Mortgage Options

 

A home purchase or mortgage refinance or mortgage renewal is generally the largest financial transaction a consumer makes in their lifetime.  This, coupled with the numerous mortgage options available in the market drives the desire for many consumers to obtain professional, qualified advice when making their mortgage decisions.

 

SmartChoice Mortgages recognizes this qualified advice is essential for customers to make the right financial decision and has partnered with largest mortgage companies.  We have demonstrated the highest level of professional conduct and are focused on providing you with a mortgage experience that’s second to none.

 

SmartChoice Mortgages recognizes that your mortgage needs can vary and change over time so we offer a suite of mortgage options, along with flexible payment and rate options.

 

Here are some of our most popular products:

 

CONVENTIONAL MORTGAGE

• DOWN PAYMENT : at least 20%
• INTEREST RATE: Either on a fixed or variable interest rate basis.
• THE COST : lowest carrying costs (because they do not have to be insured against default
• YOU ARE RESPONSIBLE FOR: The cost of having your property evaluated by an independent appraisal company and the legal fees related to registering the mortgage and completing the purchase.

 

INSURED MORTGAGE

• also known as National Housing Act or High Ratio mortgages
• DOWN PAYMENT: requirements are lower than conventional mortgages - as low as $0!
• Availability: New homes/ condos also Re-sale homes/condos
• YOU ARE RESPONSIBLE FOR: Appraisal and legal fees and application fee for the insurance

 

CLOSED / FIXED MORTGAGE:

• THE INTEREST RATE: is locked in for the full term of the mortgage and you must pay compensation, known as breakage costs, to the mortgage lender to renegotiate the interest rate or pay off the balance prior to the end of the term.
• THE INTREST RATE: for closed mortgages are generally lower than for open mortgages and first-time buyers are often more secure knowing exactly how much their mortgage payments will be over a set period of time.
• TERM: terms usually are from 1 year to 10 years.

 

OPEN MORTGAGE

• THE INTEREST RATE: for open mortgages are generally higher than for closed mortgages because of the added flexibility. Open mortgages often offer greater flexibility than closed mortgages since they can be repaid either in part or in full at any time without breakage costs.
• TERM: Usually are six months or greater.

 

CONVERTIBLE MORTGAGE

• A Convertible mortgage is a fixed-rate mortgage which gives you the same security as a closed mortgage, but which can be converted to a longer, closed mortgage at any time without penalty. If you think rates may drop, this allows you to wait until you feel the time is right to lock in your rate.

 

VARIABLE MORTGAGE

• With a variable-rate mortgage, mortgage payments are set for a term of one to two years or longer even though interest rates may fluctuate during that time. If interest rates go down, more of the payment is applied to reduce the principal; if rates go up, more of the payment is applied to payment of interest. Variable-rate mortgages may be open or closed. A variable-rate mortgage provides the buyer with the flexibility to take advantage of falling interest rates and to convert to a fixed-rate mortgage at any time.

 

SECOND MORTGAGE 

• A second mortgage provides for the difference between the down-payment the client can afford and up to 95% of purchase price. A second mortgage can be used for a number of other purposes, too. Such as: Debt Consolidation, Home Renovation / Improvements, Immediate cash needs Types: Residential, Commercial, Construction, Industrial.

 

Consider that closed mortgages are usually the better choice for buyers who suspect that interest rates may be on the rise and for those who are not planning to move in the short term. They are often considered ideal for first-time home buyers, particularly in the early years. Open mortgages are normally suggested to buyers who are planning to move in the immediate future or who believe that interest rates are going down.

 

 

We want you to own your home sooner. Here’s how we do it.

Our rates are lower than the posted rates of the major banks. Our accelerated weekly or

bi-weekly payment options can take years off your mortgage and save you thousands of

dollars in interest. Our flexible prepayment privileges let you pay up to 20% of the original principal balance each year OR increase your payment amount by up to 20% each year OR a combination of both, as long as the total combined prepayment is within 20% of the original principal balance. All of these options have NO penalties – so you can become mortgage-free sooner!

 

Call 416-766-2300 or toll free 1-866-212-0888 or apply online using our secure mortgage application.