Prime Mortgages: A Guide for Ontarians

Understanding Prime Mortgages

Prime mortgages are home loans offered to borrowers who are considered low-risk due to their high credit scores and stable income. These mortgages often come with the most favourable interest rates and terms.

Insured Mortgages

An insured mortgage is a type of prime mortgage where the loan is backed by mortgage insurance. This insurance protects the lender in case the borrower defaults on the loan. In Canada, borrowers with a down payment of less than 20% are required to have mortgage insurance.

Uninsured Mortgages

Uninsured mortgages, on the other hand, do not require mortgage insurance. These are typically offered to borrowers who make a down payment of 20% or more. While uninsured mortgages may have slightly higher interest rates than insured mortgages, they can offer more flexibility in terms of loan terms and conditions.

Rental Mortgages

Rental mortgages are designed for borrowers who wish to purchase a property for rental purposes. These mortgages may require a larger down payment, they fall under the uninsured or conventional category and may have slightly higher interest rates than the two options above. However, they can provide a steady stream of rental income for the borrower.

Home Equity Line of Credit (HELOC)

A Home Equity Line of Credit (HELOC) allows homeowners to borrow against the equity in their home. This type of loan can be used for various purposes, including home improvements, debt consolidation, or as a source of emergency funds. HELOCs typically have variable interest rates and flexible repayment options.

Choosing the Right Option with Ltd.

When it comes to choosing the right mortgage option, it’s important to consider your financial situation, goals, and risk tolerance. At Ltd., we offer a range of prime mortgage options to suit different needs and circumstances. Whether you’re looking for an insured or uninsured mortgage, a rental mortgage, or a HELOC, we can help you navigate the options and make an informed decision.

Remember, the right mortgage for you depends on your individual circumstances and goals. It’s always a good idea to speak with a mortgage professional to understand your options and make the best choice for your situation. At Ltd., we’re here to help you every step of the way.