Of all the financial decisions that go into buying a home in Durham, Canada, choosing a mortgage may be the most important. Understanding the different types of mortgages available can help you make an informed decision that aligns with your financial goals. Here are some of the most common types of mortgages available in Durham.

Fixed-Rate Mortgage: A fixed-rate mortgage is one of the most popular options for homebuyers in Durham. With this type of mortgage, your interest rate remains the same for the life of the loan, which means that your monthly mortgage payment stays the same as well.

Adjustable-Rate Mortgage (ARM): An ARM is another type of mortgage available in Durham. With this type of mortgage, your interest rate will fluctuate based on market conditions. This means that your monthly payment may increase or decrease over time.

Conventional Mortgage: A conventional mortgage is a mortgage that is not insured or guaranteed by the government. With this type of mortgage, you will typically need a down payment of at least 20%.

FHA Loan: An FHA loan is a mortgage that is insured by the Federal Housing Administration. This type of mortgage is designed to help first-time homebuyers who may not have the funds for a large down payment or who have less-than-perfect credit.

VA Loan: A VA loan is a mortgage that is available to eligible veterans and their spouses. This type of loan is guaranteed by the Department of Veterans Affairs and typically offers lower interest rates and more lenient credit requirements.

Understanding the different types of mortgages available in Durham can help you make an informed decision that aligns with your financial goals. By considering factors like your budget, credit score, and long-term financial goals, you can choose the mortgage that's right for you and your family. Be sure to consult with a trusted mortgage advisor to help guide you through the process.


Colleen Steffl

Colleen started her sales career with an International News Agency in Europe selling Advertising. She has continued to rise early, dig deep, and built a solid sales career with 15 years dedicated to real estate sales. She has worked in all areas of real estate sales: buyers, sellers, investors, commercial, land development, and new construction.