Insured, the rate is often lower but the premium is added and amortization caps at 25 years. Conventional needs 20% in cash. The math, on equal assumptions.
A fair comparison uses one amount, one term and one amortization. Change any of them and the cheaper option can switch places. That trick is behind most misleading comparisons you will see.
What each choice costs you in flexibility
The cheaper option is often the more rigid one. The flexible one tends to cost more. It comes down to how likely you are to move, prepay or break the term early.
Count everything you will pay
Go back to what actually leaves your account: the monthly payment, the fees, the exit penalty and the conditions that last after signing. The rate alone decides very little.
Documents to gather
What the lender will ask for.
Goal of the file
Income and paperwork
Debts and credit
Property or security
Timeline
Which lenders
Frequently asked
Which documents should I gather?+
Your last two notices of assessment, recent pay stubs, an employment letter, three months of bank statements and proof of your down payment. Have them before the offer and a five-day financing condition is workable. Gather them afterwards and you add weeks.
Current rates
Today’s rates, with the fine print.
These rates are indicative. Yours depends on your file, the type of mortgage (insured or not) and the lender. And look at the penalty too, it matters as much as the number.
Buying, renewing, refinancing, or something a bit out of the ordinary: tell us where you’re at, even if it’s still fuzzy. Mathieu gets back to you with next steps and the documents to pull together.
