The Den

Money Matters: Making the Right Mortgage Decision

Buying a home from Prestige Homes is easy; but understanding how to choose the right mortgage can be a bit tougher! So here are a few basic tips to consider when choosing a mortgage:


Blog_Pic_Money_Matters_Mortgage_Decision_01.jpgFixed or Variable Rate Mortgage
With a fixed-rate mortgage, your interest rate won't change so you’ll always know exactly how much your payments will be and how much you will have paid on your principal at the end of each term. With a variable-rate mortgage, your rate fluctuates with the bank’s prime lending rate each month. Historically, variable-rate mortgages cost less than fixed-rate mortgages when interest rates are fairly stable and, if interest rates drop, more of your payment is applied to the principal which means you’ll pay it off even faster!


Short or Long Term Mortgage
The term is the length of the current mortgage agreement. A mortgage typically has a term of six months to 10 years. Usually, the shorter the term, the lower the interest rate. A short-term mortgage is usually for two years or less. A long-term mortgage is generally for three years or more. Short-term mortgages are appropriate for buyers who believe interest rates will drop at renewal time. Long-term mortgages are suitable when current rates are reasonable and borrowers want the security of budgeting for the future. The key to choosing between short and long terms is to feel comfortable with your mortgage payments. After a term expires, the balance of the principal owing on the mortgage can be repaid, or a new mortgage agreement can be established at the then-current interest rates.


Open or Closed Mortgage
Open mortgages can be paid off at any time without penalty and are usually negotiated for very short terms. They are suited to homeowners who are planning to sell in the near future or those who want the flexibility to make large, lump-sum payments before maturity. Closed mortgages are commitments for specific terms. If you want to pay off the mortgage balance, you will need to wait until the maturity date or pay a penalty.


If you have additional mortgage questions, most of our local retail centres have great relationships with both banks and mortgage brokers and would be happy to connect you with them to find the right solution for you.  Click to find your local Prestige Homes retailer and get started today.

Subscribe to Email Updates


"Our home is absolutely fabulous, we are so pleased with the finishing touches and the detail. The Prestige staff were wonderful to deal with, they looked after us every step of the way. We would build with Prestige again - in a heart beat."
"We are absolutely thrilled with our Prestige Home. From the initial visit, to interior and exterior design, to completion, the staff were very hands-on and extremely helpful. Delivery of our new home was on schedule and on budget and any concerns and questions we had after we moved in were handled quickly and professionally."
"The easy part was choosing Prestige! The challenge was finding the home that was meant to be ours. Decision making can prove to be stressful, but the Prestige staff helped us immensely. They answered all of our questions right away, they helped us figure out the house plan and they delivered on time. Because of this, we were able to enjoy our new home just in time for Christmas. We love our home. We see that it is quality made, the on site workers were amazing and very friendly. We feel confident recommending them to our family and friends."
"Our new cottage is absolutely fantastic. We were impressed with the professionalism and efficiency of the sales staff and the site construction crew. Our dream is now a reality."
"I was amazed at the finished product after the changes. It was just as elegant as the display Birmingham, if not more so, especially the front of the house. I thank the site team for their help and foresight. The workmanship in the home is very good. We are very happy with our new home. Anyone who visits thinks it is beautiful. Thank you for all of your efforts in helping make our dreams come true."
"I gotta say, the Prestige crew did a fantastic job, the home looks great. They deserve a pat on the was a good experience and I appreciate all the hard work."
"Great experience - really happy with everything and everybody in the Saint John office. I love every inch of my home - I'm so happy. Most satisfied customer ever!!"
"When we decided to build, we were most worried about the hectic lives we both lead and having enough time to supervise the process of our new home. The staff at Stone's Prestige Homes made the process of building our dream home easy and a lot less stressful. The staff were courteous, knowledgeable, friendly and great to deal with. We were always kept up to date on the process of our new home and we had no worries about chasing down contractors and making sure our home was on time. We actually enjoyed the building process and got to sit back while everything was being taken care for us. We will definitely recommend Stone's Prestige Homes for anyone looking for a new home."
"We were very pleased with the service we received while buying and designing our new mini-home. Stones was always available to answer our concerns and questions. The quality of the home was also the best we've seen. We are very happy with our new home and recommend Prestige homes to anyone looking for a new home."
"I love my new Prestige Home.Every staff member went out of their way to make sure the whole process went smoothly. I felt like family; I did not feel pressured, they made me feel very comfortable.I have told many people that are thinking about a new home how wonderful and positive my whole experience with Stones Prestige Homes was.I am very proud to say I own a Prestige Home."
More Testimonials