One of the most important steps towards accessing affordable housing is to secure a mortgage. Mortgages are loans provided by financial institutions that help people purchase a home. There are a range of different types of mortgages available in Canada, each of which has its own benefits and drawbacks. Here is an overview of the different types of mortgages available in Canada.
Fixed-Rate Mortgages: These mortgages are characterized by a fixed interest rate over the entire term of the loan. This makes them ideal for those who want to ensure that their payments remain the same over the life of the loan.
Variable-Rate Mortgages: These mortgages are characterized by an interest rate that can change over the life of the loan. This makes them ideal for those who are looking for a lower interest rate, as the rate may drop over time.
High-Ratio Mortgages: These mortgages are characterized by a down payment of less than 20%. This makes them ideal for those who have limited funds available for a down payment.
Portable Mortgages: These mortgages are characterized by the ability to transfer the loan from one property to another. This makes them ideal for those who are looking to move in the near future.
No-Documentation Mortgages: These mortgages are characterized by not requiring the borrower to provide any proof of income or employment. This makes them ideal for those who are self-employed or have an irregular income.
By understanding the different types of mortgages available in Canada, you can ensure that you choose the right one for your needs and budget. This will help to ensure that you are able to purchase a home that fits within your means and that you can afford over the long-term.
