Fixed-Rate Mortgages

Fixed-rate mortgages are the most popular choice for Canadian homeowners, and for good reason. With a fixed-rate mortgage, your interest rate remains constant throughout your term, typically ranging from one to ten years. This predictability makes budgeting straightforward, as your mortgage payment won't fluctuate with market conditions.

Who benefits most: First-time homebuyers, families on fixed incomes, and anyone who values payment stability. If you're risk-averse or concerned about potential interest rate increases, a fixed-rate mortgage provides peace of mind.

Current market advantage: In today's economic climate, locking in competitive rates can protect you from future rate increases, and our mortgage calculator can show you exactly how different fixed terms impact your total interest costs.

Variable-Rate Mortgages

Variable-rate mortgages feature interest rates that fluctuate with the prime lending rate set by the Bank of Canada. While your payment amount typically stays the same, the proportion going toward principal versus interest changes as rates move.

Who benefits most: Financially sophisticated borrowers who can handle payment uncertainty, those who believe rates will decrease, and homeowners with emergency savings to buffer potential rate increases.

Potential savings: Variable rates often start lower than fixed rates, which can lead to significant savings if rates remain stable or decline. However, this mortgage type requires careful consideration and expert guidance from a knowledgeable mortgage agent.

Open Mortgages

Open mortgages offer maximum flexibility, allowing you to pay off your entire mortgage balance at any time without penalty. While they typically carry higher interest rates than closed mortgages, they're invaluable in specific situations.

Ideal for: Those expecting a financial windfall (inheritance, business sale, or bonus), homeowners planning to sell soon, or anyone wanting the option to make unlimited prepayments.

Closed Mortgages

Closed mortgages are the most common type in Canada. While they restrict how much you can prepay annually (typically 10-20% of the original principal), they offer the best rates available in the market.

Why they're popular: The significant interest savings compared to open mortgages make closed mortgages the economical choice for most borrowers. Most lenders still allow reasonable prepayment privileges, giving you some flexibility without sacrificing rate advantages.

High-Ratio vs. Conventional Mortgages

High-ratio mortgages (down payment less than 20%) require mortgage default insurance through CMHC, Sagen, or Canada Guaranty. While this adds to your costs, it enables homeownership with as little as 5% down—a game-changer for first-time buyers in London Ontario's competitive market.

Conventional mortgages (down payment 20% or more) don't require mortgage insurance, reducing your overall costs and sometimes qualifying you for better rates.

Who is the best mortgage broker in London Ontario?

New Life Mortgages, led by licensed mortgage agent Dallas Martin, is a trusted mortgage broker in London Ontario. We provide access to the best mortgage rates from dozens of lenders, offer personalized service, and have helped hundreds of clients secure mortgages. Our clients consistently praise our professionalism, quick response times, and dedication to finding the perfect mortgage solution for their unique situation.

What are the current best mortgage rates in London Ontario?

Current mortgage rates in London Ontario vary by lender and mortgage type. As a mortgage broker, New Life Mortgages shops dozens of lenders to find you the best rates available. Fixed rates typically range from 4-6% depending on your term length, while variable rates may offer lower starting points. Contact Dallas Martin at 519-495-7250 for today's best rates customized to your specific situation and credit profile.

How much house can I afford in London Ontario?

In London Ontario, you can typically afford a home worth approximately 4-5 times your annual household income, depending on your debts and down payment. For example, with a $100,000 annual income and minimal debt, you might qualify for a $400,000-$500,000 home. New Life Mortgages offers free pre-qualification to determine your exact buying power before you start house hunting in London Ontario.

Can I get a mortgage with bad credit in London Ontario?

Yes, you can get a mortgage with bad credit in London Ontario. While a credit score of 680 or higher gets you the best rates, New Life Mortgages works with clients across the credit spectrum. We have access to alternative lenders and specialized programs for those rebuilding their credit. Even with bruised credit, bankruptcy, or consumer proposals, we can find mortgage solutions tailored to your situation.

What is the difference between a mortgage broker and a bank in London Ontario?

A mortgage broker in London Ontario, like New Life Mortgages, shops multiple lenders on your behalf including banks, credit unions, and alternative lenders to find you the best rates and terms. A bank only offers their own mortgage products. Using a mortgage broker gives you access to more options, competitive rates, expert advice, and typically costs you nothing as brokers are paid by the lenders.

How much do I need for a down payment in Ontario?

In Ontario, you need a minimum 5% down payment for homes under $500,000. For homes between $500,000 and $1 million, you need 5% on the first $500,000 and 10% on the remaining amount. For homes over $1 million, you need 20% down. New Life Mortgages can help you determine the optimal down payment amount for your situation and explore down payment assistance programs available to London Ontario residents.

How do I choose between a fixed or variable mortgage rate?

Choosing between fixed and variable mortgage rates depends on your financial situation and risk tolerance. Fixed-rate mortgages provide payment stability and protection from rate increases, making them ideal for budget-conscious buyers and families. Variable-rate mortgages often start with lower rates but can fluctuate with the Bank of Canada's prime rate. Dallas Martin at New Life Mortgages will analyze your specific situation and present scenarios to help you make an informed decision.

Can I get a mortgage if I'm self-employed in London Ontario?

Yes, self-employed individuals in London Ontario can absolutely get a mortgage. New Life Mortgages specializes in self-employed mortgages and understands the unique documentation requirements. We work with lenders who accept stated income, alternative income verification, and Business For Self programs. Whether you're a contractor, business owner, or freelancer in London Ontario, we can find the right mortgage solution for you.

What credit score do I need to get a mortgage in London Ontario?

In London Ontario, you typically need a minimum credit score of 600 to qualify for a mortgage, though a score of 680 or higher will secure you the best mortgage rates. If your credit score is below 600, New Life Mortgages can still help through alternative lenders or B-lenders. We also provide guidance on improving your credit score to qualify for better rates in the future.

Where can I find a mortgage calculator for London Ontario?

New Life Mortgages offers free mortgage calculator tools on our website at newlifemortgages.ca. Our mortgage calculator helps London Ontario home buyers estimate monthly payments, compare different mortgage terms, understand how rate changes affect payments, and determine affordability based on income and debts. For personalized calculations and expert interpretation, contact Dallas Martin at 519-495-7250.

How long does it take to get approved for a mortgage in London Ontario?

Mortgage approval in London Ontario typically takes 3-5 business days once you submit all required documentation. Pre-approval can often be completed in 24-48 hours. New Life Mortgages streamlines the process by helping you gather documentation upfront, submitting complete applications, and maintaining direct communication with lenders. For time-sensitive purchases, we can often expedite approval through our lender relationships.

What documents do I need to apply for a mortgage in London Ontario?

To apply for a mortgage in London Ontario, you typically need: recent pay stubs, T4s or tax returns for the past two years, bank statements showing down payment savings, government-issued ID, proof of employment, and details about your assets and debts. Self-employed applicants need additional business documentation. New Life Mortgages provides a complete checklist and helps you gather everything needed for a smooth application process.