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You’ve been checking real estate listings online and found a number of homes you can imagine yourself living in for a long period of time. Now, you’re looking up potential lenders and want to know how Merix Financial’s best mortgage rates compare to the competition.
Before you begin, it’s time for a quick primer about mortgages. Let’s start with the amortization period. This is the amount of time it will take to pay off the mortgage completely. A typical amortization period is 25 years, although shorter or longer periods may be available.
There’s also the term. This is the length of your mortgage contract with a particular lender. When the term ends, you have to renew your mortgage until the full balance is paid off. You can renew your mortgage with the same lender, or move to a different one if you find a better rate. A typical term is five years, although it can range from six months to 10 years.
Then, there’s the mortgage — that’s just jargon for a home loan. Like all loans, you’ll pay a percentage of interest on the amount you borrow. The most common types of mortgage interest rates in Canada are fixed and variable. A fixed rate mortgage has the same interest rate for the life of the term. On the other hand, the rate on a variable rate mortgage can fluctuate over the term because it’s influenced by the lender’s prime rate.
LowestRates.ca makes it easy to compare Merix Financial’s mortgage loan rates with rates from 75+ Canadian banks and brokers. To compare rates now, choose whether you’re buying, renewing or refinancing and click the “Get Started” button above. On this page, we’ll answer all your questions about Merix Financial mortgage rates in Canada.
All financial institutions in Canada have what’s called a prime rate or prime lending rate. They use this to determine the interest rate they charge when lending money to customers for variable rate credit products, such as personal and business loans, car loans and lines of credit.
Merix Financial’s variable mortgage rates (as well as other lenders’ variable rates) are also influenced by the prime rate. Canada’s big banks and other lending institutions like Merix Financial tend to have the same or similar prime lending rates, but some may have a different prime rate for mortgages.
Variable rate mortgages may change because the prime rate is influenced by the target for the overnight rate set by the Bank of Canada. The central bank tends to increase rates when the economy is doing well and to prevent it from overheating. And it lowers rates when the economy is weak and to prompt consumers and businesses to spend.
Mortgage rates are always changing — that’s why it pays off to compare using LowestRates.ca. To find the best rate available, see how Merix Financial’s current mortgage rates compare with other lenders.
Lenders such as Merix Financial will publish their rates, terms, and what kind of mortgages they offer on their website. These types of rates are called posted mortgage rates, but these rates might not be the best rate you can get.
There are various amounts of time that the interest rate will last, which is called the term. The most common term is five years. Most large lenders offer terms of between one and five years.
The rate on a fixed rate mortgage doesn’t change during the term nor do the payments. This is what most borrowers choose, because they like knowing that the interest rate won’t change during the entire term.
The rate on a variable rate may change if the Bank of Canada decides to raise or lower rates. Merix Financial’s prime rate and the rates on its variable rate mortgages are influenced by the central bank.
Posted rates are an indication of what’s available on the market, but you might qualify for a better rate based on your individual financial profile. That’s why it pays off to do a comparison of Merix Financial’s mortgage rates with other lenders on LowestRates.ca.
With a fixed rate mortgage, your interest rate remains the same for the life of the term. That means your payments also won’t change and the amount that goes towards paying your principal (the outstanding balance of your mortgage) will gradually increase. At the same time, the amount that goes towards paying interest will gradually decrease.
A fixed rate mortgage will typically have a rate that’s higher than a variable rate mortgage. But with that higher rate, you get protection in the event that rates rise. That’s the main advantage of having a fixed rate. Many Canadians choose a fixed rate because they want predictability. However, a fixed rate can have its downsides in the event that rates fall.
Fixed rate mortgages are ideal for those who want certainty, who don’t have to worry if rates rise, and who expect rates to rise. Merix Financial’s fixed mortgage rates will vary based on the term you pick.
If you’re looking for Merix Financial mortgage interest rates, you should check LowestRates.ca for the most current rates from Canada’s top lenders.
The rate on a variable rate mortgage can change if the Bank of Canada lowers or raises rates. The current rate is based on Merix Financial’s prime rate. Lenders will charge the prime rate with a discount or a premium. As an example, a variable rate mortgage with a discount may be “prime minus 0.25%,” while one with a premium may be “prime plus 0.25%.”
The Bank of Canada usually makes rate announcements eight times every year, but it doesn’t always raise or lower rates each time. The central bank may also make emergency rate cuts — something it’s done during periods of economic uncertainty, such as recessions and the COVID-19 pandemic.
There are advantages to having a variable rate mortgage. First, the rate tends to be lower than a fixed rate mortgage, which means the payments will be lower. Second, if rates fall, you’ll be able to pay off your mortgage faster. Third, you can switch a variable rate mortgage to a fixed rate mortgage. And finally, the penalty for breaking a variable rate mortgage is much less than a fixed rate mortgage.
But there are also disadvantages. The biggest is interest rate risk. When rates rise, more of your payment will go towards paying down interest instead of your principal. And you won’t have the certainty that comes with having a fixed rate mortgage. You may end up paying more interest over the term with a variable rate mortgage than with a fixed rate mortgage if rates rise a few times.
Merix Financial is an alternative lender and has options for borrowers who may not qualify for a mortgage from a traditional lender. For example, it offers mortgages for people who are self-employed, have non-traditional incomes, or don’t have a high credit score.
Merix also offers family plan mortgages (which allows borrowers to help family members that don’t meet the income requirements to buy a home), interest-only mortgages, new to Canada mortgages for immigrants, purchase plus improvements mortgages (which allows you to borrow for renovation costs and add it to the mortgage), rental property mortgages (which allows you to invest in multi-unit properties with two to four units), and many others.
To see what type of rates you may qualify for, compare Merix Financial’s mortgage rates online today on LowestRates.ca.
In order to be approved for a mortgage from Merix Financial, there are a few things you need to provide first. This is the information what most lenders ask for:
A lender will also review your credit score and credit history. With this information, it will determine your interest rate and how much you’ll be able to borrow.
Before you start your home search, getting a pre-approval from Merix Financial to help you determine how much you can actually afford to spend. That will save you from being disappointed if you find a home you love and later find out it’s out of your price range.
Having a pre-approval means the mortgage rate you’re quoted will stay the same for a certain amount of time. That’s helpful since it’s not easy to find a home you love in a couple of days. Also, if mortgage rates may go up your rate will stay the same.
Keep in mind that a pre-approval is a maximum amount that a lender will provide you, but it’s not a guarantee you’ll be approved for a mortgage.
The amount you can afford will depend upon a number of factors. According to guidelines from the Canada Mortgage and Housing Corporation (CMHC), your gross debt service ratio (the combined cost of your mortgage payments, heating bill, and property taxes divided by your gross salary) to be 35% or lower. Your total debt service ratio (the combined cost of your mortgage payments, heating bills, property taxes, and other debt obligations divided by your gross salary) should be 42% or less.
If your gross debt service ratio and total debt service ratio are a little bit higher, that doesn’t mean you won’t qualify for a mortgage. Merix Financial may offer some flexibility in terms of what it offers to you. You can also use the company’s mortgage qualifier calculator to get an idea of what you can afford.
This will be dependent on what’s written in the mortgage contract and it will vary if you have a variable or fixed rate mortgage. In most cases, any terms and conditions will be related to your payments and prepayments.
Merix allows you to choose either weekly, accelerated weekly, biweekly, accelerated biweekly, semi-monthly, or monthly payments. The company also allows you to change your payment frequency.
There may be penalties if you make additional payments on top of your regular mortgage payment. Some lenders will allow you to pay down only a certain percentage of your mortgage balance every year. These will be outlined in the terms and conditions section of your mortgage contract.
You can renew your mortgage with Merix Financial before your term is about to end or you can shop around for a different lender. You’re under no obligation to stick with any lender when the term is over.
A renewal can be discussed up to 90 days before the term ends and the rate that Merix offers will be held until the end of the existing term.
However, what’s offered might not be the best rate available to you even though you’ve been a loyal customer. That’s why you should compare Merix Financial’s mortgage rates with other lenders on LowestRates.ca.
The time it takes to pay off your mortgage in full will be noted in your mortgage contract. Your mortgage is for a certain period of time, which is called the amortization period. When you choose a long amortization period, you pay more interest but have smaller payments. When you decide to have a shorter amortization period, you pay less interest but have larger payments.
The most typical amortization period is 25 years although it’s sometimes possible to get a mortgage with a 30-year amortization. If you want to reduce the amount of interest you pay, shorter amortizations (15 or 20 years, for example) are also available.
There are many ways to pay off your mortgage faster. The first option is to use weekly or biweekly payments instead of monthly payments. This will reduce the amount of interest you pay over time. Another option is to switch to accelerated weekly or biweekly payments. In both cases, you pay a larger amount compared to regular weekly or biweekly payments.
If you want to make a large dent in your mortgage, Merix allows you to prepay up to 20% of the original mortgage balance every year on the anniversary of the loan. You can also increase payments by up to 20% of the original mortgage balance on the loan anniversary.
One other option is to choose a shorter amortization period, such as 15 or 20 years instead of 25 years.
The cost for breaking a mortgage will depend upon whether you have a variable or a fixed rate mortgage. Merix Financial doesn’t provide details of how much it costs for breaking a mortgage, but the way prepayment penalties are determined are often similar among most financial institutions.
On a variable rate mortgage, the penalty is three months’ interest on the amount that’s still owed. On a fixed rate mortgage, the lender will use the three months’ interest charge or the interest rate differential (IRD) calculation, whichever is higher.
To find out the cost of breaking your mortgage, it’s best to discuss the details of your mortgage contract directly with a broker or lender.
LowestRates.ca works with 75+ banks and brokers across the country to bring you the best rates. We work with our partners to obtain their best deals and offers, and then we let them compete for your business. All you have to do is answer a few questions, and in minutes you’ll be provided with today’s mortgage rates. There’s no obligation, but you can choose to speak with our broker partner to secure your best rate and see if you're eligible for more savings.
Yes, it’s safe — you no longer need to visit a bank branch or mortgage broker’s office in person to apply for a mortgage. It’s becoming increasingly common for Canadians to apply for mortgages online. LowestRates.ca only works with reputable, trustworthy financial institutions. Your credit score won’t be affected and your information is secure. We don’t share your information with anyone unless you want to connect with a mortgage broker. We take care of the heavy lifting by comparing the market for you and can connect you with the best mortgage lenders across the country.
We have a strong selection of lenders on LowestRates.ca, including the big banks and many independent providers, and we’re adding more lenders all the time. This ensures we’re always delivering you a competitive rate. Even if you’re not ready to commit to anything, you can use our site as a starting point for research (it’s totally free, and you’re under no obligation).
The better informed you are, the more likely you'll negotiate a better deal for yourself. And, really, that’s what we care about the most.
This article has been updated from a previous version.*
When it comes to shopping for mortgages, most homebuyers in Canada tend to take a conservative approach.