Choosing the best promotion

Discounted Mortgage Rates
Interest rates are the face price of mortgage financing and it makes sense to search for the lowest rate available. A slightly lower interest rate can save you thousands of dollars in interest over the years. Mortgage consultants have access to the best mortgage rates through a wide variety of Canadian mortgage lenders. Mortgage consultants handle hundreds of deals each year and make it their first priority to find their clients the best rates, from every source.

Have a look at our featured mortgage rates compared to the posted rates of many financial institutions. The truth is, most lenders will budge on interest rates, but you have to know which ones will go the lowest, why, and when. Ask your consultant how to get the best interest rate for your mortgage.

Cash Back Mortgages
A number of lenders have responded to the high cost of buying a home by offering special cash back mortgages. The concept is pretty simple really, the lender will payback a certain amount of the mortgage loan you borrow in cash to you. For instance if you borrow $100,000 and the cash back offer is 3%, you'll get $3,000 in your pocket.

Cash Back is usually offered in lieu of a mortgage rate discount so you have to compare your options to determine the best deal. Generally speaking this option is a great way to go for cash strapped first time buyers, but the long term benefits of a lower mortgage rate can be slightly greater. Our mortgage consultants can help you weigh your options by calculating the benefits of each alternative to determine if cash back is right for you. Not all lenders offer the same amount of cash back so contact your mortgage consultant for advice on the best deals in the market.

Easy Start Mortgages
Also great for first time home buyers. This mortgage gives you a low interest rate in the first year of a 5-year term so that your payments during the first year of homeownership are lower while your settling in and managing your finances. The trick is to determine if the large interest rate reduction for just the first year is more beneficial than a slightly smaller reduction that lasts the full mortgage term. Your mortgage consultant can help you determine the best option and even compare these alternatives to cash back promotions.

Split Term mortgages
Split term mortgages are like having a diversified investment portfolio. Part of the mortgage can be dedicated to a lower rate but with a riskier short term, and the balance can be locked into a higher rate for a longer term for greater peace of mind. This option is tailor made for some types of borrowers, but is complicated and should be discussed with your mortgage consultant.

Rate Capper Mortgages
Essentially a rate capper mortgage allows you all the benefits of a variable floating rate mortgage, with a capped maximum so that you won't get caught off guard if rates take a dramatic turn for the worse. There are costs and benefits to this alternative too so be sure to discuss this with you mortgage consultant.

Choosing your Mortgage

Fixed-term mortgages
Fixed term mortgage offer a set rate for the contracted term of the mortgage. These terms can range from 6 months up to 7, 10 even 25 years. Whether you should lock in for a long term or stay short depends on the trend of interest rate in the market as well as your financial situation and risk tolerance. Many fixed term mortgages do allow you to make partial pre payments on the principal balance during the term, however these privileges vary from lender to lender. Your mortgage consultant will assist you in making the best decision and can set you up on accelerated payment plans that can save you thousands of dollars of interest.

The open mortgage
Open mortgage are usually preferred if you are planning to pay off the loan within 6 months or 1 year. This is often the case if you intend to sell your home or are expecting a large amount of cash in the near future. It is usually the desired option because you can pay it out at anytime without suffering the payout penalty associated with a closed mortgage contract.

The Six-month convertible mortgage
If mortgage rates are declining you may want to consider a convertible that allows you to lock in to a longer term, presumably at a lower future interest rate, without any penalty. Convertible mortgages usually have terms of 3 months to one year. Our network of mortgage consultants can help you make the right decisions in view of current mortgage rate trends.

Variable rate mortgages
A variable rate mortgage allows you to take advantage of the lowest rates available. When interest rates are declining your mortgage rate floats down with the market. The variable rate is usually based on current rates or a benchmark. Variable rate mortgages have been the cheapest source of financing in recent years as the trend of mortgage rates has been downward. The risks come when interest rates begin to increase or spike for a short period. This can result in an increased mortgage payment and/or an increased mortgage payback period.

2nd Mortgages
Second mortgage financing is simply another mortgage for the balance of funds you require. This requirement may arise from the purchase of a new home and at the same time porting your old mortgage. Sometimes the second mortgage financing arrangement will result in a reduced mortgage insurance fee. Some lenders even offer insured second mortgage money at first mortgage interest rates.

Equity Lines of Credit
An Equity Line of Credit gives you access to the equity in your home, usually up to a maximum of 75%. You won't have to apply for credit or suffer high rates of credit cards because your mortgage is increasable when you need it. This is a great way to finance a home renovation, borrow to diversify or enjoy higher returns, or consolidate other debts.

Purchaser Decisions
Purchasers have to make a variety of choices when selecting their financing options. A qualified mortgage consultant can help you make informed decisions by providing you with the best alternatives available. A mortgage consultant works with your Realtor and lawyer, and with most of the financial institutions in Canada, to ensure that you have the right mortgage at the least cost. You can then buy the home of your dreams.

Homeowner Decisions
Once you've purchased a home it's nice to know you have a mortgage consultant on your side to help you manage your finances. A mortgage consultant can show you how to pay off your mortgage faster and save thousands of dollars of interest. They can advise you on your early renewal options and show you how to avoid unnecessary costs or penalties. If you need to reorganize your debts, they can show you creative solutions. When it is time to renew your mortgage, you can rely on your consultant for straight advice on whether you should stay put or shop around again.