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Mortgage Payment Frequency Options

Mortgage payment frequency options include many factors. These may influence your choice of payment frequency, including budget flexibility and when your payroll is deposited. Moreover, the ability to take on slightly larger payments will enable you to minimize total interest paid and pay off your mortgage quicker. When it comes to mortgage payments, the frequency of payment is a major consideration. Many mortgage lenders offer options for how often mortgage payments can be made. Ranging from monthly all the way up to bi-weekly, choosing the right mortgage payment frequency largely depends on your own lifestyle preferences.


When it comes to mortgage payments, many people opt for having their mortgage payment withdrawn from their bank account on the same day each month. This option makes mortgage payments easier to manage as there are only 12 payments per year. Choosing this payment frequency can also save you money in mortgage interest over time, as your mortgage is paid off faster.


A mortgage payment is typically paid bi-weekly, meaning that your mortgage payment is multiplied by 12, then divided by the number of pay periods per year. This helps to reduce the interest you owe over the course of a year, as bi-weekly payments are equivalent to making one additional payment per year. It also reduces the amount of time it take to payoff the debt.

Accelerated Bi-Weekly

The monthly mortgage payment is divided by 2; this amount is withdrawn every two weeks. With a Bi-weekly frequency, you are making a total of 26 payments per year. However, the payment amount is slightly more. So, you accelerate paying off your mortgage and will be paying less interest total.

These represent mortgage payment frequency options that are available for your own mortgage. Call us to discuss today.

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Using a Guarantor

Using a guarantor or co-signer will assure payment responsibility if the primary borrowers default. This will enable the applicant to qualify for a mortgage, if on their own; the applicant(s) have to poor credit and/or insufficient income. A guarantors name may be on the loan but not the property. Conversely, a co-signers name will appear on both title and the loan.

Co-Signor Risks

There is a significant amount of risk involved in agreeing to be a guarantor or co-signer. If the borrower defaults, they are responsible for the full amount of the mortgage. So, lenders require them to qualify as if they were the sole applicants for the loan. Like a primary applicant, the lender will require a credit check and discloses of income, liabilities, and assets. Further, a guarantor or co-signer will want to consider how this would affect their ability to qualify for a loan in the future. Important to consider, this loan will be treated as if they have sole liability and included in their debt servicing calculations.

A Guarantor must consent to having their credit checked and provide evidence of income that will meet mortgage-lending policy. With this in mind, it’s important to remember that guarantors are taking on responsibility if the borrowers don’t make payments.

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Mortgages after Purchase

You have purchased your home with your new mortgage; what do you do with it down the road? Well, there are options to refinance, renew, or transfer. All of these options will occur at any point throughout the term of your mortgage. These are Mortgages after Purchase.


Say you have been in your home for a few years now. The value has increased and you have paid off a portion of your mortgage. Why add to your mortgage? Perhaps you wish to do some renovations or other debt with higher interest rates you wish to pay off. Well you have additional equity that you can access that you can receive in cash now. This will be added you your existing mortgage amount for you to pay back with interest.


Now, say you committed to a 5 year term and that time is now passed. You still owe the remaining balance of your mortgage. Your current lender will contact you with a renewal offer with the interest rate they can offer you on the remaining balance and amortization. Unlike the initial approval process, the renewal process is much less extensive – no pre-approval, less required documents and application processes as mortgages after purchase.


Instead of re committing with your currently lender, you find a competitive rate or more extensive product offerings at a different lender. All other factors (mortgage amount, home, ownership, etc) will remain unchanged except who the interest is paid to. You will them be transferring your mortgage from one lender to another, another example of mortgages after purchase.

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How to Get Your Credit Report

How to get your credit report is so important as Lenders look to credit reports to assess the risk of a given borrower. Your score is a number from 300 to 900 that reflects how you have handled your finances in the past. The lower the number, the more risky you appear to lenders, so you are likely to be offered higher rates. It is always recommended to keep an eye on your credit. In Canada, you can receive a free copy of your credit report once a year from both Equifax and TransUnion.
The bureaus refer to your credit report as “client file disclosure” and “consumer disclosure” respectively. Ordering your “free report by mail” does not effect your score. Check your report for errors inconsistent with your true financial history and balances such as late payments; amount owing; or missing accounts. If you do find an error, report it it to the credit bureau to be corrected. We are happy to connect to answers all of your credit related questions. With over 25 years experience in the mortgage industry, we have seen it all. And we have the tools and guidance to handle any credit building (or rebuilding) needs you may. With this in mind, navigating today’s marketplace and credit takes expertise. Call us today.

Interest Rates: Fixed vs Variable

Fixed Interest Rates

Interest Rates: Fixed vs Variable. Fixed rates are often viewed as the safest choice – no surprises. You can rest easy knowing exactly how much interest you are paying and that regardless of fluctuations in the prime rate (for better or worse), you interest will remain unchanged.

Fixed interest rate can be taken on 1, 2, 3, 5, 7 and even 10 year terms. Note the distinction between term and amortization, term is when your mortgage is up for renewal while amortization is the total time it will take to payoff your debt.

Now, say you committed to a 5 year term, but three years in you want to take advantage of a different lenders product. To do this, you will need to beak your mortgage. THERE WILL BE A PENALTY. The size of penalty varies depending on the lenders current rate, the rate you held, the length remaining on your term, and balance outstanding. Lenders charge a penalty using the greater of the Interest Rate Differential (IRD) or three months interest.

Variable Interest Rates

For those of us that are comfortable with uncertainty, Variable rates provide potential for interest saving and term flexibility.

Variable rates are based on a lenders prime rate; plus or minus a set premium of discount. These rates are mostly available on 5 year terms. However, unlike fixed interest rate, the penalty is only a 3 months interest calculation. With this in mind, breaking the mortgage will likely be significantly less costly in understanding Interest Rates: Fixed vs Variable.