KANETIX gives you access to our large collection of mortgage products with its one-of-a-kind mortgage shopping experience. For the first time in Canada, residents of Prince Edward Island are able to compare and secure the best mortgage rates online! What's more we provide a rate guarantee certificate with all of the mortgage details. Acquiring a mortgage has never been easier!
Give our user-friendly mortgage payment calculator a try to understand the different factors that impact your payments. Test out different variables such as the mortgage amount, payment frequency, amortization and the interest rate to understand how these variables affect your repayment schedule. Make your mortgage shopping experience informing and fun.
Prince Edward Island is Canada's smallest province that is considered to be a peaceful getaway . Purchasing a home in P.E.I. usually requires a mortgage that can be financed through a chartered bank, credit union or trust company. The mortgage rate is the interest that you are required to pay on the loan. Your mortgage payment is split into paying off the interest and the principal amount.
Finding the best mortgage loan in P.E.I. requires you to shop around. Much like buying a car; you have better odds of finding a bargain if you educate yourself about the market first. Fortunately, KANETIX does all the comparison-shopping for you, providing you with the best mortgage rates from a variety of different lenders and brokers!
Here are some tips to guide you in the process of finding your ideal rate:
A fixed rate mortgage has a set rate and will not change throughout the duration of your mortgage term. A variable rate mortgage has a rate that can change with the prime-lending rate, set by the Bank of Canada. Variable rate mortgages could have lower rates relative to fixed rate mortgages, but run the risk of a rate increase in over the term of the mortgage.
Choosing between an open or closed mortgage will depend on your financial situation, cash flow and repayment plans. Open mortgages allow you to contribute towards the principal at your discretion. A closed mortgage is more limited as it has pre-payment limitations.
If your down payment/home equity is greater than 20 per cent of the property value than you would qualify for a conventional mortgage; this applies to a first mortgage, second mortgage, renewal or a refinance. Alternatively, if your down payment is lower than 20% of the home value, you would qualify for a high ratio mortgage, requiring you to purchase mortgage insurance. The cost of this insurance is usually 1.75 - 2.75 per cent of the mortgage amount.
It is important to be informed about the different features of the available mortgage products. Focusing solely on the lowest rate has potential flaws. Consider the following characteristics of various mortgages when shopping around:
Here are some important factors that can affect your mortgage rate. It is important for you to be honest and transparent on your mortgage application.
Sources: Stats Canada.
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