If you are looking to buy a home in Canada, this guide will help you choose a mortgage lender that will best meet your financial and housing needs. First and foremost, bear in mind that mortgage lenders in Canada fall in two general categories – prime lenders and subprime lenders. The main difference between the two groups is that the latter have specialized in providing mortgage loans to borrowers with bad or mediocre credit scores.
Founded back in 1920, Canada’s Equitable Life Insurance Company has established itself as one of the large commercial mortgage lenders in the country. Its mortgage rate service is intended for customers who are looking for low mortgage rates in British Columbia, Manitoba, New Brunswick, and Ontario. Customers may compare rates for fixed closed mortgages, variable closed mortgages, variable open, and mixed rate mortgages. The company ended the financial year 2009 with a net profit of over 31 million dollars.
First Calgary Savings is a financial services provider based in Calgary, Alberta. To its individual clients, the company offers a wide range of special mortgage loans including some very attractive features such as no application fee for pre-approved mortgage plans, guaranteed rate for sixty days from the moment you commit to paying off your mortgage loan, as well as an option for free transfer of mortgages from other financial institutions. First Calgary also offers fixed and variable rate mortgages and home equity lines of credit. Their mortgage pre-approval service is free of charge and helps customers find out how much they can borrow. As part of the service, they are informed about the amount of their regular payments. Under the First Call Real Estate Program, customers enjoy discounted mortgage rates, extended guarantee period on interest rates, and bonus vacation package. With their first mortgage, homeowners receive 3- or 4- day vacation, special savings on furniture and appliances, and a prepaid gas card. In order to apply, clients may visit a local branch of the company, call their contact center, or fill an application online. Customers also benefit from the company’s free of charge market evaluations.
Their mortgage insurance solutions, including property and life insurance policies, guarantee the homeowner’s peace of mind. Customers may opt for the critical illness package which will cover their mortgage in case they are diagnosed with life-threatening medical condition. Patients with heart attack, stroke, or cancer benefit from this insurance policy. The company offers preferred discounts and competitive rates on home insurance policies, diverse payment plans, and 24/7 claims service.
First National Financial is another prime mortgage lender based in Canada. All of their mortgage plans share a set of common features. First, the clients of First National are allowed to pay up to fifteen percent of the original principal on any payment date in a hundred dollar increments. In addition, they are allowed to execute twice as high monthly payments on their mortgage loan without a penalty fee. They may also choose to make monthly or weekly fixed payments, while the interest is compounded every six months. First National Financial offers mortgages for various property types: industrial and office use buildings, mixed use properties, retail, and multi-family units. The company offers fixed rate financing which goes as high as $30 million. The largest financing that was granted by First National amounted to $37.5 for a multi-family in Montreal. In addition, the company has provided financing for nursing home, retirement homes, industrial, and retail properties, and self storage.
If your credit score does not allow you to qualify for a mortgage loan with some of the prime mortgage lenders mentioned above, you’d better give up the idea of owning a home any time soon. Many of the sub-prime lenders promise to make your dreams for a new home come true faster than you can imagine. However, the interest rates of sub-prime mortgage lenders usually go sky-high after the first one or two years of financial tranquility. At the same time, they seldom offer mortgage insurance protection options. Almost all clients of subprime mortgage lenders in Canada are in danger of losing their property as a result of sudden foreclosure.