In Canada, buying a home means choosing a mortgage plan. Mortgage is the loan that you take to buy the property. There are many types of mortgage plans and several options from where you can borrow. Some of these options are banks, finance companies, private lending companies, credit councils and pending funds etc. With so many options, we are here to help you make the best possible choice.

Avon Financial is offering you following mortgage programs with several options to help you through the home buying process.

Open Mortgage

In open mortgage plan, you can pay back mortgage amount in installments or full amount at any time without paying extra penalty cost. The interest rate on this type of mortgage is usually high. However, this plan is beneficial in case you are going to sell your house or planning to pay extra payments on your mortgage in installments.

Close Mortgage

Under close rate mortgage you cannot pay off mortgage at any time or in extra payments and even if you do you have pay penalty. This type of mortgage plan offers low interest rate but come with limited options.

Conventional Mortgage

This type of mortgage requires you to pay a down payment of 20% of the purchase price of the home from your own savings to get the mortgage.

High-Ratio Mortgage

With high-ratio mortgage plan you can a down payment of 5% of the purchase price of the home to get the mortgage. However, in order to get high-ratio mortgage you need to get mortgage loan insurance. Your lender will get your insurance amount in case you won’t be able to pay back the mortgage.

Fixed Rate Mortgage

A mortgage plan under which the interest rate does not change throughout the mortgage term.

Variable Rate Mortgage

A mortgage plan under which the interest rate changes according to market events. In variable rate mortgage the amount of monthly installments remain static but the interest rate changes sometimes due to external events.

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Mortgage Glossary