Canadian Mortgage Comparisons
Fixed Rate Mortgages
- Fixed rate mortgages lock in the interest rate for the entire mortgage term. This is most beneficial when rates are low enough to make you happy; a fixed rate also keeps your payment amounts consistent.
Variable Rate Mortgages
- Variable rate mortgages fluctuate as the bank's prime rate changes across the term of your mortgage. Variable rates are often seen as riskier than fixed rates as the rate could rise or fall at any time, but they offer the benefit of potentially paying down the mortgage faster.
- Closed mortgages are designed to maintain a consistent payment schedule across the mortgage term; a feature like prepayment may incur fees. Typically, closed mortgages offer lower rates than open mortgages.
- Open mortgages offer the ability to prepay all or part of the remaining mortgage principal without incurring prepayment fees.
- If you think rates will rise, convertible mortgages offer the ability to convert to a closed mortgage and lock in a rate and term. The main benefit is that it enables you to be flexible with a low or variable rate when you start your mortgage and, when you feel comfortable, you can lock in that low rate for the remainder of your mortgage term.
Additional Mortgage Offers
- Many mortgage providers offer additional benefits added onto traditional mortgages, such as reward miles, cash back or special mortgage insurance.