The Different Types Of Residential Mortgages Available And How To Choose The Right One For You

Author: Rokar Financial | | Categories: Commercial Mortgages, Home Financing Advisor, Insurance Services, Mortgage Advisor, Mortgage Agent, Mortgage Financing, Residence Mortgage Agent, Residential Mortgages

3.jpg

Homeownership is a significant milestone for many people and a great investment for the future. It’s essential to choose the right financing option to make the process of buying a home as stress-free as possible. Residential mortgages are the most common way of financing a home purchase. But with so many options available, it can be overwhelming to choose the right one. The good news is that by understanding the different types of residential mortgages available, you can make an informed decision and find the best mortgage for your needs. In this blog, we at Rokar Financial will discuss the different types of residential mortgages available and how to choose the right one for you. 


Fixed-Rate Mortgages: This type of residential mortgage has a fixed interest rate that remains the same for the entire term of the loan. This can be a good option if you prefer stability and predictability in your monthly mortgage payments.

Adjustable-Rate Mortgages: This type of residential mortgage has an interest rate that changes over time. The rate can increase or decrease depending on market conditions. This option can be more affordable in the short term, but it can also be more unpredictable in the long term.

Conventional Mortgages: Conventional mortgages are typically offered by banks and other financial institutions. They usually require a minimum down payment of 20% and offer a range of terms and interest rates.

High-Ratio Mortgages: This type of residential mortgage requires a down payment of less than 20%. It is designed for homebuyers who cannot afford to make a large down payment. High-ratio mortgages usually come with a higher interest rate to compensate for the higher risk to the lender.

Cash-Back Mortgages: This type of residential mortgage offers a cash rebate to the borrower at closing. The amount of the rebate can vary, but it is usually a percentage of the mortgage amount. Cash-back mortgages can be a good option if you need extra cash to pay for home renovations or other expenses.

Open Mortgages: An open mortgage allows you to make lump-sum payments or pay off your mortgage in full at any time without penalty. This can be a good option if you expect to receive a large sum of money, such as a bonus or inheritance, during the term of your mortgage.


Choosing the right residential mortgage for you can be a daunting task, but by understanding the different types of Canadian residential mortgages available, you can make an informed decision. Whether you prefer a fixed-rate mortgage for stability or an adjustable-rate mortgage for flexibility, there’s a mortgage out there that’s right for you.

At Rokar Financial, our team of experts can help you navigate the different types of residential mortgages and find the best one for your needs. With years of experience and a passion for providing the best solutions for our clients, we have established ourselves as a leading provider of residential and commercial mortgage solutions in Mississauga, Milton, and the surrounding areas. Our diverse and dynamic team allows us to utilize our vast experience and provide our clients with platinum service.

Get in touch with us today!
To learn more about the services we offer, please click here. To get in touch with us, please click here or give us a call at (647) 886-1214



READ MORE BLOG ARTICLES