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Many people just choose the mortgage with the lowest interest rate, but it is worth comparing different loan features and your goals.

How To Refinance A Second Mortgage | Loans Canada

Compare loan features

In 2018 there are many different mortgage products available. There are usually advantages and disadvantages between various mortgage products.

For example, home loan products are split into term loans (fixed term) and floating rate (rate based on LVR).

For standard term home loan, lenders will sometimes provide special discount rates and free first month’s rate as an incentive to entice you to apply for a short term loan.

After you’ve chosen a mortgage product, you should also consider comparing the loan terms and details. Click this link to get started.

Loan term

Short term mortgages have the longest term available to you and usually contain low rates and wide availability.

Longer term home loans tend to have higher rates, higher rates and narrow choice of products. They often have repayment options that are not so flexible.

If you need more time to pay off your mortgage then you could pay more in interest.

Ease of payment

Short term mortgages are usually more convenient to apply for and require less paperwork and fees.

Longer term mortgages require more paperwork and there is often a higher commission charge.


A mortgage lender is the company that manages and administers the mortgage process. They are responsible for reviewing and approving your application for the mortgage.

Loan points and fees

Loan points and fees are fees and charges charged to you as a home owner.

All fees are reviewed before the final loan approval. Loan points and fees can range from very low to very high.

Loan prepayment charge

Loan prepayment charge is a charge applied to the monthly mortgage payments when you switch mortgage products from one lender to another.

It is usually higher in fixed rate loans than in short term loans. In all cases it has to be paid in full by the new loan holder before the new mortgage term starts.

Completion and lump sum

Completion and lump sum are two types of payment due in a mortgage loan. They are sometimes also known as prepayment charges.

Completion is where you make your payments during the maturity of the mortgage loan. You will receive this payment as soon as the mortgage has matured.

Lump sum is what you receive when your mortgage has been repaid and the property is transferred back to you. You will pay this sum as soon as you sell the property.