Types of Mortgages


Conventional Mortgage

This mortgage is for an amount which does not exceed 80% of either the appraised value of the property or the purchase price, whichever is lower. Your down payment is a minimum 20% of the purchase price.

High-ratio Mortgage

With this type of mortgage, you contribute less than 20% of the cost of the home as a down payment and as little as 5%. A high-ratio mortgage requires mortgage loan insurance. CMHC and Genworth (GE) offer mortgage loan insurance and base the premium on the total mortgage amount. This premium can be added to your mortgage payments or paid in full on closing.

Second Mortgage

Second mortgages usually have a higher interest rate and shorter amortization than a first mortgage. Secondary financing is often used when one does not want to break the existing term on a first mortgage. Breaking an existing first mortgage often results in large payout penalties so a second mortgage may be the solutions.
Taking a second mortgage on your home is typically done to free up some cash for any number of reasons. Perhaps a home renovation or landscaping project to improve the value of the property