What is a conventional and high ratio mortgage ? – Clancy’s Mortgage Solutions

By: Robert Clancy Mortgages & Interest Rates

What is a conventional and high ratio mortgage?

A conventional mortgage is where the buyer provides a down payment of 20% of the purchase price. In other words the mortgage may not exceed 80% of loan to value. Mortgages that exceed this limit are called High ratio mortgages.

High ratio mortgage is when the borrower has a down payment of less than 20% of the purchase price. Thus resulting in a loan to value higher than 80% and may go up to 95% with certain lenders. Once the loan is a high ratio mortgage there is an insurance fee that is set by one of these three default insurance companies CMHC, Genworth Financial, Canada Guarantee which will be done by the lender and rolled into your mortgage. High ratio mortgage allows for those who can only put 5 % down to own a home faster or buy a better home for a higher price; thus opening our market to more people.

For more information and any mortgage inquiries do not hesitate to contact Robert Clancy:

Robert Clancy, AMP,

Mortgage Agent

VERICO Safebridge Mortgage Solutions

SAFEBRIDGE Financial Group

Tel: 416 899-1467

Fax: 1866 385-4049

Email: robert@safebridgefinancial.com

www.bestratesmortgages.ca

Today’s Interest Rates

In todays Mortgage Financing Market mortgage rates are changing constantly. Today mortgages rates are based on so many different variables, it is impossible for an adviser to give a true rate quote without actually reviewing the borrower’s application first.

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BANK RATES	TERM	OUR RATES
3.89	1-YEAR	1.99
3.89	2-YEAR	1.69
3.39	3-YEAR	1.69
3.89	4-YEAR	1.74
5.34	5-YEAR	1.99
6.00	7-YEAR	3.95
6.10	10-YEAR	3.95
5.34	Variable (3yr-closed)	3.2
5.34	Variable (5yr-closed)	1.8
5.34	Variable(Open)	2.95

Guaranteed lowest mortgage rates

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