Edmonton Real Estate, Choosing A Mortgage that Works For You

By Mark Walker · Monday, August 9, 2010

When looking to buy Edmonton real estate it is important to choose a mortgage that works best for you.  Choosing which type of mortgage you want to go with can appear to be a daunting decision, but it doesn’t have to be.  There are a few variables to consider in a mortgage, first being the length of a loan, second being the type of loan.

The most common length of a mortgage being 25 years to 35 years.  The length often affects the monthly payment amount.  The benefit for going with a short length would be paying off a mortgage more quickly.  A 35 year loan would have lower monthly payments and could be more beneficial if you don’t plan on staying in your Edmonton home for more than five years.

There are two main types of loans, fixed rate and variable rate.  A fixed rate loan locks you in at a set interest rate for the length of your term, beneficial for those who plan on staying in their home for a while and for times when interest rates look as though they could be heading up. A borrower will have the same monthly payments for the term they choose.

With a variable rate loan the interest rate fluctuates with the prime rate.  The monthly payment can stay the same with more going toward the principal when rates go down and more going toward interest when the rates go up.  The monthly payments can increase if the prime rate increases enough.

When looking to buy Edmonton real estate it is a good idea to sit down with a lender and examine which type of loan is best for you.  Click here to read a recent article from the Edmonton Sun regarding mortgage types.

Contact me for an informed education on Edmonton real estate.  Whether you want to buy or sell I can help get the deal done.  I have access to all available Edmonton real estate listings.

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