Mortgage rates can be used for a variety of reasons, but the
most common is to finance or refinance a home. There are several types of mortgages to suit the unique needs of
different borrowers. The mortgage rates the GTA has available depend on several
factors, including the type of mortgage and variable factors that depend
largely on the borrower. Learning a little about the different types of
mortgages available will help you better understand the exact service that best
Different Types of
Deciding on which type of mortgage to apply for can
be a little tricky for most people. You’ll be introduced to many new terms and
different wording that makes shopping particularly difficult. These are some of
the most popular types of mortgages available in the GTA:
Rate Mortgage – this loan includes principal costs and interest. The terms are
usually set in stone, but the interest rate can either increase or decrease.
The difference in the interest rate is typically based on the prime rate.
Mortgage – these are typically given at higher interest rates due to the
flexibility afforded through pre-payment options. With this mortgage, a portion
or the entire mortgage is paid off anytime without penalties and is a great
option for those who can pay off the mortgage in a short period of time.
Mortgage – this loan type is a reflection of the appraised value of the
property. For a reverse mortgage, applicants are typically required to be in
their late fifties and have considerable equity built up in their home. This
can be an excellent opportunity for retirees to balance out their finances.
Mortgage – often beneficial for individuals looking to lock into a long-term
agreement that includes current mortgage terms without suffering a penalty for
making additional payments. A fixed rate for the duration of a specified term
is applied to this short-term mortgage. These can usually be converted into
long-term mortgages at any time.
Rate Mortgage –among the most popular in the GTA. With this loan type,
applicants are able to lock down an interest rate for a time period starting at
3 months and lasting up to 25 years. Depending on the lender, borrowers can
also qualify for certain payment options that will allow you to pay the
mortgage off a lot quicker. The main appeal to this type of mortgage is that
payments are consistent. The consistency of the payments allows the borrower to
plan a budget far more easily without the fear of increasing payments that are
possible through variable rate mortgages.
Mortgages can be an ideal solution to buying or refinancing
a home, but understanding mortgage rates starts with a firm grasp of the
different types of mortgages available. In order for a mortgage to be
beneficial, it’s vital to find an affordable rate and reasonable lending terms that
suit your personal needs. Questions or concerns in regards to obtaining a
mortgage are best addressed by contacting a reputable and reliable financial
service institution. By speaking with the finest in the business, a better
understanding of the mortgage rates in the GTA brings you one step closer to a
better financial standing.