Examples of everyday lending solutions for homeowners.
May 28, 2017
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Please refer to the corresponding number in the tables to the right.

Example 1 to 5: Second Mortgage Financing

These examples are based on a 20-year amortization schedule and a two-year term, fixed at 6.95 percent compounded monthly. The loan total includes all set up costs for the second mortgage.

For example, example one illustrates a second mortgage for net proceeds of $15,000. The monthly payment would be $139 for a two-year term. The annual interest rate during the term of the mortgage in this example is fixed at 6.95 percent-compounded monthly. The gross amount of the mortgage is $17,900 and includes all set up costs for the mortgage.

Example 6 to 10: First Mortgage Financing

These examples are based on a 25-year amortization schedule with a mortgage term of one-year plus one-year, with a fixed rate of 3.99 percent compounded monthly.

There is no amortization in the second year of the mortgage as payments are interest only. During the first eleven-months of the mortgage contract, there is an early payout penalty equivalent to three-months interest on the outstanding balance, if a two-year term is chosen there is an early payment penalty equivalent to three-months interest on the outstanding balance, during the first eleven-months of the second year.

For example, #6 illustrates a first mortgage for net proceeds of $200,000. The monthly payment would be $1,133 for a one-year term. If you decide to take a two-year term, the second year payment is set as an interest only payment amount based on the advertised Bank of Nova Scotia Prime Lending Rate (BNSPLR), in effect one-year less a day from the term due date plus 3.99 percent compounded monthly. The gross amount of the mortgage is $214,700 and includes all setup costs of the mortgage.

The variance between net proceeds and gross amounts in all examples account for the costs and fees associated with establishing the mortgage and include lender, discount, miscellaneous legal and application fees. The lender charges these fees for establishing and arranging the loan.

Example 11: Developer Mortgage Financing

In this example, there is a one-year term and 25-year amortization.

All fees are for illustrative purposes only. Additional or lesser fees may apply which would further increase or decrease the gross amount of the mortgage loan payable and therefore the effective rate of interest charged (A.P.R.). Approval, interest rates and fees are subject to equity available and current status, further, interest rates and fees may change without notice.

Total cost of credit: Example 1 - $5,665.98; Example 2 - $7,939.82; Example 3 - $14,987.44; Example 4 - $22,605.41; Example 5 - $34,540.97; Example 6 - $38,227.24; Example 7 - $47,176.71; Example 8 - $56,651.29; Example 9 - $75,577.22; Example 10 - $90,816.90; Example 11 - $188,729.82

  • Mortgage rates and monthly payments shown are for illustrative purposes only and are subject to change.
  • Annual mortgage interest rate is calculated monthly not in advance.
  • After deduction of applicable lender fees.
  • APR = Annual Percentage Rate
  • OAC = on approved credit, subject to area and certain other limiting conditions.
  • Online Credit Bureau access provided independently and securely by Equifax Consumer Services Canada for a fee determined by Equifax.