Mortgages Charlottetown - Compare Providers
| Provider | Loan Amount | Rate | Term (Months) | Rating | |||
|---|---|---|---|---|---|---|---|
| 0 | 0 |  | Up to $50,000 | Prime – 35% | 3 – 120 | ||
| 1 | 1620777600 |  | Up to $35,000 | 9.99% – 35% | 6 – 60 | ||
| 2 | 1569974400 |  | Up to $1,500 | $14 per $100 | Up to 62 days | ||
| 4 | 1545264000 |  | Up to $5,000 | 34.37% | – | ||
| 5 | 1543622400 |  | Up to $60,000 | 19.99% – 34.99% | 6 – 120 months | ||
| 6 | 1545264000 |  | $500 – $100,000 | 29.99% – 35% | 9 – 84 | ||
| 7 | 1552262400 |  | $500 – $18,000 | 29.9% or 34.28% | 6 – 60 | ||
| 8 | 1545264000 |  | $500 – $10,000 | 12.99% – 34.99% | 9 – 60 months | ||
| 9 | 1692748800 |  | Up to $500 | 0% | Up to 65 days | ||
| 10 | 1666051200 |  | $250 | 0% | – | ||
| 13 | 1545177600 |  | $100 – $20,000 | Up to 35% | Up to 60 | ||
| 14 | 1579478400 |  | $850 – $1,600 | 19.8% – 34.95% | 36 months | ||
| 15 | 1545350400 |  | $500 – $1000 | Up to 32% | 3 | ||
| 17 | 1580774400 |  | $1,000 – $25,000 | 8.99% – 34.99% | 36 or 60 | ||
| 18 | 1695254400 |  | $500 – $5,000 | Up to 32% | 3 – 4 | ||
| 19 | 1582243200 |  | – | – | Up to 60 | ||
| 20 | 1548720000 |  | $500 – $1,000,000 | 7.9% | 12 | ||
| 21 | 1545177600 |  | Up to $35,000 | Starting at 12.99% | Up to 60 | ||
| 22 | 1683676800 |  | $15,000 | 6.7% | Up to 60 | ||
| 23 | 1551139200 |  | Up to $15,000 | 34.99% | Open-end |
| Provider | Loan Amount | Rate | Term (Months) | Rating | |||
|---|---|---|---|---|---|---|---|
| 0 | 0 | | Up to $50,000 | Prime – 35% | 3 – 120 | ||
| 1 | 1545955200 |  | $1,000 – $300,000 | 5.49% – 22.79% | 12 – 60 | ||
| 2 | 1669852800 |  | $10,000 – $300,000 | – | 3 – 24 | ||
| 3 | 1725321600 |  | Up to $40,000 | $0.75 per $1,000 per day | – | ||
| 4 | 1545177600 |  | $5,000 – $500,000 | 4.96% – 24.93% | 1 – 60 | ||
| 5 | 1545177600 |  | $5,000 – $300,000 | 9% – 35% | Varies by product | ||
| 6 | 1545350400 |  | $15,000 – $1,500,000 | – | 6 – 36 | ||
| 7 | 1714089600 |  | $10,000 – $2,000,000 | 10%+ | Up to 36 | ||
| 8 | 1714089600 |  | $10,000 – $20,000,000 | – | – | ||
| 8 | 1545264000 | | $500 – $10,000 | 12.99% – 34.99% | 9 – 60 months | ||
| 24 | 1607558400 |  | $500 – $50,000 | Varies | 6 – 60 | ||
| 100 | 1548720000 |  | Up to $100,000 | – | – | ||
| 100 | 1548720000 |  | $10,000 – $300,000 | – | – | ||
| 100 | 1550534400 |  | $1,000 – $1,000,000 | 6% – 20% | – | ||
| 100 | 1550534400 |  | $5,000 – $200,000 | – | – | ||
| 100 | 1551398400 |  | $3,500+ | – | – | ||
| 100 | 1552262400 |  | Up to $1,000,000 | – | – | ||
| 100 | 1575590400 |  | – | – | – | ||
| 100 | 1575590400 |  | – | – | – | ||
| 100 | 1575849600 |  | Up to $250,000 | – | – |
| Provider | Loan Amount | Rate | Term (Months) | Rating | |||
|---|---|---|---|---|---|---|---|
| 0 | 0 | | Up to $50,000 | Prime – 35% | 3 – 120 | ||
| 1 | 1560124800 |  | Up to $100,000 | 3.99% - 19.9% | 24 -96 | ||
| 2 | 1679529600 |  | Varies | Varies | 24 – 96 months | ||
| 3 | 1632960000 |  | Min. $10,000 | 6.93% – 19.99% | 18 – 96 | ||
| 6 | 1597104000 |  | – | – | – | ||
| 6 | 1569974400 |  | – | Up to 29.99% | 12 – 96 | ||
| 8 | 1545264000 | | $500 – $10,000 | 12.99% – 34.99% | 9 – 60 months | ||
| 8 | 1624233600 |  | $5,000 – $75,000 | – | 12 – 96 | ||
| 24 | 1607558400 | | $500 – $50,000 | Varies | 6 – 60 | ||
| 100 | 1548633600 |  | – | Starting at 4.2% | – | ||
| 100 | 1551830400 |  | Starting at $5,000 | – | – | ||
| 100 | 1551830400 |  | – | – | – | ||
| 100 | 1561507200 |  | – | – | – | ||
| 100 | 1575590400 |  | – | – | – | ||
| 100 | 1575849600 |  | – | – | – | ||
| 100 | 1575849600 |  | $5,000 – $45,000 | 4.90 % – 29.95% | – | ||
| 100 | 1575849600 |  | – | – | – | ||
| 100 | 1577059200 |  | – | – | – | ||
| 100 | 1577059200 |  | – | – | – | ||
| 100 | 1578873600 |  | – | Starting at 10.99% | – |
| Provider | Loan Amount | Rate | Term (Months) | Rating | |||
|---|---|---|---|---|---|---|---|
| 0 | 0 | | N/A | N/A | N/A | ||
| 1 | 1517097600 |  | $10,000 – $500,000 | Starting at 10% | – | ||
| 2 | 1688601600 |  | Min $110,000 | 4.14% – 6.29% | 24– 120 | ||
| 3 | 1679616000 |  | $100,000 – $2,000,000 | Varies | 12 – 60 | ||
| 3 | 1726531200 |  | $5,000 + | 6% – 16% | 12 – 60 | ||
| 4 | 1690934400 |  | – | – | – | ||
| 5 | 1700524800 |  | – | - | - | ||
| 100 | 1577059200 |  | – | – | – | ||
| 100 | 1578873600 |  | – | – | – | ||
| 100 | 1580860800 |  | – | – | – | ||
| 100 | 1580860800 |  | – | – | – | ||
| 100 | 1580860800 |  | – | – | – | ||
| 100 | 1580688000 |  | – | – | 6 – 60 | ||
| 100 | 1580860800 |  | – | 2.99% – 5.49% | 6 – 60 | ||
| 100 | 1579478400 |  | – | 4.54% – 7.49% | 6 – 120 | ||
| 100 | 1574899200 |  | – | – | 12 – 60 | ||
| 100 | 1627344000 |  | – | 4.50% – 5.97% | 12 – 60 | ||
| 100 | 1580860800 |  | $50,000+ | – | 12 – 120 | ||
| 100 | 1581033600 |  | – | 4.19% – 6.04% | 12 – 120 | ||
| 100 | 1560124800 |  | – | 4.64% – 5.80% | 1 – 10 years |
| Provider | Services | Rating | |||
|---|---|---|---|---|---|
| 0 | 0 | | Debt Consolidation Program, Debt Settlement Program, Consumer Proposal, Bankruptcy Consultation | ||
| 100 | 1576368000 |  | Credit Counselling, Debt Management Program | ||
| 100 | 1576540800 |  | Credit Counselling, Debt Management Program | ||
| 100 | 1576540800 |  | Credit Counselling, Bankruptcy, Consumer Proposal |
A mortgage can be a particularly useful tool when you’re an aspiring homeowner in Charlottetown. That’s because a mortgage can help you finance an otherwise unaffordable home over time, rather than you having to shell out hundreds of thousands of dollars right away. Curious to know how the mortgage process can help you purchase a home in Charlottetown? Keep reading for all the information you need.
The Importance of Your Down Payment
One of the first steps to take when you’re planning to purchase a house is to save as much money as possible for a sizeable down payment. This is when you pay an initial lump sum of cash upfront to both secure your mortgage in Charlottetown and give your lenders faith in your ability to afford the full home purchase. Making a solid down payment is also beneficial because:
- You might not require mortgage default insurance
- Your mortgage payments will be less expensive
- You’ll be able to purchase your home faster and be out of debt quicker
Planning to borrow money for your down payment? Click here to know how.
Mortgage Default Insurance
Did you know that there’s an additional way you can save money through your down payment, besides reducing your overall mortgage balance? This has to do with mortgage default insurance, which you may have to purchase when you make a smaller down payment. It goes something like this:
- A typical mortgage default insurance premium equals 2-4% of the home’s total purchase price.
- With a down payment of 20% or more of the home’s purchase price, mortgage default insurance will not be necessary. As such, you can potentially qualify for a conventional mortgage, which will effectively save you money over time.
- However, a 5-19.99% will still help you secure a high-ratio mortgage, wherein you’ll have to purchase mortgage default insurance in order to qualify at all.
Click here if you’d like to know how to avoid CMHC fees.
Saving For Your Down Payment
Even though making a down payment of 20% or more isn’t possible for all homeowners, it’s still important to make the largest down payment you can comfortably afford. Consider it as an investment for your future. The bigger the investment, the greater the potential reward. Some ways of saving for your down payment include:
- Set up automatic savings and payments – This way, you can dedicate a portion of each paycheck toward your down payment.
- Start budgeting appropriately – Cut out all unnecessary expenses and prepare yourself for the essential ones that come with homeownership (groceries, utilities, home repairs, taxes, etc.).
- Boost your income as much as possible – While asking for a raise, working extra hours, taking on a second job or a side hustle may not always be convenient, they’re all good ways of both affording a larger down payment and making sure you’ll never miss a mortgage payment.
- Invest in an RRSP Home Buyer’s Plan – If you fill out form T1036 with the Canada Revenue Agency, you’re permitted to use $25,000 from your RRSP, tax-free, within a single taxation year. You can then put that money toward your down payment. By the following year, however, you’ll need to start repaying the borrowed amount. 15 years is the maximum repayment time to avoid tax penalties, so be sure to factor that cost into your budget.
Interested in the cost of buying a house in your province? Click here. Hidden Costs of Buying a Home
Your mortgage payments, default insurance, interest rate, utilities, and down payment can all cost a pretty penny. In addition, there are a few hidden home buying costs that you may not have considered, which should also be factored into your homeowner’s budget. These costs include but aren’t restricted to:
- Additional taxes – When you purchase real estate, there are a few other tax costs that may come up, such as:
- Property taxes
- Land transfer tax (depending on your province)
- Welcome taxes
- Foreign-Home Buyer Tax (if you’re not a Canadian citizen)
- School taxes
- Goods and Services Tax (if you buy or build a brand new condo or home)
- Harmonized Sales Tax (depending on your province)
- Appraisal and Home Inspection – Before you can mortgage a home, the property must be appraised to determine its value and inspected to confirm that everything is up to code. Each of these procedures, while necessary, can cost a lot. Don’t worry, the peace of mind that follows will be worth the price.
- General maintenance – Property maintenance is an essential part of any homeowner’s budget. Clogged pipes, malfunctioning appliances, leaky roofs, and all manner of recurring fixes may need to be done with any home, especially given Canada’s unpredictable weather. Even a new home is going to start having these problems at some point.
Take a look at some other hidden homeowner costs so you can budget effectively.
Comparing Mortgage Offers
When trying to find a mortgage in Charlottetown, take some time to compare mortgage offers, as all lenders and mortgage brokers operate differently. While many homeowners will simply choose a lender the offers the cheapest rates, there are many other factors to consider, such as:
- Mortgage Term – Every mortgage in Charlottetown is going to be divided into a series of terms, which will vary in length (the most common term in 5 years). Whenever a term ends, you can try to renegotiate for a better interest rate with your current lender or apply with a new one.
- Amortization – This refers to the total time it takes to pay off your mortgage. In Canada, typical amortization periods last from 20-30 years. However, some lenders and brokers offer mortgages that can last up to 35 years.
- Prepayment options – Some lenders allow you to increase your mortgage payment amounts or make one time payments toward your full balance without penalty, both of which would help you get out of debt quicker. However, not all mortgage sources offer this as an option. For those that do, a mandatory penalty fee may be imposed for not adhering to your original mortgage contract.
- Open vs. Closed Mortgages – Relating to your mortgage term and prepayment ability, certain lenders offer two kinds of mortgage option, each with its own merits and drawbacks:
- Open mortgages allow for more flexible term lengths and the chance to make mortgage payments whenever you want. That said, this option will usually come with a higher interest rate.
- Closed mortgages have lower interest rates and often allow for prepayments and lump sum payments toward the total balance. Then again, terms are often longer and non-negotiable. Penalties for contract breach may apply until the mortgage reaches maturity.
Read this if you’re not sure whether to get a mortgage with a bank or mortgage broker.
Fixed vs. Variable Rate Mortgages
While the considerations above are important, and the lowest mortgage rate might not be what you need, it’s also essential to factor in the two types of interest rate you can apply for. Although some lenders won’t offer both types of rates, generally speaking, you may be able to choose from a:
- “Fixed” (non-adjustable) rate – This rate does not change during your mortgage term (you can often negotiate a new rate when a term ends). Though fixed rates can sometimes be higher than variable ones, they are easier to calculate and factor into your budget.
- “Variable” (adjustable) rate – This rate fluctuates with the Bank of Canada’s prime rate for lending, which goes up and down according to the state of our country’s economy. While this is riskier when rates climb, it can also be more beneficial for your finances when they drop lower than the average fixed rate.
Your Mortgage Payment Options
Another reason to compare mortgage lenders and brokers in Charlottetown is that many of these sources will offer different mortgage payment options, each of which could have a significant impact on your financial health. While not all lenders offer each type, here some of the main payment options that homebuyers can choose from:
- Monthly – 12 payments per year (1 payment per month)
- Weekly – 52 payments per year (1 payment per week)
- Bi-weekly – 26 payments per year (1 payment every 2 weeks)
- Accelerated bi-weekly – 26 larger payments per year (half your monthly payment every 2 weeks)
- Accelerated weekly – 52 larger payments per year (one-quarter of your monthly mortgage payment every week)
Ready to Take On a Mortgage In Charlottetown?
If you’re ready to become a homeowner, then Loans Canada has your back. We can connect you with the best sources of mortgages in Charlottetown. Simply contact us today or apply below!
