A cashback mortgage is exactly what you would think. The lender will give you a mortgage and some amount of cash which is added to your mortgage. You can use the cash to help pay for furniture, renovations, closing costs or whatever you want really.
Note: A cashback mortgage will typically be at a higher interest rate.
The lender will give you a mortgage for the home “as is” and add some renovation cost to your mortgage. There are many restrictions with this type of mortgage and the interest rate will most likely be higher as well.
What type of property can you get a mortgage plus improvements loan on?
An open mortgage gives you the option of repaying your mortgage at any time without having to pay a penalty.Note: The interest rate on an open mortgage is usually quite a bit higher than a closed mortgage interest rate.
There will be penalty for paying your mortgage out early.
Note: There are usually some certain exceptions in your mortgage contract.
Reverse mortgages are not common in Canada, but they are available through a limited number of lenders.
A reverse mortgage is a product to allow a homeowner, once they’ve reached the age of 55, to access the equity in their home without selling the home. Some key points of the reverse mortgage are: