Choice of Mortgage Products
Not every fixed-term mortgage is the same. Fixed-term mortgages offer a fixed interest rate for 1,2,3,4,5,7, 10 and from time to time 15 and 25 year terms. Choosing a longer term gives you the security of knowing that your interest rate and payments won't change during the term you select.Some fixed-rate mortgages also provide various paydown options and flexible terms; the secret is knowing the fine print of every mortgage product out there and that's where we can offer our expertise. Our mortgage consultants can help you find the best fixed-term mortgage product for you.
The open mortgage
You would choose this mortgage if you were planning to pay back the full mortgage within 6 months to 1 year. If you were expecting a windfall of money or were planning to move again, an open mortgage is the way to go because the banks won't penalize you for paying them back.
Variable rate mortgages
Some users choose an adjustable rate mortgage (ARM), where the interest rate changes on usually a monthly basis based on current rates. This might sound risky, but recently it's been one of the best ways to go. Some ARMs even keep the payment the same during the term - Mortgage for Less can make this product available to you.
Cash back mortgages
Put thousands in your own pocket with this mortgage. Many lenders offer promotions that give you up to 5% of the mortgage amount back, in order to encourage you to do business with them. We can search the market and find the mortgage products that will put money in your account instead of the bank's!
An equity mortgage is a mortgage loan based on the amount of equity (market value minus mortgage amount) in your home. These are can be worth up to 75% of the value of your property and are most suited for people who don't qualify for traditional bank mortgages for credit or income verification reasons.
A second mortgage is a great product to consider in order to avoid the high cost of a Canadian Mortgage and Housing Corporation (CMHC) high ratio mortgage. Second mortgages usually carry a much higher interest rate than first mortgages because they involve higher risk and less equity.
50 / 50 Mortgage
If you are not sure whether to choose a variable rate mortgage or a fixed rate mortgage, a 50/50 might be the right product for you.
This product eliminates the biggest dilemma facing mortgage borrowers in today’s economy because 50% of your mortgage will be based on a variable rate product and 50% will be based on a 5 year closed term.
The two portions operate independently of each other, so you can choose to make prepayments on the fixed portion, which has the higher interest rate, or you can choose to pay down the variable rate portion aggressively, which in turn further minimizes future interest rate risk.
With a 50/50 mortgage, you limit your risk and get the best of both worlds.
Secured lines of credit - Greater than $75,000
If you need instant cash for home renovations, to buy a car, to purchase investments, or for any other worthwhile purpose, a secured line of credit can be a great way to raise the capital. Mortgage for Less can provide a line of credit quickly and at the best rates in the market. The amount of credit available through one of these products is usually based on 80% of the value of your home, but we have lenders that can also provide up to 85% of the value of your home.
Be aware of mortgage promotions!
There are constantly new mortgage promotions coming and going. Because we are mortgage specialists and deal in the business every day our mortgage consultants are up to date on all the new promotions. We can easily determine which ones will actually benefit you and which ones are gimmicks. It's important to have an outside advisor to determine this for you.
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