Canquest Mortgage Inc.

 

 

Mortgage Rates in Alberta, Canada

Fixed Closed Mortgage Rates

The available terms are 1, 2, 3, 4, 5, 7, and 10 years. This means that you are locked into the interest rate for the term of the mortgage. When that term is up - you then renew your mortgage for another term selected by yourself. This is the most common type of mortgage terms provided by the lenders. All mortgage terms 1- 5 have to qualify on the Benchmark rate. (4.64%) under the new mortgage rules.

When you sell your property or want to refinance and take the equity out of your property and you are not yet at the end of your term you took on your mortgage you will be subject to a payout penalty. Your penalty will depend upon the terms of your original mortgage that you signed at the time you locked in your mortgage rate. Call your existing lender and find out what the penalty may be.  On most of the fixed rate mortgage done by a A lender the penalty would be 3 month interst or Interest rate Differiental whichever is the greater.

Fixed Open Mortgage Rates

The term on this mortgage is usually a 1 year. The interest rates are usually are higher than the fixed closed 1 year termrates because it is short term money and you can pay the mortgage out anytime in the one year. There are no penalties when you decide to payout the mortgage. Most people use this type of mortgage because their existing mortgage is up for renewal and they are selling their home or they are doing renovations and then selling their existing home. Most people have very specific short term need for this type of mortgage.

Variable Rate Mortgage

There are 3 year and 5 year terms available for rate. The mortgage rate floats with prime. Most people with very good credit and good job history that don't mind watching the rates will go for this type of mortgage flexibility. Also the clients who want to move and are not sure of when that may be so they will look at the variable rate. When you are in this product the mortgage payout penalty is usually 3 month interest. You have the option to lock in at any time with the lender you have signed your mortgage with for a term greater than 3 years. Prime rate is driven up by the Bank of Canada when they move their rate.

All mortgages must qualify on the Benchmark rate of 4.64%.

Home Equity Line of Credit

Using your property equity and securing up a line of credit is becoming one of the most popular products. The lender will allow up to 65% of your equity for a mortgage registered against your title. You can also go up to 80% when you are doing two tiers; the first portion being fixed and the remaining portion (65%) as a line of credit. The lenders usually register a First Mortgage charge on your title for higher than your mortgage amount. (100% of the value of your home).  This gives you access to your funds when ever you want to use your money and you can pay it back with interest only payments per month. You can use your equity to invest in another revenue property or purchase of some stocks etc.

Extended Amortizations

You can have up to a 30 year amortization when you are doing a Conventional Mortgage. A conventional mortgage is 80% of the value of your home. 

Mortgage Rates in Alberta

 

Term (years)Rate
 Rates subject to change without notice. Commercial rates vary. Benchmark rate 4.64%
1 2.29%
2 2.24%
3 2.24%
4 2.59%
5 2.44%
7 4.19%
10 3.84%
3 (variable) 2.25%
5 (variable) 2.20%
Prime

2.70%