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Trenton Ontario Home Loan

Finance Information

How much home can you afford? Use our finance center to learn about your loan options below. There are several loan programs available, and depending on your credit history, there is bound to be one that is perfect for you. Here are a few examples of the most popular programs offered today:

 Some Home Finance Advice From A Professional

Cheryl Brown

Invis Canada’s Mortgage Experts

Office: 613-475-2539 Cell: 613-921-8968 Fax: 613-475-0453

Finding the right home and the right mortgage to suit your personal needs can sometimes feel very complex.

It doesn’t matter what circumstance you’re in – purchasing a first or second home, refinancing to renovate, consolidating debt or renewing your mortgage – you can qualify for the best rate and mortgage option available based on your credit standing. Being able to have the guidance of a professional mortgage agent can make the process seem simple and relaxing.


With the guidance from your mortgage agent you will be able to choose from several different options that will suit your individual needs and requirements.


Looking at your Different Options:


In reality, there are only two mortgages, of which as you will see; there are many characteristics and features.

1. Conventional mortgage: A mortgage loan less than or equal to 80% of the value of the property. I.e. a mortgage for $160,000 on a $200,000 home.

2. High Ratio mortgage: A mortgage loan greater than 80% of the value of the property, and therefore subject to mortgage loan insurance through either Canada Mortgage and Housing Corporation (CMHC) and Genworth Financial Canada. With mortgages that are insured through CMHC or Genworth, the insurance premium is added to the mortgage amount.


Understanding Mortgages Features:


Mortgage Types

Today more than ever, there are numerous mortgage options available.

  • Fixed-rate: 6 month, 1, 2, 3 year (open, closed and closed convertible) 4, 5, 7 and 10 year closed.

  • Variable-rate: 3, 4 and 5 year (open, closed, closed-convertible and capped) the interest rate is usually compounded monthly and fluctuates with the prime rate at the chartered banks.

  • Split-term: Combination of all possible terms (6 months through to 10 years).



Open Mortgage: This allows you to pay back the borrowed funds without notice or penalty. There are two types of open mortgages:

Fixed rate mortgages; the term is usually fairly short and the interest rate will be higher than on closed mortgage.


Variable rate mortgage; are usually open but recently, several institutions have introduced closed versions.


Closed Mortgage: A mortgage whose terms state that it cannot be paid out, even with a penalty, unless the lender agrees. In some cases a closed mortgage maybe discharged at a defined cost, usually interest rate differential but sometimes with a punitive penalty such as full interest to maturity.



Mortgages products:


Lenders offer a few different products to fit your individual needs and plans.

Purchase plus improvements : if you intend to buy a home that needs some immediate upgrades a “purchase plus improvements” mortgage covers the purchase price of the home, plus any renovations that would increase the value of the property. Finishing the basement, adding a deck, redoing the kitchen or bathrooms are all examples of improvements that can be financed with no need for a second mortgage. For current homeowners “refinance with improvements” option may also be available.

Step –program: One time application and approval allows you to borrow back up to the Global limit at anytime (without reapplying). Being able to split the mortgage in up to 3 different terms to manage interest rate risk.




Repayment Options:


Prepayment options: Many lenders allow you to make a lump sum payment – usually 10% to 20% of the original principal balance, per annum. In addition, many mortgage products now include a double-up and skip a payment feature. This lets you bank extra mortgage payments for a rainy day, at which time you can skip them if you need to.


Payment changes: Most mortgages now allow the amortization to be adjusted by increasing the payment on closed terms by 10% - 20% per year, once annually.


Payment Frequency: Most mortgages now come with the option to pay your mortgage at a frequency that matches your cash flow – weekly, bi-weekly or semi-monthly. The added benefit of the accelerated weekly and bi-weekly payments is that by dividing a regular monthly payment into two or four respectively, and deducting it at the new interval, an extra payment a year is made directly against principal. The surprising effect of this one extra payment a year is to reduce the amortization of the average mortgage by approximately 5 years, with savings at the end of the mortgage term.




Please feel free to contact Cheryl personally for a free consultation or to answer any of your questions at the contact information below.




Cheryl Brown

Invis Canada’s Mortgage Experts

Office: 613-475-2539 Cell: 613-921-8968 Fax: 613-475-0453

cherylbrown@invis.ca

Contact Information

Malcolm Johnston
Century 21 Lanthorn Real Estate. Ltd.
441 Front Street
Trenton ON K8V 6C1
Office: 613.392.2511
Cell: 613.242.8160
Fax: 613.392.9385