📅 Last Updated: October 4, 2021
✏️ Written By Lisa Rennie
🕵️ Fact-Checked by Caitlin Wood

Mortgages Hamilton - Compare Providers

ProviderLoan AmountRateTerm (Months)Rating
00 Up to $50,000Prime – 35%3 – 120
Up to $50,000
201718582400 Wagepay$100 – $1500 Max of $8 per $100 & 24% interest up to 62 days Next payday (max 62 days)
$100 – $1500
1001709683200 DashloansUp to $1,250 Up to 32% 90 – 150 days
Up to $1,250
231700524800 ParachuteUp to $25,000 24.99% – 29.99% 30 or 60
Up to $25,000
161700524800 AimFinance$100 – $1,000 29% – 35% 9 – 24
$100 – $1,000
181695254400 GoLoans$500 – $5,000 Up to 32% 3 – 4
$500 – $5,000
71692748800 BreeUp to $350 0% Up to 65 days
Up to $350
1001688083200 City Lending Centers (CLC)$150 – $1,600 10 – 35% 3 – 6
$150 – $1,600
1001686182400 Northstar Brokers$300 – $3,000 18% + fees 6
$300 – $3,000
1001686182400 Deposit My Cash Now$300 – $3,000 18% + fees 6
$300 – $3,000
1001686182400 My Next Pay$300 – $3,000 18% + fees 6
$300 – $3,000
221683676800 Windmill Microlending$15,000 6.7% Up to 60
$15,000
21670889600 Fora$1,000 – $15,000 19.9% – 34.9%
$1,000 – $15,000
81666051200 Nyble$250 0%
$250
1001643932800 FlexMoney$500 – $15,000 Starting at 18.9% 6 – 60
$500 – $15,000
1001642723200 Pay2DayUp to $1,500 $14 per $100 borrowed 14 days
Up to $1,500
1001623369600 AfterpayVaries 0% 6 or 8 weeks
Varies
11620777600 Spring FinancialUp to $35,000 9.99% – 35% 6 – 60
Up to $35,000
241607558400 Helium Loans$500 – $50,000 Varies 6 – 60
$500 – $50,000
1001600646400 Iceberg Finance$1,000 – $35,000 12.99% – 29.99% 12 – 84
$1,000 – $35,000
1001598918400 LM FinancialUp to $15,000
Up to $15,000
1001598832000 LM Credit$500 – $15,000 Start at 10.99% 9 – 60
$500 – $15,000
1001551830400 Prudent Financial ServicesUp to $500,000 5.75% – 9.9%
Up to $500,000
191582243200 LendCare Up to 60
1001581033600 X-bankers$5,000+ Up to 60
$5,000+
1001580860800 SimplyBorrowed$1,500 – $10,000 12 – 60
$1,500 – $10,000
171580774400 goPeer$1,000 – $25,000 8.99% – 34.99% 36 or 60
$1,000 – $25,000
1001579478400 North’n Loans$100 – $1,500
$100 – $1,500
141579478400 MDG$850 – $1,600 29.78% – 34.95% 36 months
$850 – $1,600
1001579219200 Instant Payday CanadaUp to $1,500 $14 per $100 borrowed Up to 30 days
Up to $1,500
1001576713600 Financeit$500 – $100,000 Starting at 12.99% Up to 60
$500 – $100,000
1001562198400 Pylo Finance$500 – $15,000 15.99 – 35% 6 – 60
$500 – $15,000
101552262400 Money Mart$500 – $18,000 29.9% or 34.28% 6 – 60
$500 – $18,000
1001551830400 Payday King$100 – $1,000 $14 per $100 borrowed 14 days
$100 – $1,000
1001551830400 Progressa$1,000 – $15,000 19% – 34.95% 12 – 60
$1,000 – $15,000
1001551398400 My Canada PaydayUp to $1,500 $14 per $100 borrowed 14 days
Up to $1,500
1001551398400 Mr. Payday$100 – $1,500 $14 per $100 borrowed 14 – 31 days
$100 – $1,500
1001551398400 Loan ExpressUp to $1,500 $14 per $100 borrowed 14 days
Up to $1,500
1001546128000 Loan AwayUp to $5,000 19.9% – 35% 6 – 36
Up to $5,000
1001551139200 Loan & Go$250 – $1,250 29% – 32% 3 – 6
$250 – $1,250
231551139200 LendDirectUp to $15,000 34.99% Open-end
Up to $15,000
1001550534400 GoDay$100 – $1,500 $14 per $100 borrowed 14 days
$100 – $1,500
111569974400 iCashUp to $1,500 $14 per $100 borrowed Up to 62 days
Up to $1,500
1001550534400 Focus Financial Inc.Up to $1,500 $14 per $100 borrowed 14 days
Up to $1,500
1001550534400 Eastern Loans$500 – $1,000 23% 3 – 6
$500 – $1,000
1001550534400 DMO Credit$300 – $1,000 Up to 38% 3 – 4
$300 – $1,000
1001549411200 Capital Cash$100 – $1,500 $14 per $100 borrowed 14 days
$100 – $1,500
1001549411200 Cash 4 You$1,000 – $15,000 34.37% 9 – 60
$1,000 – $15,000
1001567555200 Cash Depot$300 – $3,000 18% + fees 6
$300 – $3,000
1001549238400 Credit Club$100 – $1,500 $14 per $100 borrowed Up to 62 days
$100 – $1,500
1001549238400 Credit2Go$250 – $1,500 23.99% – 29.99% 3 – 4
$250 – $1,500
201548720000 Ledn$500 – $1,000,000 7.9% 12
$500 – $1,000,000
1001548720000 Amber Financial$500 – $50,000 Starting at 8.99% 3 – 120
$500 – $50,000
61545264000 SkyCap Financial$500 – $10,000 12.99% – 34.99% 9 – 60 months
$500 – $10,000
1001545264000 Fast Access Financial$500 – $10,000 Starting at 9.90% 12 – 36
$500 – $10,000
41543622400 Fairstone FinancialUp to $60,000 19.99% – 34.99% 6 – 120 months
Up to $60,000
1001545350400 Lamina$300 – $1500 Starting at 18% 3 – 7
$300 – $1500
1001545350400 514 Loans$300 – $3,000 22% – 32% 3 – 4
$300 – $3,000
121545350400 Cashco FinancialUp to $7,000 35% 6 – 60
Up to $7,000
151545350400 LoanMeNow$500 – $1000 Up to 32% 3
$500 – $1000
1001545350400 Captain Cash$500 – $750 23% 3 – 4
$500 – $750
1001545350400 BC Loans$500 – $750 22% 90 – 120 days
$500 – $750
1001545350400 Urgent Loans$300 – $3,000 27% – 35% 90 – 120 days
$300 – $3,000
51545264000 easyfinancial$500 – $100,000 29.99% – 35% 9 – 84
$500 – $100,000
31545264000 Mogo FinanceUp to $5,000 34.37%
Up to $5,000
91568937600 Cash MoneyUp to $10,000 Varies by product Varies by product
Up to $10,000
211545177600 BorrowellUp to $35,000 Starting at 12.99% Up to 60
Up to $35,000
131545177600 Magical Credit$100 – $20,000 Up to 35% Up to 60
$100 – $20,000
ProviderLoan AmountRateTerm (Months)Rating
00 Up to $50,000Prime – 35%3 – 120
Up to $50,000
31725321600 iCommissionUp to $40,000 $0.75 per $1,000 per day
Up to $40,000
81714089600 Primed Loans$10,000 – $20,000,000
$10,000 – $20,000,000
71714089600 OnTap Capital $10,000 – $2,000,000 10%+ Up to 36
$10,000 – $2,000,000
21669852800 Driven$10,000 – $300,000 3 – 24
$10,000 – $300,000
1001648512000 2M7 Financial Solutions$1000 - $250,000
$1000 - $250,000
1001620345600 TD Bank 12 – 60
1001611878400 Accord Financial
241607558400 Helium Loans$500 – $50,000 Varies 6 – 60
$500 – $50,000
1001603756800 Accelerated Payments
1001598918400 Loop
1001592438400 Core Capital Group Inc
1001585612800 BarterPay 6 – 60
1001580947200 Corl$200,000 – $5,000,000
$200,000 – $5,000,000
1001580860800 Travelers Financial
1001580860800 Peel Financial
1001580860800 Pioneer Financial Services$5,000 – $1,000,000
$5,000 – $1,000,000
1001580860800 Polaris Leasing
1001580860800 Patron West
1001580860800 Payability
1001580860800 Planet Financial
1001580688000 RiseUp to $10,000 Prime + 2.5% Up to 60
Up to $10,000
1001580256000 Merchant Growth$5,000 – $800,000 6 – 24
$5,000 – $800,000
1001579478400 Lionhart Capital$10,000 – $30,000,000
$10,000 – $30,000,000
1001579478400 Lift Capital$50,000 – $5,000,000 3 – 36
$50,000 – $5,000,000
1001579478400 Leaseline 24 – 60
1001579478400 Lease Direct
1001579478400 John DeereUp to $1,200,000 12 – 84
Up to $1,200,000
1001579046400 Hitachi Capital Canada
1001577059200 Export Development Canada
1001577059200 Essex Lease Financial Corporation
1001577059200 Equilease
1001575849600 Alliance Financing Group LTD$5,000 – $150,000 Starting 15% 6 – 24
$5,000 – $150,000
1001575849600 CanaCapUp to $250,000
Up to $250,000
1001575590400 CLE Capital
1001575590400 Canada Equipment Loan
11545955200 SharpShooter Funding$1,000 – $300,000 5.49% – 22.79% 12 – 60
$1,000 – $300,000
1001552262400 First West Credit Union$500,000 - $10,000,000
$500,000 - $10,000,000
1001552262400 PACE Credit Union
1001552262400 DUCA Credit Union
1001552262400 Laurentian Bank of CanadaUp to $250,000 Up to 10 years
Up to $250,000
1001552262400 National BankUp to $1,000,000
Up to $1,000,000
1001551830400 Desjardins
1001551830400 Canadian Imperial Bank of Commerce (CIBC)$10,000+ Up to 15 years
$10,000+
1001551830400 ScotiabankUp to $1,000,000 Up to 15 years
Up to $1,000,000
1001551830400 Bank of Montreal (BMO)Up to $500,000 Up to 15 years
Up to $500,000
1001551830400 Royal Bank of Canada (RBC)Starting at $5,000 Up to 84
Starting at $5,000
1001551398400 CWB National Leasing$3,500+
$3,500+
1001551398400 Money Line Capital$5,000+ 4.9% – 24.99% 18 – 48
$5,000+
1001551398400 Money in Motion$10,000 – $1,000,000 4% – 14% 12 – 84
$10,000 – $1,000,000
1001551139200 Lease LinkUp to $250,000 Up to 48
Up to $250,000
1001550534400 FundThrough$500 – $50,000 2.75% – 8.25% 12 week cycles
$500 – $50,000
1001550534400 Econolease Financial Services Inc.$1,000 – $1,000,000 6% – 20%
$1,000 – $1,000,000
1001550534400 Easylease CorpUp to $5,000,000 24 – 72
Up to $5,000,000
1001550534400 Capify$5,000 – $200,000
$5,000 – $200,000
1001549411200 Canadian Equipment Finance$50,000 – $12,000,000 24 – 96
$50,000 – $12,000,000
1001548720000 BDCUp to $100,000
Up to $100,000
1001548720000 B2B Bank$10,000 – $300,000
$10,000 – $300,000
1001545264000 iCapitalUp to $250,000 3 – 24
Up to $250,000
61545350400 IOU Financial$15,000 – $1,500,000 6 – 36
$15,000 – $1,500,000
51545177600 Journey Capital$5,000 – $300,000 9% – 35% Varies by product
$5,000 – $300,000
41545177600 Lending Loop$5,000 – $500,000 4.96% – 24.93% 1 – 60
$5,000 – $500,000
61545264000 SkyCap Financial$500 – $10,000 12.99% – 34.99% 9 – 60 months
$500 – $10,000
ProviderLoan AmountRateTerm (Months)Rating
00 Up to $50,000Prime – 35%3 – 120
Up to $50,000
21679529600 ClutchVaries Varies 24 – 96 months
Varies
1001643846400 Fix4 Capital$250 – $10,000 Starting at 14.99% 12 – 36
$250 – $10,000
31632960000 SafeLendMin. $10,000 6.93% – 19.99% 18 – 96
Min. $10,000
81624233600 Auto Credit Deals $5,000 – $75,000 12 – 96
$5,000 – $75,000
241607558400 Helium Loans$500 – $50,000 Varies 6 – 60
$500 – $50,000
71606435200 Wippy$500 – $10,000 Starting at 0% 3 – 48
$500 – $10,000
1001600646400 Iceberg Finance$1,000 – $35,000 12.99% – 29.99% 12 – 84
$1,000 – $35,000
1001582761600 Go Auto 36 – 96
61582761600 Eden Park
1001582761600 Auto Loan Solutions Up to 29.5%
1001581033600 Toyloan
1001580688000 Rifco Starting at 12.9%
1001579478400 National Powersports Financing
1001579478400 LMG Finance
1001579478400 Loans2Go
1001579219200 Leisure Trailer Sales
1001578873600 iA Auto Finance Starting at 10.99%
1001578873600 Gamache Group
1001551830400 Royal Bank of Canada (RBC)Starting at $5,000
Starting at $5,000
1001552262400 National BankUp to $1,000,000 up to 96
Up to $1,000,000
1001551830400 Desjardins 6 – 96
1001551830400 Canadian Imperial Bank of Commerce (CIBC)$10,000+ 12 – 96
$10,000+
1001551830400 ScotiabankUp to $1,000,000 Up to 15 years
Up to $1,000,000
1001577059200 Daimler Truck Financial
1001577059200 DealerPlan Financial
1001575849600 Coast Capital Savings
1001575849600 Canada Auto Finance$5,000 – $45,000 4.90 % – 29.95%
$5,000 – $45,000
1001575849600 Credit River Capital Inc
1001575590400 Capital Trust Financial
61569974400 Car Loans Canada Up to 29.99% 12 – 96
1001561507200 Auto Capital Canada
11560124800 Canada DrivesUp to $100,000 3.99% - 19.9% 24 -96
Up to $100,000
1001551830400 Prefera Finance
1001551830400 Prudent Financial ServicesUp to $500,000 6 – 48
Up to $500,000
1001550534400 Dixie Auto Loans
1001548633600 2nd Chance Automotive Starting at 4.2%
61545264000 SkyCap Financial$500 – $10,000 12.99% – 34.99% 9 – 60 months
$500 – $10,000
1001545177600 Carloans411 12 – 84
ProviderLoan AmountRateTerm (Months)Rating
00 Up to $50,000Prime – 35%3 – 120
Up to $50,000
1001578873600 Instant Loans CanadaUp to $50,000 24 – 60
Up to $50,000
1001545264000 BHM FinancialUp to $50,000
Up to $50,000
ProviderLoan AmountRateTerm (Months)Rating
00 N/AN/AN/A
N/A
31726531200 Lotly$5,000 + 6% – 16% 12 – 60
$5,000 +
71708473600 Blue Pearl Mortgage
51700524800 Rocket Mortgage - -
1001695945600 Mortgage Intelligence
41690934400 Neo Mortgage
21688601600 nestoMin $110,000 4.14% – 6.29% 24– 120
Min $110,000
31679616000 Frank Mortgage$100,000 – $2,000,000 Varies 12 – 60
$100,000 – $2,000,000
41541030400 Meridian Credit Union 4.19% – 8.00% 6 – 120
1001627344000 Peoples Bank 4.50% – 5.97% 12 – 60
1001551830400 Prudent Financial ServicesUp to $500,000 Starts at 8.49%
Up to $500,000
1001581033600 Mortgage Alliance 4.19% – 6.04% 12 – 120
1001580860800 Verico
1001580860800 True North Mortgage 2.99% – 5.49% 6 – 60
1001580860800 Tangerine$50,000+ 12 – 120
$50,000+
1001580860800 Think Financial
1001580860800 Turnedaway
1001580860800 REICO
1001580688000 Motusbank 6 – 60
1001580688000 Northwood Mortgage 4.19% – 6.04% 12 – 120
1001580688000 Matrix Mortgage Global
1001579478400 Mortgage Architects 4.54% – 7.49% 6 – 120
1001578873600 Invis
1001578268800 Manzil
1001577059200 Equitable Bank Varies
1001577059200 Dominion Lending Center
1001577059200 Fisgard Asset Management
1001577059200 First National Financial LP 4.49% – 6.63% 1 – 10 years
1001574985600 CMLS Financials$10,000 – $1,000,000 4.99% – 7.29% 12 – 120
$10,000 – $1,000,000
1001574899200 CHIP Reverse Mortgage 12 – 60
1001574899200 CanWise 4.24% – 6.30%
1001560124800 Centum 4.64% – 5.80% 1 – 10 years
1001548806400 Capital Direct$10,000 – $3,000,000 Varies 12 – 24
$10,000 – $3,000,000
1001548720000 Bridgewater Bank 12 – 60
11517097600 Alpine Credits$10,000 – $500,000 Starting at 10%
$10,000 – $500,000
ProviderServicesRating
00 Debt Consolidation Program, Debt Settlement Program, Consumer Proposal, Bankruptcy Consultation
N/A (Referrer)
1001576540800 BDO Credit Counselling, Bankruptcy, Consumer Proposal
1001576540800 Raymond Chabot Bankruptcy, Consumer Proposal
1001576540800 Full Circle Debt Solutions Inc Credit Counselling, Debt Management Program
1001576368000 Consolidated Credit Credit Counselling, Debt Management Program
1001576454400 4Pillars Debt Restructuring, After Care - Credit Rebuilding Program, Corporate Debt Restructuring

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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If buying a home in Hamilton is on the agenda for you sometime soon, then it may be time to start looking into applying for a mortgage, and Loans Canada can help connect you with a third-party mortgage professional in your area.

Note: Loans Canada does not arrange, underwrite or broker mortgages. We are a simple referral service.

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