Canada Home Mortgage Rates
* 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 amortization's 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 Interest 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 Interest 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 Amortization's
There are now amortization's 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 tool.
If you are unsure of what is best for you, please give me a call and we can determine what product best suits your long term goals for your family and the future.
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