Selecting the Right Mortgage
Apply now or use our Pre-Qualifier to quickly determine which of HLC’s lenders can qualify you for a mortgage. Try as many scenarios you want!Apply Now
At HLC we believe that your mortgage should be tailored to your individual needs. Your HLC mortgage professional can help you decide which type of mortgage works best for you.
Conventional or High Ratio Mortgage?
The amount of your downpayment will determine if you will have a conventional (uninsured) or high ratio (insured) mortgage. It is possible to buy a home with as little as 5% down.
Conventional Mortgage. Your downpayment is greater than or equal to 20% of the purchase price and your mortgage does not need to be insured.
High Ratio Mortgage. Your downpayment is less than 20% of the purchase price and your mortgage must be insured. An insurance premium will apply.
Few people have a 20% downpayment available to them at the time of purchase. Regardless of your situation, an HLC mortgage professional is happy to discuss mortgage options to help meet your unique needs.
Fixed or Variable Mortgage?
The chart below explains how you could benefit from a fixed rate mortgage or a variable rate mortgage.
The principal portion of your payment is affected by the lender’s prime rate.
If rates go down, a larger portion of your payment goes towards principal, helping you pay off your mortgage faster.
Develop A Mortgage Strategy
Keep in mind, the best mortgage for you should be specific to your needs, but important considerations include:
Interest Rate Alone Does Not Guarantee The ‘Best’ Mortgage. Think about flexibility as well as value, so that you can choose to pay down your mortgage debt quickly, save on interest costs and ensure the flexibility required when making a housing change.
Consider A Prepayment Clause In Your Mortgage. It will allow you to pay a lump sum or an extra payment towards your mortgage — without extra costs — giving you the freedom to repay more principal in a year if you choose.
Payment Flexibility. Does your mortgage allow for increased mortgage payment options?
Amortization Period. Shortening your amortization reduces the overall interest you pay, but increases your actual payments. Please use our Pay Mortgage Faster Calculator to find out how different amortization periods affect your payments.
Payment Frequency. A more frequent payment schedule — for example, bi-weekly instead of monthly — may help you pay down your mortgage faster. To see how much interest you may be able to save, try different options on our Pay Mortgage Faster Calculator.
Can You Refinance? What are the costs if you choose to refinance your mortgage? If you are in a closed mortgage, consider the the fact that their may be prepayment costs.
Portability. Can you transfer the terms and conditions of your mortgage to your next home? This may allow you to keep a low interest rate if you sell one home and buy another.
Assumability. Are you able to assume (take over) the existing mortgage on the property? It may have attractive features, such as a lower interest rate than the prevailing market. In turn, an assumable mortgage may be a selling feature for you when you decide to move on in the housing market.