Mortgage Loan

Even more excellent reasons to become a homeowner!

Is this loan for you?

  • You want to buy a house and need financing.
  • You are seeking advice to find THE right loan for you
  • You are looking for all the information you need under one roof.
Outlines

Open mortgage: A short-term loan that can be paid back at any time

Closed mortgage: A loan with a term of 6 months to 5 years, which offers the security of a fixed rate for a longer term

Fixed rate: Rate that remains stable until the end of the mortgage loan term.

Variable rate: The variable rate fluctuates based on the Caisse prime rate during a mortgage loan term.

Features

Mortgages with stable rates and payments

Features With a closed fixed rate With an open fixed rate
Interest rate Stable until the end of the term Stable until the end of the term
Financing 80%* (95% with mortgage insurance) 80%* (95% with mortgage insurance)
Terms 6 months, 1 to 5 years 6 months or 1 year
Rate guaranteed at time of loan**? Yes, for 90 days (in general) Yes, for 90 days (in general)
Repayment possible without penalty? No Yes, at anytime, in whole or in part
Eligible for member dividends? Yes, when the caisse pays out member dividends Yes, when the caisse pays out member dividends
Distinctive features
  • Most popular loan
  • Interest rate lower than that of an open fixed-rate mortgage
Useful if:

  • your property is for sale
  • you’re waiting for an inflow of funds in the short term and will use these funds to make payments on your loan

 

Mortgages with variable rates and stable payments

Features With a closed “5-in1” yearly rate resetter mortgage At a closed protected variable rate
Interest rate Revised annually
Rebate guaranteed for the entire term
Rate fluctuates without exceeding a certain limit
Financing 80%* (95% with mortgage insurance, 2 units or less, owner-occupant) 80%* (95% with mortgage insurance, 2 units or less, owner-occupant)
Term 5 years 5 years
Rate guaranteed at time of loan**? Yes, for 90 days (in general) No
Repayment possible without penalty? No No
Conversion to a fixed rate? Yes No
Eligible for member dividends? Yes, when the caisse pays out member dividends Yes, when the caisse pays out member dividends
Distinctive features One of the best fixed rates on the market You benefit from rate decreases, while being protected from major rate increases


Mortgages with variable rates and payments

Features Closed Reduced Variable-Rate Mortgage Open Regular Variable-Rate Mortgage
Interest rate Follows the upward and downward fluctuations of the prime rate Follows the upward and downward fluctuations of the prime rate
Financing 80%* (95% with mortgage insurance, 2 units or less, owner-occupant) 80%* (95% with mortgage insurance, 2 units or less, owner-occupant)
Term 5 years 1 and 2 years
Rate guaranteed at time of loan**? No No
Repayment possible without penalty? No Yes, at anytime, in whole or in part
Conversion to a fixed rate? Yes, at anytime Yes, at anytime
Eligible for member dividends? Yes, when the caisse pays out member dividends Yes, when the caisse pays out member dividends
Distinctive features Usually allows you to benefit from a more attractive interest rate Usually allows you to benefit from a more attractive interest rate

* % of the smaller of the amounts of market value or property purchase. This percentage varies for second homes that are not accessible year-round.

** Rate in effect on application date or upon signing mortgage with the lawyer.

More information

Simplify your negotiations and guarantee your interest rate

Before you even start looking for a property, determine how much you can borrow with a Preauthorized Mortgage.

Did you know?

Loan Insurance offers protection that ensures reimbursement of the loan in the event of disability or death.

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