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All mortgages are loans but they come in all different shapes and sizes.

Depending on the purpose, type, or qualifications each mortgage will look differently. All of these types and purposes will impact what the terms, rates, and conditions of the mortgage loan.

What you need is a solution for what you are tryng to accomplish.

 

Property Purpose

Owner Occupied property - This is the common reason for a mortgage. It's better to own than to rent, no? (read more)

Investment property (rental) - Many people are using the equity in their own homes to purchase a second property for additional long term income.

Vacation home (cottage) - Relax, you're at the lake. A vacation home is very similar to owner occupied and have the low rates. 

 

Lender Type

AAA Lender - These are your major banks, smaller banks, credit unions, smaller banks, trust companies, financial corporations. A mortgage broker has access to a wide swath of AAA lenders to ensure you receive the best product at the lowest rate.

Alternative Lender - Bruised credit? Non-standard income (i.e. self employed and write offs show low taxable income)? Alternative lenders offer great solutions to many Canadians. Terms are usually shorter around 1-2 years.

Private Lender - These are special purpse loans for a myriad of reason. (read here)

 

Mortgage Reason

Pre-approval - Find out what you qualify for and secure a rate hold. (read more)

Purchase - Buying a property and initializing a mortgage.

Renewal - Yes, you have to shop for a best rate again at the maturity date. A mortgage broker in on your side to help you secure the best rate again and again.

Refinance - A refinance is similar to a renewal but it adds new money to the balance. The reasons vary considerable such as debt consolidation, investment purchase, and renovation spending.

 

Down Payment

CMHC Insured (less than 20% down) - Saving for a down payment when you don't own a home already is difficult. With default insurance you can purchase with as little as 5% down. Qualifying is a bit more difficult because applicants must meet the insurer's guidelines. However, on the flip side, the mortgage rates are the lowest becuase treasuries of banks/lenders love bullet proof assets.

Low ratio conventional - You can save the insurance premium cost by putting down at least 20%. 

Bank of Mom and Dad - gifts are allowed, especially for owner occupied properties. This is happening more and more for young people today, probably becuase parents are happy to push the kids out. (read more)

 

Products Specific

Fixed vs. Variable rate - There are many factors to consider when choosing a term and rate. (read more)

Home Equity Line of Credit - borrow, pay down, reborrow, repeat. (read more)

Reverse Mortgage - There are now two lenders offering reverse mortgages in Canada to people over 55. The key benefit is always no mortgage payment. No, the bank doesn't own your home. It's only a loan otherwise it would be called Reverse Sale and Distribution of your Equity, or something like that. (read more

Construction Mortgage - Want to build a new house? Make an addition? A construction loan advances funds at different stages of the construction project as they can be verified complete.

Tax Deductible Mortgage - Income properties are tax deductible becuase its against an income generating investment. For your own home its really a just leverage. The fancy name for the formal strategy is Smith-Manoeuvre.

Low Rate, Poor Product - You can call this a No Frills product perhaps. Its a product that gives you a lower rate at the expense of the product features - such as a "sale only clause" or higher penalty costs (read more)

 

Other Solutions

New to Canada Mortgages - Looking to own a property as a permanent resident of Canada? (Read here)

Stated Income qualification - Business for self? If you show low taxable income on your T1 General you will have a problem with the banks.

Debt Consolidation - A property is always the best collateral for the lowest cost of funds. If you have unsecured debts at higher rates then a consolidation can make all the difference in freeing up cash flow and saving on interest costs.

2nd Mortgages - Sometimes it doesn't make sense to refiance the first mortgage. For example, if your first mortgage is default insured then this is a big benefit for receiving the lowest rates at renewal. Banks won't tell you this.

Commerical Mortgages - Simply mortgages for commerical properties. 

 

If you have a mortgage question, call us today! 

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