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Mortgage Options
Understand the mortgage basics

Amortization: is the number of years that you take to fully pay off your mortgage (not the same as your mortgage term). Amortization periods are often 15, 20, or 25 years long (30 or 35 year may also be available), although you may enjoy considerable interest savings by selecting a shorter period (note comparison chart below).

Term: is the period during which the interest rate applies. You can choose terms from 6 months, 1, 2, 3, 4, 5, 7 and 10 years. Your tolerance for risk and analysis of where interest rates are going will help you define the best term for you. Upon term expiry, you can pay out the balance or renew the mortgage for another term.

Mortgage Type	Definition	Your Benefits
Closed Term	A mortgage which has a set, unchangeable term. You cannot pay off a closed mortgage before the agreed end date without prepayment cost.	Lower interest rates than an open term. Usually provides an option for increasing payments and/or making lump sum payments.
Open Term	Offers full flexibility on paying the mortgage in full or making any additional payments at any time at no cost.	Full flexibility until you're ready to lock into a closed term; Allows you to pay off all or part of your mortgage balance without pre-payment costs.
Convertible Term	Offers the same security as a closed-term. In addition you can convert to a longer, closed term mortgage at any time without prepayment costs.	Offers a lower rate than an open mortgage of the same term. Provides security and flexibility, allowing you to simply convert to a longer, closed mortgage term without prepayment costs.
Rate Type	Definition	Your Benefits
Fixed	Both your interest rate and payments remain constant to the end of the term.	Maximize your low interest rate and low payment for your entire term. Provides peace of mind knowing exactly how much your payments are and how much of your mortgage balance will be paid off at the end of your selected term.
Variable	The interest rate fluctuates with the market prime rate during the term. Your actual payments may not change during the term, but if rates go down more of your payment is applied toward the principal.	Offers potential interest savings as, historically, variable rates have been lower than fixed rates. If rates go down a larger portion of your payment is applied to your mortgage principal. This could help you pay down your mortgage faster.

Bi-weekly versus monthly mortgage payments

Switch your monthly mortgage payments to bi-weekly payments, and you'll save significant amounts of interest on your loan and shave years off your amortization period!

Mortgage Payment Option	Mortgage Payment	Amortization Period	Number of Payments per Year	Approx. Interest Savings over Lifetime of Mortgage
Scenario One: Monthly Payment	$959.71	300 months (25 years)	12	N/A
Scenario Two: Bi-Weekly Payment (half of monthly payment amount)	$479.86	251 months (20 years, 11 months)	26	$26,233

Increase your mortgage payments

You can enjoy significant savings simply by increasing your mortgage payments.

The following scenarios, which were based on a fixed rate mortgage of $100,000 at 6% APR, show you the benefits of increasing your monthly mortgage payment. As illustrated below, you could save over $40,000 and reduce your amortization to 15 years.

Amortization Period	Mortgage Payment	Total Interest Costs	Interest Savings
15 Years	$839.88	$51,178.90	$40,763.09
20 Years	$712.19	$70,925.23	$21,016.76
25 Years	$639.81	$91,941.99	N/A

Ask your agent about repayment options that can help you become mortgage free sooner!