Whether you are looking for short term or long term, variable or fixed, open or closed, banks offer way’s to save on mortgages.
Clive McLean speaks about how if you’re looking to buy a home you should sit down with a mortgage broker or bank manager and get a fixed mortgage rate that lets you repay your mortgage in set monthly payments. Your payment remains the same over the course of your term (a closed mortgage rate), so even if rates go up, your rate will remain the same for the term you have selected, which allows you to budget.
With a variable mortgage rate, while the interest rate may change depending on the Bank of Canada’s prime rate, your monthly payment will remain the same for your selected term. The amount paid to the principal versus interest may change with fluctuations in the prime rate, plus your amortization period may vary and be longer if rates have risen or
shorter if rates have fallen, since the start of the term.
Fixed or variable interest rate mortgages can be paid weekly, bi weekly, semi-monthly and monthly.
Rapid pay down: most banks allow you to increase your payments.
Prepayment options: pay down a percentage of your original mortgage each year.
Looking for top dollar for your home? You need an experienced professional on your side.