Understanding Mortgage
Finding the right mortgage is just as important as finding the right home. Ontario buyers can choose from several mortgage types depending on their needs and financial profile.
Fixed vs Variable Rates
- Fixed: Stable payments over the term
- Variable: Payments may change with prime rate shifts
Open vs Closed Mortgages
- Open: Flexible prepayment options, but higher rates
- Closed: Lower rates, but limited prepayment flexibility
Term Length and Amortization
Choose a term (commonly 5 years) and amortization (up to 25 years). Discuss with a mortgage advisor to understand what works best for your situation.
Pre-Approval Benefits
Getting pre-approved shows sellers you’re serious and locks in an interest rate for up to 120 days.
Whether you’re buying your first home or refinancing, it’s important to compare lenders and understand your total borrowing cost before signing.