With many different mortgage options to choose from, it can seem overwhelming to determine which you are eligible for, and which will serve you and your unique situation best.
That’s why the team at The Mortgage Station spends so much time working to educate their clients and the public on the different types of mortgages and how individuals and families can unlock financial freedom.
What are the four most popular mortgage options?
Equity mortgages are based more on the equity of a property than the income or credit standing of the property owner and can be well suited for someone who is self-employed, has poor credit, or simply wants to keep more information private (when the banks want to know all).
Equity mortgages require:
- Additional Down Payment
- Income To Debt Ratios
- Property Details
“My husband Paul, and I decided to use the equity in our home, to start a home based business. This was a new venture for us and we were taking a chance. We had used The Mortgage Station a few years back when we renewed our Mortgage, so Paul gave [them] a call. Within a month, we had the money in our account and to our surprise; David had managed to get us a much lower rate! I’m happy to report that, so far, our business is doing well. When it’s time to renew our mortgage we will definitely be calling again!” – Paul & Valerie
To learn more, please visit our Equity Mortgages page.
RRSP mortgages allow you to be your own bank and to renovate your home (adding further value to it), to invest, or to consolidate debt. Factors to determine your eligibility include what type of property you’re investing in and the loan to value (LTV), which is a percentage of the remaining mortgage balance divided by the value of the property.
You have the option to leverage your RRSP through the Home Buyers Plan, a Personal RRSP Mortgage, or an Arms Length Mortgage.
To learn more, please visit our RRSP Mortgage page.
Private Mortgages are taken out between an individual and another person (or business), rather than with a bank. Because private lenders do not require the same documentation as a bank, this option may be more appealing to those who do not qualify for loans with a traditional lender.
If you’re self-employed or have a poor credit history, you may still be able to get a private mortgage. Private mortgages are available for both purchase and refinancing mortgages. Often, individuals will take out loans with family members, or business owners who are in a financial position to help out.
“Thank you for all of your help, for answering all of our questions and for being prompt. Thank you for working late hours on our behalf. It was a pleasure doing business with you. When I went online looking for a new mortgage, I was hesitant because how do you know who to trust “online”. We will definitely recommend The Mortgage Station to our friends! Thank you, we wish you the best!” – Maggie & Des
To learn more, please visit our Private Mortgages page.
A reverse mortgage is a loan available to seniors and is taken out against the value of a home. These funds are advanced in lumps or fixed monthly draws.
Reverse mortgages allow seniors (over 55 years) to use the equity they have built up in their home over time to defer their monthly mortgage payment until they pass away, sell, or move out of the home. This type of mortgage is ideal for seniors as they can borrow tax-free in aone-time lump sum, planned advances, or a combination of both. Either way, no payments are required until you choose to sell or leave your home, and the total amount borrowed can be up to 55% of the value of your home.
For more information, please read our article, ‘What Is A Reverse Mortgage?’ or take a look at this video by the HomEquity Bank:
Contact The Mortgage Station
As a mortgage broker, The Mortgage Station has access to multiple mortgage options, and we’re dedicated to helping you to determine the one that is best for you.
Putting our clients first, we can bring peace of mind to all homeowners with knowledge and planning that will help them to unlock the mortgage opportunity that best meets their needs.