What's the difference between a fixed rate and variable rate mortgage?
A fixed-rate mortgage gives you a predictable mortgage payment every month. The interest rate on your mortgage will stay the same for the duration of your mortgage term.
With a variable rate, the interest rate on your mortgage will fluctuate as bank prime rates fluctuate. If prime rates increase, so will your borrowing cost.
What's the difference between an open term and closed term mortgage?
With an open term mortgage, you get unlimited flexibility to pay off as much of your mortgage as you'd like. The added flexibility of an open term mortgage does, however, come with higher interest rates.
A closed term mortgage has lower interest rates than open term mortgages, but they also have restrictions on your ability to pay off your mortgage early.
What are prepayment privileges?
If you want to pay off your mortgage sooner and save on interest expenses along the way, you can do so by making prepayments on your mortgage.
Prepayment privileges are the limits you receive to make extra payments towards paying down your mortgage. Paying over your prepayment privileges will result in you having to pay a penalty charge.
Simplii Financial fixed-rate mortgages
Simplii Financial offers fixed-rate mortgages in 2, 3, 4, 5, 7, and 10-year terms. They also offer cashback options on 5, 7, and 10-year mortgages as well.
If you want a shorter-term mortgage, with the option to convert to a longer-term, Simplii Financial offers a 6 month and 12-month convertible fixed-rate mortgage.
At the moment, all of Simplii Financial's mortgages have closed terms. They do, nevertheless, make up for the lack of open term mortgages with generous prepayment privileges.
Simplii Financial variable rate mortgage
If you want a lower interest rate and can take on some financial uncertainty, Simplii Financial offers a 5-year variable rate mortgage. The interest rate on the variable rate mortgage fluctuates, along with CIBC's prime lending rate. If CIBC's prime rates increase, so will your borrowing costs.
Simplii Financial mortgage prepayments
Simplii Financial offers flexible prepayment privileges that will allow you to pay down your mortgage quicker and save on interest. With Simplii Financial, you can make lump-sum payments of up to 20% of your original mortgage principal every year. You can also increase your monthly mortgage payments by up to 25% once annually.
Apply for a Simplii Financial mortgage
If you're ready to apply for a mortgage with Simplii Financial or want to get pre-approved for a mortgage, you can do so online by completing an online application. After you've completed an application, a Simplii Financial banking representative will call you to take your application or pre-approval request forward.
If you'd prefer to apply over the phone, you can call Simplii Financial to get in touch with one of their mortgage specialists. You can also contact them if you have any questions or require further clarification about their mortgages.
About Simplii Financial
Founded in 2017, Simplii Financial is a wholly-owned digital banking brand under CIBC. Being backed by CIBC, which is one of Canada's largest banks, you can utilize CIBC's networks of ATMs to access your Simplii Financial account.
Forbes named Simplii Financial as one of the best banks available in Canada. There are no fees or minimum balance requirements on many of their accounts, making Simplii Financial an excellent banking option for many Canadians.