Finding the Right Mortgage for Your Needs
A mortgage is simply a loan secured against a property—but how that loan is structured can vary widely depending on your goals, financial situation, and risk profile. Whether you’re buying your first home, investing in real estate, or refinancing, there are several types of mortgages available to suit different needs.
While there are countless combinations and features available in the market, there are a handful of mortgage types that come up most often. These are the ones you’re most likely to encounter as you explore your options.
Choosing the right one can feel overwhelming at first, which is why our process always starts with a conversation. During your initial consultation, we’ll take the time to understand your long-term plans, walk through your financial picture, and explain the mortgage options that align with both. Our goal is to keep things simple, clear, and tailored to you.
Pre-Approved Mortgage
A mortgage pre-approval gives you a clear picture of how much you can borrow—before you start house hunting or make an offer. It’s a free, no-obligation process that considers your income, credit history, and financial profile to determine your borrowing power. We secure highly competitive rates with protection for up to 120 days. If rates go up, yours won’t. If they drop, you benefit from the lower rate.
With quick turnaround—often within hours—you’ll be in a stronger position to negotiate, and sellers will take your offer more seriously. Get started online or connect with us directly to lock in your rate and shop with confidence.
Conventional Mortgage
A conventional mortgage is a loan that covers up to 80% of the property’s value or purchase price—whichever is lower. These mortgages don’t require default insurance, making them a cost-effective choice for borrowers with larger down payments.
High-Ratio Mortgage
If your down payment is less than 20%, your mortgage is considered high-ratio and must be insured through CMHC or a private insurer. Insurance premiums vary based on loan-to-value ratios and down payment sources. This type of mortgage allows you to borrow up to 95% of the home’s value and is a common option for first-time buyers.
First Mortgage
This is the primary loan registered on the property and takes priority over any other financing. In case of default, the first mortgage lender has the first claim to the property’s value.
Second Mortgage
A second mortgage is a loan registered behind the first mortgage. While it comes with higher interest rates due to added risk for the lender, it can be a flexible option to access additional funds without refinancing the first mortgage—often used to consolidate debt or access equity.
Open Mortgage
An open mortgage gives you the freedom to pay off your mortgage at any time without penalty. These are usually available in short terms, such as 6 or 12 months, and carry higher interest rates. They’re ideal if you’re planning to sell your property or expect a lump sum payment.
Closed Mortgage
Closed mortgages typically come with lower interest rates and fixed terms ranging from 6 months to 10 years. While you can’t pay off the full amount early without a penalty, most allow prepayment of up to 20% annually. This is a solid option for borrowers looking for predictable payments and long-term stability.
Fixed-Rate Mortgage
A fixed-rate mortgage locks in your interest rate for the entire term, keeping your payments consistent. It’s a smart choice in a low-rate environment, offering peace of mind and easier budgeting—especially when rates are expected to rise.
Adjustable-Rate Mortgage (ARM)
An adjustable-rate mortgage fluctuates with the market. Your interest rate adjusts regularly—often monthly—based on the lender’s prime rate. These mortgages can offer savings when rates fall but come with added risk if rates rise. Most are convertible and allow for early prepayment without penalties.
Home Equity Line of Credit (HELOC)
A HELOC lets you access the equity in your home for renovations, investments, or other large expenses—often at a lower interest rate than traditional credit products. You only pay interest on what you use, and the funds become available again as you pay them down. HELOCs can be secured up to 80% of your property’s value, and in some cases, up to 90% with a second mortgage.
Equity Mortgage
Equity-based mortgages are designed for borrowers who may not qualify through traditional income verification methods—like the self-employed or those with credit challenges. Approval is based largely on the value of your property, and loans can be arranged up to 80%, or more with secondary financing.
Re-Advanceable or Collateral Charge Mortgage
This flexible structure allows you to split your mortgage into multiple segments, each with its own rate, term, and amortization. You can blend fixed and variable options, create access to a HELOC, and manage your mortgage more strategically. It’s a powerful tool for financially savvy borrowers comfortable with managing multiple components.
6-Month Convertible Mortgage
Ideal when rates are expected to fall, this short-term mortgage allows you to convert to a longer term without penalties. At the end of the 6 months, the mortgage becomes fully open, giving you flexibility to renew or switch lenders.
Bridge Financing
Bridge loans help cover the gap when you’ve purchased a new home but your current property hasn’t closed yet. They’re short-term, interest-only loans typically offered at rates above prime. This type of financing ensures you can move forward with your purchase while waiting for your sale to close.