City Centre Mortgages - Mortgage's applications

Wednesday
February 22, 2012

1 Year Closed : 2.74 %
3 Year Closed : 2.79 %
5 Year Closed : 3.19 %

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Closed and Open Mortgages

Open Mortgage

An Open Mortgage allows you the flexibility to pay off some or all of the mortgage at any time, without a penalty. Interest rates are usually higher and are tied to the Bank Prime Rate.

Closed or Fixed Mortgage

A Closed or Fixed Mortgage offers you the security of locking in your interest rate for the term of your mortgage, so you know exactly how much principal and interest you will be paying on the mortgage during the term. Terms range from 6 months through to 10 years.

Many lenders will allow prepayments of up to 20% of the balance annually without a penalty. If the mortgage is paid off in it's entirety before the end of the term, most lenders will collect a fee of three months interest or charge the lost interest to the end of the term.

Variable Rate Mortgage

A Variable Rate Mortgage allows you to take advantage of today's low Prime Rates. The interest rate fluctuates in relation to the 'Prime Rate'. Lenders compete by offering various discounts below the prime rate. Payments may be fixed for 3 or 5 year terms although the rate of interest will always fluctuate according to Bank Prime. If the Prime rate climbs you pay more interest and if the prime rate descends you pay off more of the principal.

Matrix Mortgage
A Combination mortgage where you can have a portion in a mortgage product and the remainder in a line of credit portion, up to 80% of your homes value. The appeal of this type of mortgage is you have the security of a fixed mortgage, and the flexibility of a re-advanceable low interest line of credit. Another great feature is the line of credit limit will increase for every dollar you pay down on your principle. you can choose any type of term on the mortgage portion and have interest only payments on the line of credit portion.