Inflation Hedge Mortgage
Let us show you how to stay ahead of rate increases, pay less interest and pay off your mortgage sooner. As a free service to our clients who employ this program, we will even adopt your mortgage, so we take all the guess-work out. Ask us how the Inflation Hedge Mortgage can work for you!
Low Ratio Mortgage
A Low-Ratio Mortgage is one where the down payment is equal to 20% or more of the property’s value/purchase price. A low-ratio mortgage does not normally require mortgage loan insurance.
High Ratio Mortgage
A High-Ratio Mortgage is one where the borrower is contributing less than 20% of the value/purchase price of the property as the down payment. High-Ratio Mortgages must be insured through Canada Mortgage and Housing Corporation (CMHC) or Genworth Financial, the two mortgage insurance companies in Canada.
An Open Mortgage allows the mortgagor to prepay all or part of the principle amount at any time without penalty. Open Mortgages usually have shorter terms of six months or one year, but can include some variable rate/longer terms as well. Interest rates on Open Mortgages are typically higher than on Closed Mortgages with similar terms.
Closed Mortgages do not provide for payout before maturity. A lender may permit a payout under certain circumstances but will levy a penalty for doing so. Most lenders allow a Closed Mortgage to be PrePaid up to a set maximum per year without penalty.
Fixed Rate Mortgage
The interest rate is determined and locked in for the term of the mortgage. Lenders often offer different prepayment options allowing for quicker repayment of the mortgage and for partial or full repayment of the mortgage.
Variable Mortgage Rate (VRM) / Adjustable Rate Mortgage (ARM)
These types of loans differ from a fixed rate mortgage in that the interest rate changed on the loan may be changed during the term of the mortgage. Generally, these loans are initially set up like a standard loan, based on the current interest rate. The loan is reviewed at specified intervals and if the market interest rate has changed, changing either the size of the payment or the length of the amortization period (or a combination of both), the lender then alters the mortgage repayment plan.