Mortgage Intelligence - Waterloo Region

How your lender sets your interest rate
Lenders set the interest rate for your mortgage. They consider factors to help them determine your cost.

These factors can include:

the length of your mortgage term
their current prime and posted interest rate
if you qualify for a discounted interest rate
the type of interest you choose (fixed, variable or a combination)
your credit history
if you’re self-employed
Lenders typically offer higher interest rates when the term length is longer. It’s not always the case.

APR (Annual Percentage Rate) includes the interest rate plus any extra fees (like lender fees, mortgage insurance, etc.) spread out over the year. So it's the true cost of borrowing, shown as a percentage.
Example:
Let’s say you borrow $100,000:
⦁ Interest rate: 5% – you pay $5,000/year just for the loan.
⦁ APR: 5.5% – because it includes things like lender fees, now your actual yearly cost is $5,500.
So, when you're comparing mortgage offers, APR gives a better apples-to-apples view of what you're really paying.

-Mortgage term-
The mortgage term is the time your mortgage contract is in effect. Terms may range from a few months to 5 years or more.

At the end of each term, you’ll need to renew your mortgage. You’ll likely need multiple terms to repay your mortgage. If you pay the balance at the end of your term, you don’t need to renew your mortgage.

🏡 Ready to embark on your mortgage journey? At MyMortgages.ca, we believe that securing your dream home should be a stress-free adventure! Whether you're buying, refinancing, or just curious about your options, we're here to make it enjoyable. Let's turn your mortgage into a story worth telling!