| Fixed Rate Mortgages |
a mortgage with a fixed interest rate for the
life of the mortgage. |
fixed monthly payments and interest rates
regardless of fluctuation in the market. |
equity building is slower because the first
few years of payments are applied toward interest not
principal. |
1 to 10 year fixed rates
Amortization: up to 35 years
|
| Variable Rate Mortgage (Virm) |
mortgage rate usually based on a predetermined
discount or premium from prime rate. Payments change or be
fixes as
prime changes. Some products may have a cap rate to
protect the rate from exceeding a predetermined amount.
Others may have a " teaser" rate in first 3- 9 months. |
initial Mortgage interest rates are lower,
usually when prime rate is low. Gives opportunity to build
more equity during times when prime is low. |
interest rate could ( prime) increase significantly during
the term. More of your payment will go towards
interest and less towards principle.
On an adjustable variable mortgage, your payments will
change according to the new adjusted rate. |
1 to 5 or 6 year term
Amortization: up to 35 years
|
| Conventional |
a mortgage where the amount financed is 80% or
less of the appraised value ( or purchase price) |
For Good Credit - No insurance fees from
CMHC or Genworth.
For Poor Credit - there could be a lender fee or admin fee
for the added risk
|
There are none
|
6 months to 18 years
Fixed or variable
amortization: 10 to 35 years
|
| Insured Mortgages Bank mortgages with
qualifying acceptable credit |
Also known as High Insured ration mortgages.
Amount being over 80% of the value or purchase price of home. |
down payment can be low as 5%
No Down
payment mortgages qualify
Allows people to purchase home
with minimal down payment |
Insurance fees applies. CMHM or Genworth
insurance premiums apply. Bank and Insurer must both approve credit.
|
6 mths to 18 years Fixed or variable
Amortization: 10 to 35 years
|
| Non Conforming High Ratio Mortgages For people
with challenged credit or that not meeting with Bank lenders and
or CMHC, Genworth, and AIG |
Mortgage designed for people who need a
conventional or high ratio mortgage but do not meet the bank
guidelines or that of the insurer |
Allows mortgages up to 90% financing for those
who cannot meet regular lending guidelines ** subject to
approval |
Rate premium depending on risk factor, amount of
down payment and type of property financed. Lending value
determined by the credit type
|
1, 3 or 5 year term Amortization:
10, 15, 20, 25, and 30 years |
| Private Mortgages |
Mortgages funded by private investors or private
institutions. These investors accept a higher risk and the
rate charged reflects this. |
Funds can be used for purchases, refinancing,
consolidations, power of sales.
Lending values vary according to location, urban and rural
areas.
Lending values can be as high as 80%, but generally between
65 to 75% of appraised value |
Rates vary from lender. Pre approvals are not
allowed. |
Terms is usually 1 year but can be renewed.
Amortization period is flexible.
Interest only payments most common |
