What prepayment privileges are typical?

Closed mortgages commonly allow 10–20% lump-sum prepayments per year plus the ability to increase regular payments. Exact privileges vary by lender.

Is a longer amortization a bad idea?

Not necessarily - it lowers monthly payments and improves cash flow, but you pay more interest over time. We'll model both so you can decide.

Mortgage options

The right Canadian mortgage depends on your plans, your comfort with rate changes, and how long you'll keep the loan. Here's how to choose.

Rate type

Your rate and payment stay the same for the whole term. Predictable and popular - ideal if you value certainty or expect rates to rise.

Your rate moves with the lender's prime rate. Often lower to start, with potential savings if rates fall - but payments can change.

Flexibility

Lower rates in exchange for limits on prepayment. Most Canadians choose closed and use annual prepayment privileges.

Pay off any amount anytime without penalty, at a higher rate. Useful if you plan to sell or repay soon.

Term vs amortization

The length of your current contract and rate. At the end, you renew or switch lenders.

The total time to fully pay off your mortgage. A longer amortization lowers payments but increases total interest.

FAQ

Many variable products let you convert to a fixed rate during your term. Terms vary by lender - we'll flag conversion options before you commit.

Pre-approval takes minutes, with no impact to your credit score.