The 411 on Mortgage Types

Which mortgage will you dive into?!

There aren’t only one or two types of mortgages out there. In fact, there are hundreds! So how do you sort through all of these and decide which one is right for you? We have laid out the most prevalent and accepted mortgages in Canada below! Get your reading glasses folks, because this is going to help a lot of you who don’t want to spend your entire weekend perusing countless bank and mortgage websites.

Purchasing a Home

When you purchase a home, there are many options you will encounter. How do you know which one will work best for your specific needs? If you hire a mortgage expert, it is a much less complicated and relaxed process. However, just so you get a basic understanding of the fundamental choices available to you, we will summarize them here.

  1.  Conventional VS. High Ratio -> You need to put down at least a 20% down payment for conventional mortgages, while you can put down 5-20% for high ratio mortgages. The only thing is that with high ratio mortgages, you need mortgage loan insurance. This insurance premium may be added to your monthly mortgage payments.
  2. Fixed Rate VS. Variable Rate -> A fixed interest rate does not increase throughout your mortgage term. So if the market dips or rises, your interest rate will not be affected by it. Variable interest rates fluctuate with the Bank of Canada Prime. The Bank of Canada determines this rate announcement approximately 8 times per year.


This is when you replace your existing mortgage with a new mortgage. “Why would I want to refinance my mortgage?” you ask.

-> A better interest rate might be available to reduce monthly mortgage payments

-> It can improve your cash flow if you reconsider your amortization plan

-> Lets you switch from a fixed rate to a variable rate mortgage to lower interest costs

-> Allows you to borrow money at a lower cost than a conventional loan to consolidate debt, invest in another property, or get you that dream kitchen you’ve always wanted!


At the end of your term, you may want to renew your mortgage. Renewing your mortgage is a fresh start where you can reassess your current financial status and take a shot at lowering you rates.

Mortgage Winners has the right expertise and strategic objectives to help you save a lot of money. Who wouldn’t want to save a little extra money right?! Maybe you can finally get that pool you’ve always wanted, or start saving up for your children’s education.

Whatever your dream is, we can make it happen!

Dive Into Your Mortgage