Types of Mortgages:

Conventional Mortgage

A conventional mortgage is a loan that does not exceed 75% of the purchase price or appraised value of the home, whichever is less. This type of mortgage does not have to be insured against default.

High-Ratio Mortgage - CMHC Insured / GE Capital Insured

A high-ratio mortgage is a loan that is above 75% and up to 95% of the purchase price or appraised value of the home, whichever is less. These mortgages must me insured against loss by either Canada Mortgage and Housing Corporation (CMHC), a Federal Government Corporation, or GE Capital, a private insurer. The premiums can be added to the mortgage amount or paid at closing, and are as follows:

Open Mortgages

An open mortgage allows you the flexibility to repay the mortgage at any time without penalty.

Closed Mortgages

A closed mortgage offers the security of fixed payments for terms from 6 months to 10 years. The interest rates are considerably lower than open. Lending institutions, they offer as much as 20% prepayment of the original principal and a few more options

Fixed-Term Mortgages

With a fixed-rate mortgage, the interest rate is set for the term of the mortgage so that the monthly payment of principal and interest remains the same throughout the term.

The Adjustable Rate Mortgage (A.R.M.)

The Adjustable Rate Mortgage (A.R.M.) provides a lot of flexibility, especially when interest rates are on their way down. This mortgage is fully convertible at any time without any cost to you. Also known as “Variable rate mortgage”.

Secured Lines of Credit

Use the equity in your home that you have built up to purchase investments (where interest costs would be deductible against the earned income), finance home renovations, buy a car, or any other reasonable needs, with rates as low as prime.

Convertible Mortgage

When rates are on their way down, or you may feel that they will in the near future, the convertible mortgage offers you the short term commitment at fixed payments, with an added advantage that while within the term, the mortgage is fully convertible to a longer term from 1 year to 10 years. At the end of the 6 month period, the mortgage becomes fully open, where one can renew with the existing lender or transfer to another lender.

Second Mortgage

A higher interest rate loan that provides borrowers with additional financing if the first mortgage does not meet their total financial requirements.

Credit reporting agencies or credit bureaus, collect information about consumers' financial affairs and sell that information to their business members, such as mortgage brokers, credit grantors, employers and insurance companies. The credit bureaus charge annual fees as well as a fee for each credit report requested by members.

In Canada, there are 2 major credit bureaus: Equifax Canada and TransUnion Canada.

Most national and international creditors, such as banks and retail stores, are registered with both bureaus, so the chances are good that whatever shows up on one credit report will also appear on the other. This makes it simple for you to check your history. You need only to check one of your bureau's records.

When applying for credit such as a mortgage or loan, one and sometimes both of your credit bureaus will be checked to obtain your credit score & repayment history.

The Canadian Privacy Act assures that your permission is required to access your credit bureau. CDC Group adheres to this right to your privacy, and your mortgage specialist will always ask permission before accessing your bureau.