There are a wide range of mortgages available to borrowers these days. Below is a list of the most common types of mortgages as well as other financing information that may be beneficial to you as a buyer.
Pre-approved mortgages are a great option for many home owners, especially first time buyers. Pre-approved mortgages allow buyers to look for properties that they know will fall within their allowable mortgage budget which is based on their income, existing debts and current credit rating. If you think a pre-approved mortgage is a right fit for you, I am able to assist you with the process by putting you in contact with a lender that will best suit your specific needs and budget.
Any loan that is less than 80% of the purchase price is considered a conventional mortgage. A conventional mortgage does not require insurance as it is not considered a high risk mortgage.
Any loan that is more than 80% and up to 100% of the purchase price is considered a high ratio mortgage and is required to be insured. High ratio mortgages are typically insured by CMHC (Canada Housing and Mortgage Corporation). However, high ratio mortgages are sometimes insured by GE Capital, private insurers or Federal Government Corporations. The premium can either be added to the mortgage or can be paid in full on closing.
An open mortgage allows you to pay off your mortgage at any time without incurring any penalty. However, the terms for open mortgages are shorter than other options and are typically for only 6 months or 1 year. In addition, interest rates are often 1% higher on open mortgages than on closed mortgages.
Closed mortgages provide security and peace of mind in knowing that you have a fixed payment. Closed mortgages provide lower interest rates than open mortgages and typically have terms from as low as 6 months to as long as 10 years. Although borrowers enjoy piece of mind from knowing exactly how much their payment will be, the down side of a closed mortgage is that if you should ever decide to pay your mortgage off early, you will be required to pay a penalty fee. The penalty is typically 3 months of interest.
Fixed-term mortgages are a good option for individuals who want comfort in knowing that a particular interest rate (usually a low one) is locked in for a specific period of time. The interest rate for a fixed-term mortgage is set for the entire term of the mortgage which ensures that the monthly payment of interest and principal remain the same throughout the entire term. This is a great option to make use of when rates are already low as it will help protect you should rates suddenly increase. The opposite also applies: if rates are on the higher end, a fixed-term mortgage may not be your best option.
Contact me today to learn how I can assist you with obtaining the right mortgage for you and to learn how I can assist you with your real estate needs.
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We have worked with other realtors in the past, but our experience with Braden set a new standard of excellence in both customer service and professionalism in the industry. His commitment to help you find the perfect home was clearly demonstrated through making himself available to answer all our questions, providing us with the latest information on available properties and opportunities, and showing us the properties that met our needs. He provided excellent advice on both the purchase and selling processes. Braden was also hired to sell our home and he threw everything behind getting the job done (amazing marketing materials, videos and outreach through social media and the broad connections provided through the Christie’s International affiliates). He helped with preparing the home and providing solid advice on the sale approach. Overall, an amazing experience. I definitely would recommend him to represent any buyer/seller as he goes above and beyond to get the job done and done well.
Braden worked tirelessly to get us into our first condo. He was always available to take us to showings and in the end we purchased a condo that was on the market for only 7 hours thanks to Braden’s quick work. He’s also personable, professional and calm. We felt that he provided us with sound, reasonable advice and his knowledge of the market is extensive. We wouldn’t hesitate to recommend Braden.
I recently used Braden to sell my property. Braden was extremely professional and reliable. He was always available to answer questions when needed. I was especially impressed with the way Braden marketed my property by creating one of the best custom promotional videos I have seen for my property. Braden’s passion for real estate, his first class customer service and his unique marketing approach helped me sell my property for what I believe was a record breaking number at that time. I highly recommend using Braden for all of your real estate needs.
I definitely recommend Braden. He helped us sell our condo in five days, for over our asking price. Prior to that, he spent almost every evening with us over the course of three weeks to help us find a new home. His knowledge of the contracting industry enabled us to gauge what kind of work might be needed to fix a place up, and how that might affect our offer. Braden was incredibly dedicated and is someone I would certainly use again.
Braden is a model real estate agent. His professionalism and diligence is unparalleled. I have had the pleasure of working with Braden for the past two years and have been more than happy with the properties he has helped me find. I would highly recommend him to friends or anyone else looking for a real estate agent here in Toronto.
If you like your phone calls and texts returned within 30 minutes, having all of your questions answered clearly and professionally combined with a personal and calm approach then I would recommend giving a call to Braden White ….It was a very positive experience.
I had the most positive experience with Braden as my real estate agent. I felt relaxed throughout the entire process because he was on my side of the ring. With Braden, I found a great rental in the very first day of our search. Bigger than expected within my price range, in the neighbourhood I wanted, with a beautiful view of the city and amazing amenities. We saw the place and closed it with a couple days. It’s only because Braden was so energetic and committed to me as a client that we were able to get the unit. I couldn’t be happier, and I’m so thankful for all the time that Braden put into my deal. He’s not just an efficient agent, but a thoughtful negotiator. A process that could have dragged on for weeks, happened in the blink of an eye. Thank you Braden!
I usually don’t write online reviews, but given Braden’s unsurpassed professionalism, sound advise and market experience I felt compelled to post.
Braden sold my downtown Toronto condo well above my initial estimate and in record time. He was able to achieve this because of the number of tools and resources available to him, from his team who sent emails informing me of visits from potential buyers and their agents, to the amazing photographer who made my unit sparkle and shine.
Then, he found my dream home! He knew I wanted it the minute I walked through the door. But before we bid he did his due diligence: he looked at upcoming construction projects, local amenities and complied a list of comparables so that the amount I bid put me ahead of the others, which it did, and now I’m home.
Braden is incredibly knowledgeable, approachable, and professional. If you called or emailed him he would respond promptly. He’s a wizard with the paperwork and made the whole process of finding a condo easy and stress free. 10/10 would use him again.
Braden is extremely professional, accommodating and easy to work with – would 100% recommend!
My husband and I needed to find a new rental property as our property owner’s son had decided to move into the unit she owned. This happened 3 months before our wedding, and as you can imagine, we were a little stressed. Braden eased our concerns, patiently showed us numerous places in Toronto, within our price range, and desired neighbourhoods. He was responsive, understanding quick and personable.
Within two weeks we found the perfect spot and we couldn’t be any happier. His guidance throughout the whole process was so appreciated and we are so thankful to have worked with him. Again, would 100% recommend without a doubt.