Ontario Mortgage Pulse: Navigating the Mortgage Maze (Part 2) – Breaking Down Mortgage Types
Choosing the right mortgage type is one of the most important decisions you’ll make as a homebuyer. In Part 2 of our series, we’re breaking down the different types of mortgages, their pros and cons, and how to decide which one fits your financial goals.
1. Fixed-Rate Mortgages
A fixed-rate mortgage locks in your interest rate for the entire term, providing stability and predictability in your monthly payments.
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2. Variable-Rate Mortgages
With a variable-rate mortgage, your interest rate fluctuates based on the lender’s prime rate, which is influenced by the Bank of Canada.
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3. Hybrid Mortgages
Hybrid or split-rate mortgages combine fixed and variable rates into a single product, offering a balance between stability and flexibility.
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4. Other Mortgage Options
How to Choose the Right Mortgage
Next Steps in the Mortgage Maze
Understanding your options is key to choosing the right mortgage. In Part 3 of this series, we’ll cover what to expect on closing day, from fees to finalizing the deal, ensuring you’re fully prepared to complete your homebuying journey.
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