What type of mortgage should you opt for?

What type of mortgage should you opt for?

Open mortgage: A short-term mortgage that can be paid back at any time, in whole or in part, without penalties. The interest rate is generally higher than the rate of a closed mortgage for the same term, so this type of loan is suitable for borrowers who expect to repay a significant portion of their mortgage soon.

Closed mortgage: A mortgage with terms of 6 months to 5 years, which offers the security of a fixed rate for a longer term. The interest rate is lower than that of an open mortgage and advanced payments can be made.

Fixed rate: Rate that remains stable until the end of the term. With a fixed rate, credit charges and the due date of a loan can be calculated right away. It can apply to both open and closed mortgages.

Variable rate: The variable rate fluctuates based on the Caisse prime rate during a mortgage term. This allows borrowers to benefit from possible rate decreases and, consequently, pay back their mortgage sooner. If the rates fluctuate, payment amounts remain the same; only the amortization period (number of years necessary to pay back a loan) varies proportionally.

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Among the following profiles, choose the one that best describes you.

You’re looking for rate and payment stability.

Stable rates and payments:

  • Closed Fixed Rate
  • Open Fixed Rate

You prefer stable payments, but you want to take advantage of low rates. You have some tolerance for rate fluctuations.

Variable rates and stable payments:

  • Closed “5-in1” Yearly Rate Resetter Mortgage
  • Closed Protected Variable-Rate Mortgage

You want to take advantage of low rates. You are moderately sensitive to interest rate and payment fluctuations.

Variable rates and payments:

  • Closed Reduced-Rate Mortgage
  • Open Regular Variable-Rate Mortgage

You’re looking for an extremely flexible, tailored financing tool. You want to be able to group all your loans in a single loan or to diversify your risk or loans based on your projects.

Versatile Line of Credit

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