Whitby, Oshawa, Bowmanville, Clarington, Courtice Ontario Home Loan

Finance Information

How much home can you afford? Use our finance center to learn about your loan options below. There are several loan programs available, and depending on your credit history, there is bound to be one that is perfect for you. Here are a few examples of the most popular programs offered today:

Fixed-Rate Mortgage

The fixed rate mortgage is the most popular mortgage program in use today. Fixed-rate loans offer the borrow a fixed interest rate for the life of the loan, typically 15 to 30 years. Borrowers have peace of mind knowing that their monthly payment will not change over time. Conventional fixed-rate mortgages have underwriting requirements established by the Lender , and require certain down-payment and debt-to-equity ratios to qualify. Fixed-rate loans are especially attractive to buyers who plan to stay in their home for more than a few years.

Variable Rate Mortgage

With a Variable Rate Mortgage, the interest rate changes periodically, and payments go up or down accordingly. Rates are tied to an index that reflects the cost of money at any given point in time. Generally speaking, lenders charge a lower initial interest rate for the Variable than for the Fixed Rate mortgage. If you are expecting interest rates to decrease in the future, or if you are trying to maximize your purchase power today knowing your income will rise in the future, then this loan may be right for you. Variable rate loans are attractive for buyers who expect to be in the home for a short period of time.

Closed and Open Mortgages

A closed mortgage agreement does not provide for payout before the maturity date. A lender may permit early payout of a closed mortgage under certain circumstances but will charge a penalty for doing so.  An open mortgage permits for prepayment/payout in full at any time without penalty.

High Ratio Mortgage 

A mortgage loan that exceeds 80% of the lesser or the appraised value or purchase price of the property.  This mortgage must be insured and borrowers must pay an application fee and the insurance premium (which may be added to the mortgage) to the insurer. 

 

 

 

Contact Information

Photo of The Mullin Lloyd Team Real Estate
The Mullin Lloyd Team
Keller Williams Energy Real Estate, Brokerage
420 Green Street, Suite 105
Whitby ON L1N 8R1
(905) 430-2390
Fax: (905) 430-2301