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What is Mortgage | |
Types of Mortgages | |
Pre-Approved Mortgages | |
Mortgage Features |
First Mortgages
The first debt registered against a property in which the amount does not surpass 75% of the assessed lending value of the property is referred to as First Mortgage.
Open Mortgages
A mortgage that can be prepaid at any time prior to maturity, without a prepayment penalty.
Closed Mortgages
A mortgage that cannot be prepaid, renegotiated, or refinanced prior to the expiry of the term, except with an interest penalty or other cost.
Fixed-Rate Mortgages
In this type of mortgage the interest rate is locked for the term of mortgage. Your monthly payment (of principal and interest) remains the same throughout the term. Generally, in a low rate market, people take a longer term, fixed-rate mortgage for protection from upward fluctuations in interest rates.
The Variable Rate Mortgage
A mortgage in which the interest rate fluctuates during the term and either payments or balances outstanding are adjusted accordingly.
Equity Mortgages
A mortgage which is assessed on the equity of the home (market value minus the mortgage amount).
The Convertible Mortgage
With this mortgage, you'll enjoy the same peace of mind as a closed mortgage, plus the flexibility to convert to a longer closed mortgage at any time without penalty. If you think rates will drop, this will allow you to wait until you feel they have hit bottom, or if rates rise, you can lock in.
