Financing and Mortgage Information
Open Mortgages
Open mortgages allow you to make payments towards your mortgage above and beyond the agreed regular payments. A closed mortgage, may limit your additional repayments, but usually carries a lower interest rate than an open mortgage of a similar term. Open mortgages are generally not available for longer terms. If it's likely you'll make only regular payments and perhaps limited prepayments, the closed mortgage is usually preferable.
Convertible Mortgages
A convertible mortgage also typically offers a lower rate than an open mortgage of the same term. A convertible mortgage allows you to change to a closed term or another convertible term, without interest penalty. Some conditions apply if changing from a fixed to a variable rate.
Fixed Vs. Variable Interest Rates
With a Fixed Rate mortgage, your interest rate remains constant to the end of your term. With a Variable Rate mortgage, the interest rate fluctuates with money market trends. Your actual payments generally don't change during your term. But, if rates go down, more of your payment is applied toward the principal. If rates go up, more of your payment is applied toward repaying the interest.
Fixed Rate Guarantee
At the time you apply for a mortgage, any fixed term rate will be guaranteed for for a specified period. If rates go down before you get your mortgage, the lower rate will be applied to your mortgage. With a pre-arranged mortgage, or often if you switch your mortgage to another lender will, guarantee a fixed rate mortgage rate for up to 120 days.
Below Prime
Often when you buy your first home, or trade up to a bigger one, your budget can be tight. That's why lenders offer Below Prime Mortgage. Not only is the rate usually the lowest posted variable mortgage rate, it's also guaranteed to be at least 1/4 of 1% below our prime rate. And, at a time when rates are declining, at below prime rate Mortgage could help you lower your mortgage costs.