Mortgage Types: The Breakdown

When searching for a home, choosing the right mortgage is a big part of the equation. Your mortgage broker can always walk you through your options, but really understanding what’s available to you can make things a little simpler. Here’s an easy definition of the mortgage types out there. Conventional and High-Ratio: A mortgage loan with less than 20% for a down payment, is considered high-ratio, and must be insured. A conventional mortgage loan has a down payment of 20% or more. Open and closed: Open mortgages allow flexibility to pay as much as you’d like at any time (ideal if you’re expecting large amount(s)…