- Split-Term Mortgage This type of mortgage splits your mortgage into 5 parts. For example, a $150,000 mortgage could be slit into five $30,000 parts with terms negotiated in 6 months and 1, 2, 3 and 5-year terms.
- Self-directed RRSP Mortgages Self-directed RRSPs offer a variety of investments not usually available under other RRSPs. One of these options includes mortgages. Self-directed RRSPs that have been designed to hold a personal mortgage must be administered at arms' length from the homeowner.
- Capped Rate Mortgage This type of mortgage offers a lower short-term rate with long-term security. If rates are up at the time of an adjustment, you never pay more than your initial capped rate. You always benefit from the best rate. Finding the Right Mortgage for You It is important to remember that the right mortgage for you should take both the long term and the short term into consideration. There is so much to take into consideration when selecting the right mortgage for you. Buying a home is one of the biggest, most important decisions you will ever make. Finding the right mortgage for you is an important part of this decision you are making.
Begin by considering your mortgage needs. This will depend on your personal situation and what you want from a mortgage. Buying a house is a very big decision. Get guidance from a professional.• Fixed Rate Mortgage Fixed rate mortgage is a conventional type of mortgage. You can buy a home with as little as a 5% down payment. You can use this type of mortgage to finance up to 75% of the value of the mortgaged property. A fixed rate mortgage is one where the interest rate is fixed over a period of time. This period ranges from 6 months to 25 years. As time passes, more of your mortgage payment goes toward the principal and less of the payment goes toward interest. This type of mortgage gives you the security of knowing your interest rate over a fixed period of time. You can increase your payments without impacting the interest you are paying. For some people, this means they sleep better at night.• Variable Rate Mortgages in Toronto - A fixed rate mortgage has fixed payments but your specific interest rate will fluctuate with changes in interest rates. If the rate goes down, ore of the payment goes towards the principal and if the rate goes up, more of the payment goes towards the interest. A variable rate mortgage is offered at the prime rate less 0.25% and it is adjusted every month in relation to interest rate movements. If risk is not an issue for you, a variable rate mortgage is the way to go and here's why. Consumers are better off, on average, financing a mortgage with a short term floating interest rate.
