When you start looking for a mortgage, it can get overwhelming with all the options you have to choose from! You know you want a low mortgage rate when you buy your Toronto home but aren’t sure what to look for beyond that. We can help!

Fixed-Rate Versus Variable-Rate Mortgage

You can obtain either a fixed-rate mortgage or a variable-rate mortgage:

  • With a fixed-rate mortgage, the interest rate and mortgage payment stay the same for your entire mortgage term. For example, you obtain a 5% interest rate and pay $750 every two weeks. You will never have to pay more than this for the entire term.
  • With a variable-rate mortgage, your interest rate will increase or decrease depending on the lender’s prime mortgage rate. It means you could start with an interest rate of 4.5%, have it go down to 4%, and then go up to 6%. Your mortgage payment will go up or down with the interest rate.

We can help you determine which mortgage option is best for you when shopping for your Toronto home. Either way, we can provide you with low mortgage rates!

The Mortgage Term

A mortgage term is the amount of time you are bound to a mortgage contract with your lender. The standard term is five years, but mortgage terms can be much shorter or longer.

With a mortgage, you are “locked in” to the interest rate you and the lender agreed to for that term. Once your mortgage term has finished, you can either pay your mortgage off in full or renew your mortgage. You can choose to stay with the same lender or shop around to find out if you can find a lower mortgage rate.

Pre-Payment Options

Finally, it would be best if you determined your pre-payment options when obtaining a mortgage. Pre-payment means you can pay down extra on your mortgage beyond the regularly scheduled payments.

With an “open” mortgage, you can pay down more than a “closed” mortgage. So an open mortgage is a good choice if you expect to have much extra cash to pay your mortgage off faster.

However, a closed mortgage is likely a better choice if you’re looking for a lower Toronto mortgage rate.

We’ll Help You Find The Right Mortgage To Suit Your Needs

We’ve covered some of the main things you need to know when obtaining a mortgage, but there’s no substitute for chatting with an expert! Our mortgage experts can explain everything you need to consider about receiving a low mortgage rate.

We’ll explain our various mortgages and work to find the perfect match for you! To get started, call us at 888-257-8130 or contact us online.