Mortgage Terms & Conditions

Open/Closed Mortgages

An open mortgage lets you pay off as much of the principal as you want at anytime without penalty. A closed mortgage locks you into a specific payment schedule with a penalty applied if you wish to repay the loan in full before the end of the term. A closed mortgage usually offers a lower interest rate for the same term.

Fixed/Variable Interest rates

A fixed rate mortgage allows you to budget precisely for whatever term you select, while a variable rate allows you to speculate during a fluctuating market hoping for a lower average rate.

Term

This is the length of time for which the interest rate on your mortgage is fixed. At the end of the term, the outstanding mortgage can either be paid in full or renewed for another term at the prevailing rate.

Prepayment Privileges

An amortization period (the time it takes you to pay off the total mortgage) can range from one to thirty years. The longer the amortization period, the more interest you end up paying. Prepayment privileges vary with the financial institution. The prepayments are deducted from the principal owing and can substantially reduce the amortization period and the total interest paid.

Weekly/Bi-weekly payments

Accelerated bi-weekly payments are calculated to allow you to make 26 payments per year instead of 12 monthly payments. This results in a huge interest savings and lets you pay off your mortgage sooner.

Portability

If you purchase another property, you can take your mortgage with you to help finance your new home.

Current Mortgage Rates

Mortgage rates from Pace Mortgage Group.

Mortgage Calculator

Mortgage Calculator from the Canada Mortgage and Housing Corporation.