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Mortgages Hamilton

Save time and money with Loans Canada

Written by Lisa Rennie

Best Mortgages Hamilton 2020

Lender directory

Compare the best lenders in this region

Provider Loan Amount Rate Term (Months) Rating
LendCare
- - Up to 60
-
X-bankers
$5,000+ - Up to 60
$5,000+
ECN Capital
- - -
-
SimplyBorrowed
$500 - $5,000 - 12 - 24
$500 - $5,000
Pebble Cash
$350 - $1,000 - 2 - 12 weeks
$350 - $1,000
Refresh Financial
$1,600 - $25,000 9.47% - 20.07% APR 36 - 60
$1,600 - $25,000
Go Peer
$1,000 - $25,000 7.5% - 31.5% APR 36 - 60
$1,000 - $25,000
North’n Loans
$100 - $1,500 - -
$100 - $1,500
MDG
Up to $3,200 - -
Up to $3,200
Loan or Credit
$100 - $25,000 +4.9% -
$100 - $25,000
Instant Payday Canada
- 15% - 19% -
-
Flexiti Financial
- Up to 35% -
-
FinanceIT
$500 - $100,000  6.99% - 14.99% 12 - 240
$500 - $100,000
Diamond Financial Services
- - -
-
Climb
1800- 2900  15.99% 23 - 36
1800- 2900
Pylo Finance
$500 - $15,000 15.99 - 39.99% 6 - 60
$500 - $15,000
Fresh Start Finance
Up to $15,000 29.99% - 46.96% 9 - 60
Up to $15,000
Marble
Up to $20,000 19.44% and 31.90% 36 - 84
Up to $20,000
Money Mart
$1,000 - $15,000 19.90% - 46.90% 12 - 60 
$1,000 - $15,000
Payday King
$100 - $1,000 546% APR 14 days
$100 - $1,000
Private Loan Shop
$500 - $50,000 15 - 30% -
$500 - $50,000
Progressa
$1,000 - $15,000 19% - 46.95% 6 - 60 
$1,000 - $15,000
My Canada Payday
Up to $1,500 15% - 19% 14 days
Up to $1,500
Mr. Payday
$100 - $1,500 15% - 17% 14 -31 days
$100 - $1,500
Money Provider
$500 - $1,000 28% - 32% -
$500 - $1,000
Loan Express
- - 14 days
-
Meridian Credit Union
Up to $35,000 5.15%+ -
Up to $35,000
Loan Away
Up to $5,000 19.9% - 45.9% APR 6 - 36
Up to $5,000
Loan & Go
$250 -$1,250 29% 3 - 6
$250 -$1,250
Lendful
$5,000 - $35,000 9.9%+ APR 36 - 60
$5,000 - $35,000
LendDirect
Up to $15,000 19.99% APR Open-end
Up to $15,000
Health Smart Financial Services
$300 - $25,000 7.95%+ 36 - 60
$300 - $25,000
GoDay
$100 - $1,500 - 14 days
$100 - $1,500
iCash
Up to $1,500 15% - 23% -
Up to $1,500
Focus Financial Inc.
Up to $1,500 Up to 59% APR 14 days
Up to $1,500
FlexFi
$2,500 + - -
$2,500 +
Eastern Loans
$500 - $1,000 28% - 32%  3 -5
$500 - $1,000
DMO Credit
$300 - $1,000 38% APR 3 - 4
$300 - $1,000
Capital Cash
$100 - $1,000 546% APR 14 days
$100 - $1,000
Cash 4 You
$1,000 -$15,000 46.93%  12 - 60
$1,000 -$15,000
Credit 700
$500 - $1,000 28% - 32%  4 - 5
$500 - $1,000
Credit Club
$100 - $1,500 90% - 390% APR 14 days
$100 - $1,500
Credit2Go
$250 - $1,000 29% APR 3 - 4
$250 - $1,000
Ledn
$500 - $1,000,000 12% 12
$500 - $1,000,000
Amber Financial
$1,000 - $50,000 4.6% – 49.96% 3 - 60 
$1,000 - $50,000
Affirm Financial
$300 - $7,500 29.9% - 39.9% 6 - 60
$300 - $7,500
310 Loan
$50 - $1,500 - 14 days
$50 - $1,500
Newstart Canada
Up to $20,000 19% - 49% 36 - 48
Up to $20,000
Ferratum
$2,000 - $10,000 18.9% - 54.9% 12 - 60
$2,000 - $10,000
SkyCap Financial
$500 - $10,000 12.99% – 39.99% 9 – 36
$500 - $10,000
Fast Access Finance
$500 – $10,000 Starting at 9.90% 12 - 36
$500 – $10,000
Fairstone
Up to $35,000 26.99% – 39.99% 6 - 60
Up to $35,000
Lending Mate
$2,000 – $10,000 34.9% – 43% 12 - 60
$2,000 – $10,000
Consumer Capital Canada
$500 - $12,500 19.99%+ 12 - 60
$500 - $12,500
Lamina
Up to $1000 30% 3 - 5
Up to $1000
Loans SOS
Up to $5,000 60% 6 - 60
Up to $5,000
514 Loans
Up to $3,000 22% - 35% 3 - 4
Up to $3,000
CashCo
Up to $7,000 - 6 – 60
Up to $7,000
UrLoan
$500 - $2,500 29% - 46.95% 6 - 36
$500 - $2,500
Loan Me Now
$500-$1000 28%-32% 3
$500-$1000
Captain Cash
$500 – $750 28% – 34.4% 3
$500 – $750
BC Loans
$500 – $750 23% - 34.4% 3 – 12
$500 – $750
Urgent Loans
$300 - $1500 27% - 35% 3 - 4
$300 - $1500
easyfinancial
$500 - $35,000 29.99% – 46.96% 9 - 60
$500 - $35,000
Mogo Finance
$300 – $35,000 5.9% - 45.9% 24 - 60
$300 – $35,000
Cash Money
$50 – $10,000 - Up to 62 days
$50 – $10,000
Borrowell
$1,000 - $35,000 5.99% to 29.19% 36 - 60
$1,000 - $35,000
Magical Credit
Up to $20,000 19.99% - 46.8% 6 - 60
Up to $20,000
Provider Loan Amount Rate Term (Months) Rating
BarterPay
- - -
-
Clearbanc
$10,000 - $10,000,000 6% - 12.5% -
$10,000 - $10,000,000
SNAP Financial Group
- - -
-
GE Capital
- - -
-
We Can Financial
- - -
-
Wajax Equipment
- - -
-
Key Equipment Financing
- - -
-
Corl
$10,000 - $1,000,000 - -
$10,000 - $1,000,000
Yellowhead Equipment Finance Ltd
- - -
-
Toronto Truck Loan Ltd
- - -
-
Specialty Truck Financing
- - -
-
Travelers Financial
- - -
-
Peel Financial
- - -
-
Pioneer Financial Services
$5,000 - $1,000,000 - -
$5,000 - $1,000,000
Polaris Leasing
- - -
-
Patron West
- - -
-
Payability
up to $250,000 - -
up to $250,000
Planet Financial
- - -
-
Rise
Up to $10,000 - -
Up to $10,000
Merchant Growth
$5,000 - $500,000 - 6 - 18 months
$5,000 - $500,000
Onesta
- - -
-
Lionhart Capital
$10,000- $30,000,000 Min 4.95% -
$10,000- $30,000,000
Lift Capital
- - 12 - 120
-
Leaseline
- - 24 to 60
-
Lease Direct
- - -
-
John Deere
- - -
-
Hitachi Capital Canada
- - -
-
Guardian Leasing
- - -
-
Export Development Canada
- - -
-
Essex Lease Financial Corporation
- - -
-
Equilease
- - -
-
Alliance Financing Group LTD
$5,000 - $150,000 15% + 6 - 24
$5,000 - $150,000
CanaCap
Up to $250,000 - -
Up to $250,000
CLE Capital
- - -
-
Canada Equipment Loan
- - -
-
SharpShooter Funding
$5,000 - $150,000 5.49% - 22.79% 12 - 60
$5,000 - $150,000
First West Credit Union
$500,000 - $10,000,000 - -
$500,000 - $10,000,000
PACE Credit Union
- Competitive -
-
Meridian Credit Union
Up to $35,000 - -
Up to $35,000
DUCA Credit Union
- - -
-
Laurentian Bank of Canada
Up to $250,000 - Up to 10 years
Up to $250,000
HSBC Bank Canada
- - -
-
National Bank
Up to $1,000,000 - -
Up to $1,000,000
Desjardins
Up to $100,000 - -
Up to $100,000
Canadian Imperial Bank of Commerce (CIBC)
$10,000+ - Up to 15 years
$10,000+
Scotiabank
Up to $1,000,000 -   Up to 15 years
Up to $1,000,000
Bank of Montreal (BMO)
Up to $500,000 - Up to 10 years
Up to $500,000
Royal Bank of Canada (RBC)
$5,000 - $10,000 - Up to 7 years
$5,000 - $10,000
CWB National Leasing
$3,500+ - -
$3,500+
Money Line Capital
$5,000+ 4.9% - 24.99% 18 - 48
$5,000+
Money in Motion
$10,000 - $1,000,000 4% - 14% 12 - 84
$10,000 - $1,000,000
Lease Link
Up to $75,000 - Up to 18
Up to $75,000
FundThrough
$500-$50,000 0.5% weekly 12 week cycles
$500-$50,000
Econolease Financial Services Inc.
$1,000 - $1,000,000 6% - 20% -
$1,000 - $1,000,000
Easylease Corp
Up to $5,000,000 4.5% 24 - 72
Up to $5,000,000
Capify
$5,000 - $200,000 - -
$5,000 - $200,000
Canadian Equipment Finance
$50,000 - $12,000,000 - 24 - 96
$50,000 - $12,000,000
Capital Key
$5,000 - $1,000,000+ - 1 - 60
$5,000 - $1,000,000+
Cashbloom
$5,000 - $1,000,000 - 3 - 24
$5,000 - $1,000,000
BFS Captial
$5,000 - $5,000,000 - 4 - 18
$5,000 - $5,000,000
BDC
Up to $100,000 6.05% + 60
Up to $100,000
Baron Finance
$10,000+ 18% - 22% -
$10,000+
B2B Bank
$10,000 - $300,000 4.70% - 5.45% -
$10,000 - $300,000
AOne Financial Solutions
Up to $5,000,000 5% - 10% 12 - 60
Up to $5,000,000
Borrowell
$1,000 - $35,000 5.6% – 25.5% 36 – 60
$1,000 - $35,000
iCapital
$5,000 - $250,000 - 3-18
$5,000 - $250,000
Lendified
$5,000 - $150,000 - 3 - 24
$5,000 - $150,000
IOU Financial
$5,000 – $100,000 15% + 12 – 18
$5,000 – $100,000
Company Capital
$5,000 – $100,000 Starting at 6.87% 3 – 18
$5,000 – $100,000
OnDeck
$5,000-$250,000 8% - 29% APR 6 - 18
$5,000-$250,000
Lending Loop
$5,000 – $500,000 Starting at 5.9% 3 – 60
$5,000 – $500,000
SkyCap Financial
$500 - $10,000 12.99% – 39.99% 9 – 36
$500 - $10,000
Thinking Capital
Up to $300,000 - -
Up to $300,000
Provider Loan Amount Rate Term (Months) Rating
Go Auto
- - 12 - 96
-
Eden Park
- - -
-
Auto Loan Solutions
- 0% - 29.5% -
-
WeFinanceCars
- + 4.9% -
-
Walker Financial Services
- - -
-
Rifco
- - -
-
National Powersports Financing
- - -
-
LMG Finance
- - -
-
Loans2Go
- - -
-
Leisure Trailer Sales
- - -
-
iA Auto Finance
- +8.99% -
-
Gamache Group
- - -
-
Royal Bank of Canada (RBC)
$5,000 - $10,000 - up to 84
$5,000 - $10,000
Laurentian Bank of Canada
Up to $250,000 - 12 - 60
Up to $250,000
National Bank
Up to $1,000,000 - up to 96
Up to $1,000,000
Desjardins
Up to $100,000 - 6 - 96
Up to $100,000
Canadian Imperial Bank of Commerce (CIBC)
$10,000+ - 12 - 96
$10,000+
Scotiabank
Up to $1,000,000 - up to 96
Up to $1,000,000
Daimler Truck Financial
- - up to 72
-
DealerPlan Financial
- - -
-
Coast Capital
- - -
-
Canada Auto Finance
$5000 - $45,000 4.90 % - 29.95% APR 36 - 72 
$5000 - $45,000
Credit River Capital Inc
- - -
-
Capital Trust Financial
- - -
-
Canada Car Loans
- - -
-
Car Loans Canada
$7500 - $59,995 3.95% + 12 - 96
$7500 - $59,995
Car Creditex
- Up to 49.9% -
-
Auto Capital Canada
- - -
-
Carfinco
- - Up to 84
-
Canada Drives
$500 - $35,000 $29.99% – 46.96% 9 - 60
$500 - $35,000
Prefera Finance
Up to $30,000 - -
Up to $30,000
Prudent Financial Services
Up to $25,000 5.75% - 9.9% 12 - 60
Up to $25,000
Dixie Auto Loans
- - -
-
Approve Canada
- - -
-
2nd Chance Automotive
- 4.2%+ -
-
Newstart Canada
Up to $20,000 19% - 49% 36 - 48
Up to $20,000
SkyCap Financial
$500 - $10,000 12.99% – 39.99% 9 – 36
$500 - $10,000
Splash Auto Finance by Rifco
Up to $50,000 - -
Up to $50,000
Carloans411
$5,000 – $40,000 - 12 – 72
$5,000 – $40,000
AutoArriba
- - Maximum 84
-
Provider Loan Amount Rate Term (Months) Rating
Instant Loans Canada
$1,000 - $35,000 - 24 - 60
$1,000 - $35,000
Newstart Canada
Up to $20,000 19% - 49% 36 - 48
Up to $20,000
Fast Access Finance
$500 – $10,000 Starting at 9.90% 12 - 36
$500 – $10,000
BHM Financial
Up to $25,000 - 12 - 60
Up to $25,000
Provider Loan Amount Rate Term (Months) Rating
Mortgage Alliance
- 2.74% - 6.30% 12 - 120
-
Paradigm
- - -
-
Verico
- - -
-
True North Mortgage
- 2.64% - 4.45% 12 - 120
-
Tangerine
$50,000+ 2.74% - 3.49% 12- 120
$50,000+
Think Financial
- - 36 - 60
-
Turnedaway
- - -
-
REICO
- - -
-
Motusbank
- 2.79% - 6.00%  6 - 60 
-
Northwood Mortgage
- 2.74% - 4.45% 12 - 120
-
Matrix Mortgage Global
- - -
-
Mortgage Architects
- 2.74% - 3.70% 6 - 120
-
Keystone Finance Solutions
- - -
-
Finser Mortgages
- 2.79% - 4.45% -
-
IntelliMortgage
- - -
-
Invis
- 2.69% - 3.95% 6 - 120 
-
Manzil
up to 4,000,000 3.49% - 5.49% 12 - 300
up to 4,000,000
Equitable Bank
$25,000 - $800,000 4.59% - 5.64% 6 - 60
$25,000 - $800,000
Dominion Lending Center
- - -
-
Fisgard Asset Management
- -- -
-
First National
- 2.84% - 7.30% -
-
CMLS Financials
$100,000 - $750,000 - 12 - 120
$100,000 - $750,000
CHIP Reverse Mortgage
min 25,000 4.99% - 5.59% 6 - 60
min 25,000
CanWise
- 2.23% - 4.45% -
-
Centum
- 2.89% - 3.79% -
-
Canadalend.com
- - -
-
Broker Financial Group Inc.
- 2.41% - 3.84% -
-
Bridgewater Bank
- - -
-
Alpine Credits
- - -
-
Provider Services Rating
BDO
Credit Counselling, Bankruptcy, Consumer Proposal
Credit Counselling, Bankruptcy, Consumer...
MNP
Personal Bankruptcy, Consumer Proposal
Personal Bankruptcy, Consumer Proposal...
Raymond Chabot
Bankruptcy, Consumer Proposal
Bankruptcy, Consumer Proposal...
Full Circle Debt Solutions Inc
Credit Counselling, Debt Management Program
Credit Counselling, Debt Management Prog...
Hoyes
Consumer Proposals, Bankruptcy, Fresh Start program, Debt Relief Consultations
Consumer Proposals, Bankruptcy, Fresh St...
Consolidated Credit
Credit Counselling, Debt Management Program
Credit Counselling, Debt Management Prog...
4Pillars
Debt Restructuring, After Care - Credit Rebuilding Program, Corporate Debt Restructuring
Debt Restructuring, After Care - Credit ...

If you’re planning to buy a home in Hamilton, odds are you’ll need the help of a mortgage to finance such a large purchase. Mortgages make it possible for Canadians to realize their dreams of homeownership.

But mortgages themselves can be expensive. Depending on the price of the home you plan to buy, among other things, a mortgage is a hefty bill that will be adding to your other monthly obligations.

Before you take out a mortgage, be sure to find out all the ins and outs of these types of loans to make an informed decision. In this article, we’ll discuss applying for a mortgage in Hamilton,  to help you determine what type of mortgage is right for you.

Get Pre-Approved For Your Mortgage in Hamilton

You may want to consider getting pre-approved for your mortgage before you start your search for a new home in Hamilton.  A pre-approval is a promise from your lender that you can get approved for a specific loan amount to finance a home purchase.

There are a couple of reasons why you may want to take this extra step before you start looking for a new home.

Should you spend your entire preapproval amount? Find out here.

Find out how much you can afford. Rather than looking at all sorts of homes in different price ranges, you should be focusing on properties that match your budget. But you won’t truly know how much you can afford and how much you can get approved for without getting pre-approved first.

A pre-approval will tell you what loan amount you can get approved for and will help you narrow your focus, save time, and avoid disappointment.

Show sellers you’re serious. Sellers want to know that the buyers they strike deals with can actually afford to pay for the home and get final approval for a mortgage.

And going into a deal with a pre-approval letter in hand will show sellers that you’re serious and will make you more competitive, especially in a seller’s market.

Just keep in mind that pre-approvals expire after 120 days. Once they expire, you will have to get pre-approved again.

Cost of Buying a House in CanadaInterested in buying a house in another Canadian city? Check out this infographic.

How to Save For a Down Payment in Hamilton

A down payment is a necessary part of securing a mortgage. In Canada, the lowest down payment amount accepted by traditional lenders is 5% of the purchase price of a home. That means a home that costs $500,000 would require a minimum down payment of $25,000 to secure a mortgage.

Considering how large down payments need to be, it can be difficult for many potential homebuyers in Hamilton to come up with that amount of money. As such, saving up for a down payment requires some diligence, sacrifice, effort, and time.

But saving up for a larger down payment is beneficial for a few reasons.

For instance, a larger down payment amount will reduce the loan amount you need to take out, making your mortgage smaller and easier to pay down. Further, if you’re able to come up with at least 20% of your purchase price, you can eliminate additional payments for mortgage default insurance, which we’ll get into later.

Here are some tips to help you save for your down payment:

  • Open an account dedicated solely for down payment savings
  • Have a certain amount automatically deducted from each paycheck and deposited into your down payment savings account
  • Cut down on your spending
  • Pay down your high-interest debt to free up more money for your down payment savings
  • Borrow from friends and family
  • Borrow from your RRSPs (Home Buyers Plan)

For more information about the Canadian Home Buyers Plan, click here.

Mortgage Insurance Rules in Hamilton

Certain types of mortgages require default insurance. More specifically, your down payment amount will dictate whether or not mortgage default insurance is required.

For example, any down payments that are less than 20% of the purchase price of the home will require an additional insurance premium to be paid on top of the regular mortgage payments. These are considered to be “high-ratio” mortgages.”

If borrowers in Hamilton are able to come up with at least 20% of the purchase price in the form of a down payment, mortgage default insurance is not required. These are considered “conventional mortgages.”

The purpose of mortgage default insurance is to protect the lender in case a borrower stops making payments and defaults on their home loan.

Types of Mortgages Available in Hamilton

There are several types of mortgages available in Hamilton, including the following:

Open mortgages. An open mortgage allows borrowers to increase the principal amount outstanding at some point in the future. These mortgages then let borrowers go back and borrow more money from the lender. There’s typically a cap on any additional amount that can be borrowed.

Closed mortgages. A closed mortgage comes with a prepayment limit, meaning you’re only allowed to pay up to 15% of the original principal balance of the mortgage each calendar year.

Fixed-rate mortgages. A fixed-rate mortgage has an interest rate that remains the same throughout the mortgage term. As such, mortgage payments stay the same, making them easier to budget for.

Variable-rate mortgages. A variable-rate mortgage comes with an interest rate that fluctuates at certain points throughout the term. The “introductory period” typically comes with a rate that’s lower than a fixed-rate mortgage, though when that period ends, the rate can go up (or down).

Conventional mortgages. A conventional mortgage requires a down payment of at least 20% of the purchase price of the home. As such, no mortgage default insurance is required.

High-ratio mortgages. A high-ratio mortgage is one in which a down payment of less than 20% is made. As such, mortgage default insurance premiums are required.

Second mortgages. Homeowners with at least 20% equity in their homes (the value of their home, less any outstanding principal balance remaining on the mortgage) may be eligible for a second mortgage, which allows them to borrow against the equity in their home to be used to cover large expenses.

Credit Score Required For a Mortgage in Hamilton

Before a lender in Hamilton approves a mortgage application, they’ll want to assess the borrower’s credit score. Generally speaking, lenders want to see a credit score of at least 680 before they agree to extend a home loan to a homebuyer.

Your credit score dictates what type of borrower you would be. A high credit score generally means that you’ve been diligent with your loan payments over the past, while a low score probably means you’ve missed a payment here and there.

If you want to get approved for a mortgage without any trouble, make sure your credit score is at least 680 or higher.

Canadian Credit ScoreFor even more information about credit scores, take a look at this.

Alternative Mortgage Options For Hamilton Borrowers With Bad Credit

What if your credit score is less than 680? Will you be out of luck when it comes to securing a mortgage?

If you’re applying with a conventional lender, you might find trouble getting approved for a mortgage Hamilton. But, there may be other options for you if you have a bad credit score.

Work with an alternative lender. Instead of seeking a mortgage with a conventional lender, consider applying for a home loan with an alternative lender in Hamilton (click here for more information). These lenders place less emphasis on a borrower’s credit score and more emphasis on their income, assets, down payment amount, and most recent payment history.

Just keep in mind that if you are approved with this type of lender, you’ll be paying a higher interest rate compared to a conventional loan.

Take out a bridge loan. You may be able to make your dreams of homeownership come true by taking out a customized short-term solution such as a bridge loan. These types of loans can help you take advantage of the borrowing potential of your current home to help cover an expense if you have trouble getting similar financing from a traditional lender.

A bridge loan is similar to a regular mortgage loan but is used to get access to

loans at a lower rate in the future while helping to improve your credit score.

Get a cosigner. If you know someone who you trust and has a good credit score, ask them if they would be willing to cosign your home loan with you. If they assume this position, they would be responsible for taking over the mortgage payments if you are no longer able to make them yourself.

Take time to improve your credit score. Perhaps the best thing to do would be to give yourself some time to improve your credit score to increase the chances of getting approved in the future.

The following steps can help your credit score increase:

  • Pay all bills on time
  • Use less than 20% to 30% of your limit on your credit card every month
  • Make more than your minimum credit card payments
  • Don’t apply for new credit card or loans
  • Keep old credit accounts open
  • Don’t close any accounts that still have a balance remaining

Do you know how the mortgage stress test is going to affect your approval? Learn more here.

Hidden Costs of Buying a House in Hamilton

Buying a house in Hamilton is obviously a huge purchase and a big expense to add to the books. But in addition to the mortgage payments that must be made to pay down the loan, there are several other expenses that many buyers – especially first-timers – may not be aware of.

It’s important to get familiar with all expenses related to buying and paying for a home before getting into this large financial commitment:

  • Closing costs, such as appraisals, lender fees, underwriting fees, lawyer fees title fees
  • Mortgage interest
  • Home inspections
  • Property taxes
  • Property insurance
  • Utilities
  • Maintenance
  • Repairs

For more information about closing costs in Ontario, click here.

Comparing Different Mortgages in Hamilton

You’d be well-advised to shop around for a mortgage before settling on one. To do this effectively, you’ll want to make sure that you compare key components of each mortgage product to choose the one that’s best for you. Here are the components that you’ll want to compare between mortgages:

  • Interest rate
  • Term
  • Amortization period
  • Prepayment options
  • Penalty fees
  • Variable- versus fixed-rate

Mortgage Payment Options

Mortgages are types of installment loans, which means the entire loan amount is repaid in installments over time. The frequency in which the payments are made to pay back the loan can vary based on what your lender offers and what you’re most comfortable with.

The most common payment frequency is monthly, which means payments are made once a month. But other payment options are also available, including:

  • Semi-monthly – two payments a month
  • Accelerated bi-weekly- payment every two years
  • Weekly – one payment per week

Did you know that you could be charged a penalty for prepayment? Check out this article.

Amortization Periods

The amortization period of your mortgage refers to the entire length of time that you have to repay the loan amount in full. You have a few options, including short or long-term amortizations.

Short-term amortizations are attractive because they allow mortgages to be repaid sooner than long-term amortizations. And as such, much less is paid toward interest, making them more affordable overall. But because you have less time to pay off the mortgage, the monthly payments will be much higher.

Long-term amortizations tend to be more popular among borrowers because the monthly payments are much smaller as a result of having much more time to fully repay the loan. That said, it will cost the borrower much more in interest as a result of the long time period to repay the loan.

Which amortization length is best for you? Check out this article to find out.

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