Our mortgage brokers in Saguenay can help you get the best mortgage for your financial requirements. We consult with our clients to understand their needs and then find a lender that meets those needs. We try to provide a mortgage the lowest interest rate and the best terms possible. Call us for a free consultation on your next mortgage in Saguenay.
Open vs Closed Mortgage
A closed mortgage in Saguenay means that you must pay the entire amount of interest for the mortgage. Refinancing a closed mortgage can be very costly. Closed mortgages usually have the lowest interest rate and fees. Closed mortgages are best for people that have a stable income and do not plan to sell their home.
Open mortgages have a higher interest rate than closed mortgages and there may be some fees. The major difference is that you can pay off or refinance an open mortgage with a small penalty. In most cases the penalty is 3 months of interest. An open mortgage is best for a person that may sell the property in the near future.
Variable vs Fixed Interest Rates
A variable interest rate can go up or down depending on the Bank of Canada rate. Variable interest rates are usually lower than fixed interest rates. Variable mortgages are best for people that are willing to take some risk in exchange for a lower interest rate.
Fixed mortgages have a set interest rate for the term of the mortgage. Most fixed mortgages have a length of between 3 and 5 years. Fixed mortgages are perfect for people that want a stable mortgage.
First and Second Mortgages
A first mortgage in Saguenay is the most common mortgage and usually has better terms than a second mortgage. First mortgages have a loan to value ratio below 80% and the home owner should have a good credit score. A second mortgage usually has a maximum loan to value ratio of 85% and a higher interest rate.
To choose the best mortgage in Saguenay for your needs please call us for a free consultation.