Choose the right mortgage

You finally found your dream home. You explored neighbourhoods, went to open houses, read every housing market article you could find, fell in and out of love with properties – and it was all worth it.

So now you just have figure out what kind of mortgage will make your dream home a reality. You can see that there are a lot of options, but you might not know which is the best option for you. Here’s some helpful information on mortgage terms and options.

Now that you understand the options you have when putting together a mortgage, let’s look at an example to see what it all means.

Price of your home: $578,000

Down payment: $115,600 (20% of purchase price)

Amortization period: 25 years

Mortgage you’ve chosen: 5-year fixed rate closed mortgage with an interest rate of 3.09%

What does this mean?

• For the next five years, you would have a monthly mortgage payment of around $2,210 (not including creditor insurance).
• At the end of five years, you’ll have paid about $132,582 toward the mortgage principal and interest. Your remaining balance will be around $395,915.
• If you sell your home or refinance before the 5 year term is up you’ll pay a prepayment charge.