890 Short Street,
  Victoria, British Columbia
  V8X 2V5

  Phone:  250-658-9315

  Fax:  250-658-9316

           

Types of Mortgages

There are many types of mortgages available in the marketplace today.  Let The Mortgage Centre - Island Properties help you determine the best option for you.

Closed Mortgage:
A closed mortgage may not be paid off during the term without penalty. The interest rate is set for a pre-determined period, i.e., 1 - 10 years. At the end of the term, the mortgage rate is re-negotiated.

Conventional Mortgage:
A mortgage loan up to a maximum of 80% of the purchase price is referred to as a conventional mortgage. Any mortgage in excess of 80% must be insured against default (See High Ratio Mortgage).

High-Ratio Mortgage:
A mortgage where you have a down-payment of less than 20% with a minimum of 5% of the purchase price. This type of mortgage must be insured against default & an insurance premium will be added to the mortgage total.

Locked-In Mortgage:
Should be avoided wherever possible. The mortgage cannot be paid out even by paying a penalty.

Open-Mortgage:
The most flexible of all mortgages. Usually charged a higher interest rate but it may be paid off at any time without penalty.

Variable-Rate Mortgage:
The interest charged on a variable rate mortgage floats with the bank prime rate. After the experience of high interest rates in the early 80's, people were nervous of variable rate mortgages however they have become the product of choice for many mortgagors and recent studies have shown those on variable rate mortgages have paid the least amount of interest.

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