Why are there so many different types of mortgage rates in Canada? We break them down for you.
If you’ve been in the market for a new mortgage you may have stumbled upon some really tantalizing fixed or variable rates online but when you’re inquired about those rates it turns out you’re not qualified. What gives?
The truth is even if you are considered an AAA client at your bank you might not be eligible for those rock bottom advertised rates online (tip: those rock bottom rates aren’t always the best deal out there and often come with some potentially costly consequences).
It all depends on the type of mortgage product you are looking for. In Canada we have a variety of mortgage types and those rates are different for each type. These mortgage rates include Insured Mortgages, Uninsured Mortgages (aka conventional mortgages), Insurable Mortgages to name a few. And to complicate things even further there are separate rates depending on other variables such as if the property is a rental property, if you are qualified under the B20 Guidelines, if you are planning to refinance or pull equity out of your home, etc.
Check out the quick 2 minute video below that breaks down the differences
