Mortgages
Understand what a mortgage is before you sign.
A mortgage is a type of loan taken out by a borrower to assist with the purchase of a home. The lender (usually a financial institution) gives the borrower access to funds under the promise that the borrower will pay it back as per specified repayment arrangements and terms. There is a cost to a mortgage—the lender will charge the borrower interest or service charges, depending on the agreement.
How much interest you pay depends on three factors:
- How much you borrow (the principal)
- The interest rate on the loan
- How long you take to pay it back (the amortization period)
Mortgage term and payment options
There are a number of different mortgage options to choose from, depending on what works best for you financially. These options include term types and payment options.
Open mortgage
This gives you the option to re-pay any amount of the balance owing at any time, without taking a penalty. With open mortgages, interest rates are usually higher.
Fixed/closed mortgage
This can provide peace of mind because your mortgage is “locked in” to a specific interest rate for a chosen term and immune to fluctuations in the market. With a closed mortgage, you don’t have the repayment flexibility of an open mortgage, but you are often allowed a few penalty-free repayment periods that are built into your agreement.
Variable mortgage
This has the potential to save you interest and gives you the freedom of added flexibility. With a variable mortgage, you can take advantage of low interest rates without having to lock into a specific rate. By not locking in, your interest rate can vary from month to month.
Enjoy freedom and comfort with a mortgage that fits your lifestyle and goals
Buy your first home, renew, or refinance, with a mortgage that offers affordable payments and extra payment options.
- Re-advanceable mortgage
Borrow back up to 80% of your home’s value
- Interest rates and terms
Choose from closed or open, and fixed or variable term options
- Payment frequency
Select monthly, semi-monthly, bi-weekly, and weekly payment plans
- Multiple loans secured by your home
Save time and money with a one-time registration and avoid extra legal fees for re-advancement
Features
- Consolidate debt
Reduce your overall interest and combine your loans and lines of credit into one monthly mortgage payment
- Pay your mortgage off faster
Increase payments up to 20% or make an annual lump sum payment up to 20% of your principal
- Lower down payment options
Put as little as 5% down with a high-ratio insured mortgage
Specialty Mortgage
Build your dream home and get financing as you need it with a construction mortgage. Get pre-approved for the entire project before you start, access funds as needed to pay vendors as you go or convert to a conventional or high ratio mortgage when construction is complete
No matter what type of mortgage you commit to, you have a number of different payment options available to you. You can choose to pay weekly, bi-weekly or monthly, depending on your financial circumstances. If you want to pay off your mortgage faster, you can pay on a weekly basis and take several years off your overall mortgage timeline.
You also need to bear in mind that if you have a down payment of less than 25% of the purchase price of the home, you will require a high-ratio mortgage. These mortgages have to be approved by Canada Mortgage and Housing Corporation (CMHC) or Genworth Corporation and you’ll need to get mortgage insurance.
Get pre-approved for a mortgage with G&F.
Getting a mortgage pre-approval from G&F is an important first step before you begin your house hunt. A mortgage pre-approval factors in your financial situation so you will know how much you can afford for a house and what price range you should stay within. It will also give the home seller more confidence in your offer because you’ll have financing pre-arranged.
The first step is to talk to a G&F Mortgage Relationship Manager (MRM) about what you’re looking for and start exploring financial requirements. The conversation you’ll have with the MRM will be a discussion about your mortgage availability, current interest rates and the mortgage options that are available to you.
The next step in the process is filling out a mortgage application form. It’s a good idea to submit a mortgage application before you begin house hunting so that you can be pre-approved for a certain price range. Your MRM can guide you through this process.
G&F offers competitive mortgage rates
For more information, please contact our Member Hub at 604-419-8888.
