If you are looking to purchase a home in Ontario, you have
come to the right place! Serving Ontario and the GTA for almost 20 years,
Canadalend has become one of the largest and most used brokerages in the
province.
We help clients with all types of income and credit to
secure mortgages for the home of their dreams. By bridging the gap between banks
and private lenders, we are able to obtain the best possible product – at the
best possible rate – for your unique situation.
Our unique access to large pools of banks, credit unions, and private lenders ensure that the competition is high for your business. We use them to work with you – not against you – to make that giant leap into homeownership a reality.
When the banks and private lenders compete, you will always win with Canadalend!
A Fixed Rate would keep the interest portion of your payments the same over the term of your mortgage whereas with Variable rates the interest portion fluctuates with the market.
For example, when interest rates are low, more of your monthly payment would go towards paying off the principal (the actual mortgage). If the rates were to then rise, more of your payment would slide towards the interest portion of the mortgage loan.
Amortization and Mortgage Terms
Amortization is the length of time it takes for you to pay off the full amount of your mortgage.
In order to pay off your mortgage, you must agree on what are called Mortgage Terms. Everything your mortgage contract outlines, including rates, type and payments, make up your Mortgage Terms.
These terms need to be renewed, so it usually takes multiple terms to fulfill your amortization agreement.
There are two types of mortgages that you can get – Open and Closed.
With an Open mortgage, you can pay extra money (without any penalties) in order to pay off the balance of your mortgage quicker, as well as the ability to renegotiate your Term before it is up.
A Closed mortgage limits the amount of extra money you can pay on top of your usual payments (without a penalty) but is great for budgeting. Your payment never changes, and it is usually at a better interest rate than an Open mortgage.
If this sounds complicated don’t worry, the experts at Canadalend can explain it all – in simple and clear terms – over a free consultation.
Down Payment and Other Costs
To avoid extra insurance costs from the CMHC, one should have a down-payment of at least 20% of the appraised value of the home. Not only will the mortgage amount be smaller, but your terms tend to be more favorable as well.
It might take a little longer to save, but in the end, you will save thousands of dollars. These savings can put towards covering the Closing Costs as well as the Land Transfer Tax that is necessary to finalize your home purchase.
| Client’s Current Mortgage | Canadalend.com Mortgage | Savings | |
|---|---|---|---|
| First Mortgage Amount | $500,000 | $500,000 | |
| Interest Rate | 4.99% | 2.95% | |
| Term (Years) | 5 | 5 | |
| Amortization Period (Years) | 25 | 25 | |
| Monthly Payment | $2,905.18 | $2,352.42 | $552.76 |
| Remaining Term (Months) | 24 | 60 | |
| Total Remaining Payments for 24 months | $69,724.32 | $56,458.08 | $13,266.24 |
*For representation purposes only. Rates subject to change without notice. This is an example of what we can do for you. New payment schedule based on a first mortgage of 2.95% on a 30 year amortization, 5 year variable. Terms and conditions apply. Subject to the verification of the information on the credit application and review of the credit worthiness of the borrower. O.A.C some conditions apply.