There are several home loan options on the market today. Due to the numerous options available, it's generally recommended that you do your homework before you sign up for a loan. A good way to start is to make use of the many online home loan calculator Canada on various sites.

While looking for mortgage, it's important to understand the various home loan products before you choose. This helps you select the best loan for your situation and needs. Most lenders generally provide different options of mortgage rates. It's important to know these mortgage rates as they determine your monthly payments. Having the right information on mortgage rates and home loan options will really help you save money.

With so many home loan products to choose from, it's essential to get advice from a professional mortgage broker Toronto to make sure you choose the right home loan product. The following is a brief look at just a few mortgage products.

Standard flexible rate mortgage

With this home loan option or mortgage, payments fluctuate, either going down or up as the lender's standard flexible rate goes down or up . When assessing whether this mortgage is best for you, the question you need to answer is whether you can afford to pay more if rates increase. If you can afford, then this home loan options lets you capitalize on low payments if and when rates go down. Then again, if you're unable to afford payments as interest rates rise, this isn't the right home loan option for you.

Base rate tracker home loan

This home loan option is quite similar to the variable rate mortgage but interest rates fall and rise exactly according to the changes in the base rate of the central bank. This option is ideal for those who want to ensure their mortgage rate goes down at the exact same time the rate of the central bank falls.

Fixed rate mortgage

A fixed rate home loan means your interest rate is fixed for a certain period of time only, during which you have the same mortgage rate payment. Once the fixed rate period is over, the interest rate of the mortgage changes to the lender's standard variable rate. Many lenders normally offer fixed rate home loans for 1-10 years. But based on market conditions, these mortgages can be offered for longer periods of time.

Discounted rate mortgage

In discounted rate home loans, the lender gives a discount on their standard variable mortgage rates for a specific period of time--usually 1-2 years. After this period, the interest rates on the mortgage will be the same as the lender's standard variable rates.

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