Their are four main types of mortgages offered by lenders in Canada.  They are referred to as closed, open, fixed and variable rate.  Many lenders offer products that can be combined with the mortgage type, so ask questions when you meet with them!

Here is an overview on the above mentioned types of mortgages:

Closed Mortgage

Within a closed mortgage, the payments remain unchanged for the duration of the load period (term).  This format provides stability but penalizes a borrower who wants to terminate the mortgage early.   Typically there are set terms for the loan, usually ranging from a term of 6 months up to even twenty years.  The norm is to secure a term of five years as this provides a locked in rate for a good number of years but allows you to change your mortgage after five years.

Open Mortgage

This form of a mortgage allows the flexibility of pre-payment of the mortgage which is in contrast to the closed mortgage format.

Variable Rate Mortgage

In a variable rate mortgage, the interest rates can change during the term.  The advantage of this format is that the borrow may take advantage of lower interest rates than in a fixed rate mortgage.  On the downside, this mortgage exposes the borrower to change, which could mean the interest rate could go up or down thus affecting the monthly payments.

Fixed Rate Mortgage

Here you have a mortgage that has a constant interest rate throughout the term of the loan, even if the rates rise in the marketplace.  On the flip side, if rates go down in the marketplace, the borrower is locked into the fixed rate until their term is up.  The desireable element of this form of a mortgage relates to the stability of the payments for the borrower.

There are a number of variations of the type of mortgages available in the marketplace.  To explore these more, I would encourage you to visit with a lender, be it a bank or a mortgage broker, to discuss what would be best suited to you & your lifestyle.  If you need a recomendation on where to start, please give me a call or email me. 

Upon pre-approval with a lender, let’s get started on finding you a new house or condo!

For those of you buying a new home, or a newer home, you may be encountering the term Energy Star Home.  If you are not familiar with this term, you may wonder why its being promoted so much for the home in question.  So here’s the details you’ve been looking for, straight from the Ontario Government…

“An ENERGY STAR qualified home is a home that has been built by a licensed ENERGY STAR for New Homes builder who incorporates energy efficient features into the home so that it can meet the ENERGY STAR for New Homes technical specifications.

Upon completion of the ENERGY STAR qualified new home, an independent (not employed by the builder) ENERGY STAR for New Homes evaluator verifies that the home has been built to ENERGY STAR for New Homes technical specifications. After the verification process is complete, Natural Resources Canada issues an ENERGY STAR for New Homes label and certificate to the homeowner. The label is usually placed on the home’s electrical panel and includes a regional service organization seal of authenticity.

Potential home buyers will be amazed to learn how much less they will have to spend for heating, cooling and hydro in energy-efficient homes”

If your new home is not ENERGY STAR rated, you may still benefit from many energy efficient components of your new home!

Contact me for all the details on how you can earn tons of AIR MILES Reward Miles just for buying or selling a house with us!

Let’s go to some open houses! Here are some simple tips to arm yourself with for your open house travels:

• When picking your footwear selection for the day, opt for the easy-on, easy-off shoes.  Why?   Sellers want you to take off your shoes so that their flooring does not get dirty.
• If you are planning to head out to specific properties, plan your route ahead of time so that you can allow enough time to get through all the properties you wanted to view that weekend.  On the flip side, if you are just starting your search and have not set plans, grab the Whig Standard HOMES section, jump in the car and just start driving.  Most REALTORS place their open houses signs on street corners for that you can find us fast!
• Be prepared to sign in.  With the increase in trying to protect the property and for safety in general, you may start to find more agents requesting that you sign in before viewing the house.   So if an agent asks you to, please be courteous and if you don’t want to be marketed to then tell the agent, they will make sure you don’t get anything.
• Grab the flyer with the details about the house on your way in.  Take down some notes on your likes and dislikes so that you can recall these feelings when you get home.  I have a great check list for viewing properties, so send me an email if you want a copy for your open house tours.
• Remember that the REALTOR is there to help you.  Regardless of what agent is representing you, the agent in the house can still answer your questions and help you with your tour.  Then, if you decide want to take a second viewing of the house, call me or the REALTOR that represents you, and we’ll get you through the house on your our schedule.  If touring open houses is not your cup of tea, send me an email and I’ll build a property specific tour of homes for you to tour at a time that is convenient for you.

So where will I be this Super Bowl weekend?  I’m hosting two open houses, one on Saturday and one on Sunday.   Visit the links below for details:

www.341boxwood.com

www.36westmorland.com

Remember: It’s the season for BONUS AIR MILES Reward Miles for all my buyers!!