Get The Lowest Offered Mortgage Rates In Ontario
Check out a reliable source to find out mortgage rates offered by different financial institutes in Ontario. Compare the rates and also closely study the terms and conditions offered by those mortgage providers. Clear your doubts regarding open and closed mortgages, fixed and variable mortgages and available options for advance payment. You will find all these information in space for frequently asked questions.
What Would Be The Best Mortgage For Me In Ontario – Open Mortgage Or Closed Mortgage?
Closed mortgages have lower rate of interest than open mortgages, hence it could be more preferable. The interest rates of closed mortgage can either be fixed or variable. The advance payment options of these mortgages vary but the available advance payment option is fixed. In case payment done exceeds this amount, then it is penalized by additional interests.
If you opt for an open mortgage, then you can pay down as much of principal as you want to in particular year. Generally, open mortgages are taken my borrowers who has future plans to move to a different place, or some who would be getting a huge amount of money in future.
How do fixed and variable mortgage rates in Ontario differ from each other?
The rate of interest for fixed mortgages remains static for a particular term of mortgage. As a result, the borrowers can have the advantage of planning their budgets and steadily pay for the mortgage for the specific term of mortgage. Ideally, such fixed mortgage rates have been largely chosen for mortgage financing. While on the other hand, the rates of variable mortgage are lower than fixed mortgage rates. The rates of variable interest are tied to the market prime rate and so they keep changing over the entire term of mortgage.
What Are The Different Available Advance Mortgage Payment Options?
Advance mortgage payment options allow you the benefit of right to increase the amount of your monthly payments or to pay a lump sum amount for your principal mortgage amount. The terms of payment is decided by the lender. It allows the borrower to increase payments according to the percentage of his or her current payment. As a result this reduces your amortization period. You can also pay a lump sum amount of money for the principal on your mortgage. However, the percentage at which you would pay this lump sum amount would be base on your starting principal amount.
Please explain the concept of mortgage ratehold.
As the name suggests, a ratehold allows a borrower the right to hold today’s current mortgage rate of interest for a specific time period. This is a great advantage because, if you like today’s mortgage rate then you may look for a mortgage that has a ratehold up until the date of your mortgage renewal or closing date. However, it is important to note that the date of renewal is the day when your current mortgage term expires and not the amortization period.