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and options for your
At TMG The Mortgage Group, we research and filter through hundreds of loans and products with over 50 mortgage lenders which means you can be sure we're presenting you with competitive mortgage rates and options that are tailored to your specific needs.
While there are several factors to consider when making a mortgage decision including selecting the right mortgage professional and what you can afford, there are essentially four key elements to consider when making a mortgage product decision:
- Term - the contracted length of time you pay a specific rate on the mortgage. This is where mortgage amortization comes in which is the number of years over which the repayment of your mortgage loan is calculated.
- Rate - the interest rate on the mortgage which is either fixed or variable. A fixed rate means the same interest rate and payment guaranteed for the length of your mortgage and a variable rate means your interest rate fluctuates with changes in the prime rate.
- Term Type - specifies the conditions associated with paying out the mortgage as in open or closed.
- Flexibility - defines the ability to repay additional amounts thereby reducing your outstanding principal throughout the term of the mortgage; either ongoing with regular payments or lump sum bonus payments.
TMG offers a variety of mortgage product options including:
- An Open Mortgage - allows you the flexibility to pay off some or the entire mortgage at any time, without penalty. Interest rates are usually higher and are tied to the Bank Prime.
- A Fixed Mortgage - offers you the security of locking in your interest rate for the term of your mortgage, so you know exactly how much principal and interest you will be paying on the mortgage during the term. Terms range from 6 months to 10 years. Fixed rate mortgages offer some form of pre-payment, from 10% to 25% of the original mortgage balance each year, depending on the lender. If you wish to pay off your mortgage in full, there will be a penalty of either 3 months simple interest, or an Interest Rate Differential (IRD). The benefit of this mortgage is the rate is lower than an open mortgage, making it a more popular option if you have no plans to pre-pay it in full during the term you select.
- Variable Rate Mortgage - allows you to take advantage of today's low Prime Rate. Most variable rate products are set below prime, terms range from 1 to 5 years. The terms range from 3 to 6 years. Payments vary depending on the product or lender you choose. In some cases you can fix your payments for up to 5 years, but the interest rate will fluctuate as the Bank Prime Rate changes. In other cases your monthly payments will fluctuate depending on how many times the Prime Rate changes during your term.
- Secured Line of Credit - allows you to access the equity in your home whenever you choose. Rates are tied to prime, usually slightly above prime. Required payment on the balance is interest only, making it a good choice where cash flow may be important. Lower interest rates compared to an unsecured line of credit. You may have a secured line of credit and a mortgage, if you have good equity in your home.
- 2nd Mortgage - typically refers to a secured loan (or mortgage) that is subordinate to another loan against the same property.
- Private Mortgage - in this instance you don't borrow from a bank, you borrow from another person or business.
- Commercial Mortgage - similar to a residential mortgage, except the collateral is a commercial building or other business real estate, not residential property. In addition, commercial mortgages are typically taken on by businesses instead of individual borrowers.
Want more information? Check out our Mortgage 101 Videos.
Feeling overwhelmed? Don't be. We simply wanted to bring you up-to-speed but with our No Sweat approach to mortgage solutions, rest assured we can take it from here.
Contact a TMG Mortgage Broker in your area today.