Types of mortgages available in Canada

Types of mortgages available in Canada

When it comes to buying a home, one of the most important decisions you will make is how to finance it. In Canada, there are several different types of mortgages available, each with its own unique features and terms. Understanding the different options can help you make an informed decision and find the best mortgage for your needs.

Fixed-rate mortgages:  A fixed-rate mortgage is the most common type of mortgage in Canada. With a fixed-rate mortgage, the interest rate remains the same for the entire term of the mortgage, which is typically 25 years. This means that your monthly mortgage payments will remain the same, even if interest rates rise. The main advantage of a fixed-rate mortgage is predictability, as you know what your payments will be for the entire term of the mortgage. This makes budgeting and planning easier as you know exactly what your mortgage payments will be. However, if interest rates drop, you will not benefit from the lower rate and may end up paying more than you would with an adjustable-rate mortgage.

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