Terms are available from 1 - 25 years. The most common is the 5 year term, but depending on your home ownership goals and the current economic forecast, it may not be the right choice for you.

There are penalties associated with getting out of all of these products, but at times, it is much less than you would expect. For instance: You decide you want the security of a 15 year mortgage rate, but are realistically concerned that if rates drop after 6 or 7 years, you'll be locked into a higher rate for the full 15 years. For a 3 months simple interest penalty, you can get out of that product and go ahead and lock into a lower rate fixed product without any hassles.

There are many different options for all scenarios. It is very important to have a Mortgage Plan to take advantage of unique strategies to fulfill your dream of being mortgage free, sooner, and for far less than you would expect. Please contact me today to discuss various possibilities. 

• Interest Only FIXED PRODUCTS
  There are many products available now if you're interested in keeping your monthly payment as low as you can.  With the extended amortizations available now, it is quickly taking place of interest only, but they are still offered by a few lenders.
  
  
• Interest Only HELOC'S [HOME EQUITY LINES OF CREDIT]
  There are several lenders that will offer HELOC's.  Most lenders will require that a portion of your mortgage amount be locked into a fixed portion and the balance can be in the form of a HELOC.  If you are looking for a full HELOC registered against your property, you should prepare yourself for additional fees.  Most lenders do not  fairly compensate mortgage brokers for these types of deals or will enforce a commission claw back so you should be prepared to pay a broker fee when asking for this type of product.
  
  
• Variable Rate Mortgages (VRM)
  There are several lenders with many desirable products. There is a certain type of consumer that best suits a VRM, and others that don't. A new young family with a set income may not have the flexibility to handle the ebbs and flows of VRM'. They are best suited for people with a certain amount of equity in their home OR strong investment portfolio' and growing net worth. To be able to fully take advantage of a VRM, one must be able to weather the storm of the ups and downs of Prime and Bankers Acceptance rates.

• OPEN Variable Rate Mortgages
  This product is basically the same as the VRM above, however it is considered "open".  If you pay out this mortgage early, there may be a penalty of $500 or up to 2 months interest associated with it.   Some lenders will not have any penalty at all.  Again, as with the HELOC, lenders do not fairly compensate mortgage brokers for this product and you should be prepared to pay a broker fee when asking for this product.

• Extended Amortizations
  There are now amortizations available up to 40 years in Canada.  This allows people to buy more house for their money.  I do not recommend people getting a 40 year amortization once they find their 'forever' home, but for the properties you do not plan to pay off, it is the perfect too.
  

Alternative Products for Non-Conventional Borrowers

I have access to a line of products that are for the following people:

• No Income Qualifying Products - for people who cannot verify their income, but have at least 5% down for purchases, or at least 5% equity in their existing residence for a refinance.
• Slow / Bruised Credit - some slow or late payments showing on their credit bureau over the last few years, and cannot qualify through conventional banks.
• No Down Payment - People with stable incomes and good credit, but have not managed to save for a down payment.
• Bankruptcy - you can purchase your property today, even if you are one day out of discharge, with 25% down. Call me today to learn more.
• Lender Insured products that allow you to only put 3% down now, instead of 5% down.
• Self Employed? There are several products available for stated income for people who fall under this category.