Flexible and Innovative Mortgage Solutions to Suit Your Needs
Sua Truong’s team will help you choose a wide range of mortgage solutions, flexible payment options and prepayment privileges to suit almost every lifestyle. We can access over 30 lenders across Canada with over 250 different mortgage products to choose from. Each has different options and features. Getting the lowest rate mortgage is just a small part of our job.
A mortgage 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 protection insurance.
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. These types of mortgages must be have mortgage protection insurance through Canada Mortgage and Housing Corporation (CMHC), Genworth Financial or Canada Guaranty; the three mortgage insurance companies in Canada.
An open mortgage allows you the flexibility to repay the mortgage at any time without penalty. Open mortgages usually have shorter terms, but can include some variable rate/longer terms as well. Mortgage rates on Open Mortgages are typically higher than on Closed Mortgages with similar terms.
A closed mortgage is a mortgage agreement that cannot be prepaid, renegotiated or refinanced before maturity, except according to its terms. Fixed rate mortgages fall under this category.
The interest rate of a fixed rate mortgage 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. Keep in mind that a very stiff penalty will be incurred in the event that you break or change the contract prior to the maturity of the mortgage term. The penalty is referred as the Interest Rate Differential (IRD).
Beware of how the lender registers the mortgage. There are two ways that a lender can register your mortgage. Either standard registration or collateral charge. Traditionally standard registration allows the consumer more control whereas collateral charge will relinquish the control over to the bank. Each has their pros and cons. Depending on your mortgage strategy, find the one that suits your future goals before making a commitment.
These types of loans differ from a fixed rate mortgage in that the mortgage rate may be changed during the term of the mortgage. Generally, these mortgages are initially set up like a standard loan, based on the current interest rate. The mortgage is reviewed at specified intervals and if the market interest rate has changed, either changing 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. In most circumstances, the prevailing interest rate is based on the government bank’s prime lending rate.