When you are looking for a home, don’t limit yourself by considering only one type of mortgage. There are several different types of mortgages available in St. Albert, so choose the one that works best for you and your lifestyle.
What options do you have to choose from?
1) Closed mortgage
The first type of mortgage available to you in St. Albert is the closed mortgage. This type of mortgage doesn’t change. You can select the term length you would like, but your payments will stay the same until the term is up. If you do decide to payout, renegotiate, or refinance your mortgage before the term is up, you will be required to pay a penalty fee.
What are the benefits? This type of mortgage, available in St. Albert, enables you to pay lower rates since your payments are already secured. You are also usually allowed to make additional payments up to a certain amount without penalty (the pre-payment privilege), but you’ll want to verify your restrictions on this before you sign the deal.
2) Open mortgage
An open mortgage is much more flexible than a closed mortgage (as the name suggests). These types of mortgages, which are available in St. Albert, allow you to repay, in part or in full, at any time during the term without penalty. This way you can pay off some or all of your mortgage without the pre-payment costs, providing you with a lot more flexibility until you are ready to lock into a closed term mortgage.
3) Convertible mortgage
A convertible mortgage is a type of mortgage available in St. Albert that is just as secure as a closed mortgage; however, it can also be converted into a longer closed mortgage at any time without prepayment costs, a useful feature if you think your rates are about to rise. Convertible mortgages tend to be associated with fixed rate mortgages.
4) Reverse mortgages
The final type of mortgage available to you in St. Albert is the reverse mortgage. This mortgage, available to anyone 55 or older, allows an individual to draw liquid cash from his or her home without having to move or sell.
Looking into the types of mortgages available to you in St. Albert can make all the difference when it comes to ensuring your home buying experience stays as affordable as possible.Posted by Gurpreet Ghatehora on