A mortgage is a loan used to purchase or refinance real estate, where the property itself acts as security. You repay the loan over time through regular payments that include both principal and interest.

Common mortgage types include fixed-rate mortgages, where your interest rate remains the same for the entire term, and variable-rate mortgages, where the interest rate may fluctuate. Depending on the mortgage type selected, the mortgage may be referred to as open, which allows prepayments without penalties, or closed, which may have limits on prepayments.

Mortgage payments can be scheduled weekly, bi-weekly, semi-monthly, or monthly to fit your budget and cash flow preferences.

Yes, mortgages offer prepayment options that allow you to pay down your balance faster. Open mortgages allow unlimited extra payments towards the mortgage balance without penalty, while closed mortgages allow you to prepay up to 20% of the original balance each year without penalty.

A mortgage pre-approval provides an estimate of how much you may be able to borrow based on your financial situation. It helps you shop for a home with confidence and may allow you to secure an interest rate for a period of time.

In Canada, the minimum down payment is typically 5% of the purchase price for homes up to $500,000. For homes with a purchase price above $500,000, you’ll need a minimum of 5% on the first $500,000 and 10% on the remaining amount up to $1.5 million. Homes with a purchase price above $1.5 million require a down payment of 20% of the purchase price.

Mortgage default insurance is required in Canada if your down payment is less than 20% of the purchase price. This insurance protects the lender and allows buyers to qualify for home ownership with a smaller down payment.

Mortgage default insurance is a type of insurance that protects the lender against loss if a borrower defaults on their mortgage responsibilities. The cost is typically added to your mortgage balance and repaid over the amortization period.

The total time it takes to pay off your mortgage is referred to as the amortization period. This is typically up to 25 years, though some buyers may qualify for amortization periods of up to 30 years in certain situations.

Yes, Access Credit Unions’ Purchase Plus Improvements mortgage option allows you to include renovation costs at the time of your home purchase. You will need to provide quotes, and funds are typically released once the work is completed. If you already own your home, you may be able to refinance your mortgage to include renovation costs and maintain a single monthly payment.

Talk to a lender at Access Credit Union to see what options are available to you!

A construction mortgage is a loan that provides funds to build a new home. Funding is provided in stages as your home is built rather than in a lump sum like a standard mortgage for a home purchase. During construction, you usually make interest-only payments, and once the home is complete, regular mortgage payments begin.

Yes, programs such as CMHC’s Eco Plus and Sagen’s Energy Efficient Housing Program may offer a partial refund of your mortgage insurance premium—up to 25%—if your home meets energy-efficiency standards, work is completed within 24 months of the closing date of the mortgage, and all documentation is within the last 5 years.

Speak to an Access Credit Union lender to see what options you have for making your home energy efficient.

Lenders consider your income, credit history, debt levels, and down payment when determining your eligibility and how much you can borrow. The value of the property must support the amount of the loan being requested to obtain final approval.

Credit unions offer personalized service, flexible payment options, and expert guidance to help you make informed decisions throughout your home buying journey.