How to Get the Best Mortgage Rate Right Now | NextAdvisor with TIMETD Canada Trust offers several different types of mortgages to meet your needs. Find out what type of mortgage is right for you and learn more about the features and benefits.


Conventional vs. High-Ratio


When you’re getting a mortgage, there are two main types of loans: conventional and high-ratio. If you’re looking for a conventional mortgage, you’ll need to put down 20% of the purchase price (or 10% if you plan to buy in Northern Ontario), while high-ratio mortgages require at least 5% down. However, as we mentioned earlier on this page, first-time homebuyers who don’t have enough saved up for a down payment can take advantage of special programs that will allow them to be approved for a low-down payment loan.


Riskier vs. Safer


High-ratio mortgages are riskier because they require less equity from the borrower—meaning that if property values decline or interest rates increase suddenly (both unlikely scenarios), they’ll have less protection than someone who has put more money into their home’s purchase price.


Variable Rate Mortgages


Prime rate is the lending rate used by banks to lend money to their best customers. It’s a measure of how much it costs for banks to borrow money, which in turn affects what they can offer you as a borrower.

The prime lending rate is determined by the federal government based on economic indicators, and it changes every six months.

The prime lending rate has remained unchanged at 2% since September 2018, so you won’t see any changes soon!


Fixed Rate Mortgage


A fixed TD Mortgage Rates Ontario is the most popular type of mortgage, and it’s one of the best options for those who want to know exactly how much they will pay each month. Fixed rate mortgages are also good for those who want to save money on interest and don’t mind committing to a set payment plan.


A fixed rate offers you a specific interest rate for a certain period (usually 5-30 years). This means that even if other rates increase or decrease during this time, you’ll always be paying your set amount each month for your home loan


Open Mortgages


Open mortgages are available to borrowers with a minimum of 20% down payment. This is the most common type of mortgage in Canada; it’s also known as a variable rate mortgage because you can make additional payments to pay off your mortgage faster, or you can withdraw from the account balance without penalty if needed.


While open mortgages are typically used by first-time home buyers, there are some exceptions: for example, if you’re looking for a fast turn around on closing costs, an open mortgage could be beneficial.


As you can see, TD Canada Trust offers 4 different types of mortgage rates in Ontario. The most important thing to remember is that the best mortgage rate for you depends on your financial situation and goals. If you have any questions about which one is right for you, please contact us today!

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