Do you know what your Mortgage Options are?

November 14, 2017 | Posted by: Allison Kurys & Kim Owen

What are some of the different Mortgage Options that you have as a consumer?

There are six different types of standard mortgages and then of course you have your B mortgages and C mortgages which are the more non-conforming mortgages for people who may have bad credit or are self-employed and don't show enough income on their taxes.
Mortgage Type #1
  • Conventional/Low Ratio Mortgage:
  • This type of mortgage is for clients who have at least 20% down payment or more.  With a conventional mortgage you are not required to pay insurance which would be from CMHC, Genworth or Canada Guaranty.
  • Mortgage Type #2
  • High Ratio Mortgage: 
  • A High ratios mortgage is for clients who have a down payment of less then 20%, which means your down payment is anywhere from 19.99%-5%. This type of mortgage always requires the homebuyer to pay CMHC, Genworth or Canada Guaranty default insurance which will be included in the mortgage amount so it is not required to be paid out of the homebuyer's pocket.  You cannot put less then 20% down on a rental or investment property it must be owner occupied only.
  • Mortgage Type #3
  • Open Mortgage: This is a mortgage for homebuyers who are looking for a flexible alternative and would like the ability to paydown their mortgage faster or discharge their mortgage at any time without additional penalties.  Open mortgages are generally a much higher interest rate and are also done in the form of a secured line of credit.
  • Mortgage Type #4
  • Closed Mortgage: Majority of mortgages are closed which means in the event that you want to payoff your mortgage prior to the term expiry then you will always pay a penalty.  You also have the ability to make lump sum payments up to a capped amount.
  • Mortgage Type #5
  • Fixed Rate Mortgage: Fixed rate mortgages are one set rate and will not change for the term of your mortgage. As long as you don't break your mortgage your rate will not change.
  • Mortgage Type #6
  • Variable Rate Mortgage: A variable rate mortgage has the ability to fluctuate during the term of the mortgage.  It is based on the Bank of Canada's prime rate plus or minus a percentage depending on what your broker is offering.  If the prime rate changes then so will your interest rate and payments.

To find out more about all the different mortgages out there or if you have any other questions about your mortgage, please contact the RateHero Team @



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