Types of Mortgages

Mort-gage ( môr 'gĭj) n.

A document in which the owner pledges his/her/its title to real property to a lender as security for a loan described in a promissory note. Mortgage is an old English term derived from two French words "mort" and "gage" meaning "dead pledge."

Kelowna Mortgage Specialist / Broker

What is a Mortgage?
Not many people will have the full amount of cash to purchase their home. A mortgage is a loan of the money allowing a person(s) to finance the purchase their home without paying the full price all at once. The mortgagor is the person borrowing money, the mortgagee is the lender of the money.

About Interest Rates

An interest rate is the amount of interest charged on a loan amount, expressed as a percentage. It is based either on the rate the Bank of Canada charges to lend money to lenders or on bond yields. Interest rates are generally lower if you borrow money for a short period of time with less risk of change, and higher if you borrow the money for a longer period of time and more risk of changes in rates.


Fixed Rate Mortgage
With a fixed rate mortgage, the interest rate will never change throughout the term of your mortgage. If the interest rate is expected to move up this allows you to lock into today’s rate, protect your self against future changes. You will always know exactly how much your regular payments will be, and how much of your mortgage will be at the end of term.

Variable Rate Mortgage
A variable rate mortgage interest rates fluctuate with the bank’s prime lending rate, and may vary from month to month. When interest rates change, your payment will either change with that rate, or the amount remains the same but the amount owed at the end of term will change. The variable rate mortgage is a good option if you believe the rates to go lower, or you're not expecting to own the property for very long.

Your Next Home

Looking for a bigger/smaller home, new neighborhood, or just a change of style? There are mortgages to suit your needs at the interest rate your looking for.


There are many reasons you may want to refinance your mortgage. Consolidating your debt, reduce the credit card expenses, other purchases, investments, home improvements, etc. You can save money by refinancing your home and use the additional equity you have earned .

Second Mortgages
Second mortgage financing is simply another mortgage after the principal or first mortgage. This mortgage is registered behind the existing first mortgage. A second mortgage allows you to secure additional funds that the first might not have extended, or to receive financing after the first was secured.

Home-Equity Lines of Credit
An Equity Line of Credit gives you access to the equity in your home, up to 80% (select lenders) of the property’s appraised value. Equity credit can be in the form of cash or a credit card at a more favorable rate.

Private Mortgages
Private mortgages can be beneficial where the borrower is unable to secure a mortgage with institutional lender. The interest rates charged by the private lenders are generally higher and relative to the amount of risk perceived.

100 Percent Mortgage
No Down Payment Mortgage, designed for the first time buyer, is a program that will allow you to purchase a home but without having to save the down payment. If you are currently making sufficient funds that would qualify for the mortgage payment and have a good credit rating this program could allow you to buy that home.

Mortgage For Credit Challenged
Many lenders out side the banks understand that people will have a temporary set back at sometime that can cause some credit problems. They will measure each person and situation by its own merit . “Commonsense mortgages”

Previously Bankrupt
If you have declared bankruptcy, you may still qualify for mortgaging. The amount of down payment and credit rating determines what and how much you will be approved for. Lenders also what to see some reestablished credit. This can be a car loan, a secured credit card, etc.

Commercial & Business Financing
Whether you are looking to buy a new business or to refinance, ask us to provide you with an alternative solution for your financing. As a smart businessperson, you know the value of hiring an expert.

Pay off your mortgage sooner
Shorten the length of your mortgage and minimize the cost of borrowing.
There are many benefits to shortening your mortgage and save money.

Make more payments.
Increase the frequency of your payments. Paying more frequently can save you hundreds of dollars in annual interest costs.

Increase your down payment.
This will dramatically reduce the length of time to it takes you to repay the mortgage.

Make prepayments or anniversary payments.
Most mortgages will allow you to make payments during the year or at anniversary time. This money is applied directly to the principal, saving you money in annual interest costs.

Choose a shorter length of term to repay your loan.
Your mortgage payments will be higher but you’ll pay substantially less interest over the course of the loan.