Types of Mortgages

Verico Synergy Mortgage Inc. specializes in residential mortgages and is centrally located at #630-1665 west Broadway (1 ½ blocks west of Granville St.) and only 5 minutes from downtown Vancouver, BC. Our brokers have over 13 years of specialized experience and have funded mortgages in excess of 375 million dollars.

We are a member of the VERICO broker’s network which is a unique coalition of Canada’s top mortgage brokers who have established alliances with over 30 reputable lending financial institutions. Over the past year VERICO brokers collectively funded mortgages across Canada totaling over 7 billion dollars.

Fixed Rate Mortgages

Suitable for:

• Rate‐sensitive borrowers
• First‐time buyers
• People who worry and don’t want the uncertainty of rate fluctuations
• Growing Families
• People on tight budgets
• People who like predictable expenses

If you are particularly rate sensitive, the fixed mortgage provides rate stability at a low price. Although 5 year fixed has been very popular, many borrowers choose to secure the rate for up to 10 years, and never worry about your payments going up during that term. Today’s fixed rates are highly competitive and historically speaking they are very low.

Fixed rate mortgages are very easy to understand and you have the advantage of a guaranteed rate up to 120 days prior to completion, offering you upfront protection from rising rates. In the event the fixed rates go down prior to completion, you would get the new lower rate. Most lenders offer generous pre‐payment options on their fixed rate mortgage products.

Floating Mortgages (Open or Closed)

Floating Mortgage (fully open) is Suitable For:

• People with moderate risk tolerance
• People who are comfortable with rate fluctuations
• People with strong stable cash flow that don’t mind paying slightly higher rate in exchange for maximum flexibility
• People who want to keep their options open
• Sophisticated Borrowers
• People who want flexibility to make unlimited lump sum payments or pay off the mortgage at any time without penalty

If you require total freedom and flexibility, a fully open mortgage gives you unlimited ability to increase payments, make lump sum payments, pay the mortgage off or convert it to a fixed term at any time without fee or penalty. With an Open floating mortgage your rate will fluctuate up and down in relation to the bank prime rate.

Floating Mortgage (Closed) is Suitable For:

• People with moderate risk tolerance
• People who are comfortable with rate fluctuations
• People who are not on a tight budget
• People who qualify for a larger mortgage than they need
• High net worth borrowers
• People who want a more predictable penalty if they pay the mortgage off in full prior to completion.
• People who want to float at lower than current fixed rates, and take advantage of current teaser rates.
• People who want to lock into fixed rate at a later date.

Home Equity Line of Credit (Heloc)

Suitable For:

• Sophisticated borrowers with moderate to high risk tolerance
• High equity homeowners
• Small business entrepreneurs
• People who want to maintain a high cash flow
• People who want to cover home purchase and future financial needs
• People who want a fully open product and want easy access to funds

Combination Mortgage

A very popular option today is the combination mortgage which combines fixed mortgage, floating mortgage and /or line of credit into one mortgage offering exceptional flexibility and diversity. Some lenders also allow a VISA card, and overdraft protection into this one single comprehensive borrowing program.

This mortgage allows you to make future advances on your equity without rewriting the mortgage so you will not incur additional legal fees. You may continually draw out equity, for automobile purchases, investments, etc. If your mortgage is 75% or less you may also borrow lines of credit with interest only payments etc. The rates are generally very low as the loan is secured by your real estate.