Helping Clients Understand Mortgages

We are here to help you refinance your property with a second mortgage.

Second Mortgage Terms

Mortgage amount
Original or expected balance for your mortgage.

Interest rate
Annual interest rate for this mortgage.

Amortization period
The number of years over which you will repay this loan. The most common mortgage amortization periods are 20 years and 25 years.

Mortgage payment
Your principal and interest payment (PI) per period.

Accelerated weekly and bi-weekly payments

Accelerated weekly and accelerated bi-weekly payment options are calculated by taking a monthly payment schedule and assuming only four weeks in a month. We calculate an accelerated weekly payment, for example, by taking your normal monthly payment and dividing it by four. Since you pay 52 weekly payments, by the end of a year you have paid the equivalent of one extra monthly payment. This additional amount accelerates your loan payoff by going directly against your loan's principal. The effect can save you thousands in interest and take years off of your mortgage.

The accelerated bi-weekly payment is calculated by dividing your monthly payment by two. You then make 26 bi-weekly payments. Just like the accelerated weekly payments you are in effect paying an additional monthly payment per year.

Total payments
Total of all monthly payments over the full term of the mortgage. This total payment amount assumes that there are no prepayments of principal.

Types of Mortgages Offered

Fixed Term Mortgage

The interest rate is established for the entire term of the mortgage so that the monthly payment of principal and interest is unchanged.

Open Mortgage

Ability to repay the mortgage at any time without penalty. The availability options are reduced to shorter terms (6 months or 1 year only), and the interest rate is higher than closed mortgages.

Closed Mortgage

Fixed payments for a set term. The interest rates are normally less than open mortgages. Paying off the entire mortgage before the maturity will result in a penalty charge for breaking the mortgage. This penalty is customarily three months interest, or the interest rate differential.

Equity Mortgage

Evaluated based on the equity of the home (market value minus the mortgage amount). You can receive as much as 80% of the purchase price or value of the property. These are generally offered to applicants that do not meet the normal income and/or credit qualifying mortgage guidelines (i.e. little or no income verification, self-employed, and/or less-than-perfect credit).

For more terms, visit https://www.canada.ca/en/financial-consumer-agency/services/mortgages/borrow-home-equity.html