Financial Fitness

Which mortgage is right for you?

By Interior Savings
May 7, 2019

There are a wide variety of mortgage solutions available today and it can be confusing to understand the differences between them. At Interior Savings, we know how important it is to choose the mortgage that fits your needs best, so we take the process very seriously.

Although your Mortgage Specialist will walk you through the mortgage selection process to make it as easy as possible, here is a list of the available options at Interior Savings. Let’s start with the basics:

  • Closed Mortgage
    A closed mortgage does not allow you to make additional or unscheduled payments, except for those permitted by your mortgage agreements.
  • Open Mortgage
    An open mortgage allows you to make payments towards your principal at any time without penalty. This is the best option if you want the freedom and flexibility to make additional and unscheduled mortgage payments and pay off your mortgage sooner.
  • Variable Rate Mortgage
    With a variable rate mortgage, the interest rate may change periodically. The monthly payments remain the same but the amount that goes towards the principal and interest may fluctuate accordingly. Variable rate mortgages are a good option if you think that interest rates will remain the same or decrease during the mortgage term.
  • Fixed Rate Mortgage
    In a fixed rate mortgage, the interest rate remains constant. This is a good option if you think that interests’ rates will rise during your mortgage term or if you simply want the peace of mind from knowing exactly how much of your monthly payment will go towards the principal.
  • Cash Back Mortgage
    This mortgage operate under a fixed rate and is ideal for those looking to consolidate debt. You’ll get up to a total of 5% cash back – a great option when you need a little help with moving costs, home renovation or need to buy some new furniture. In fact, it can help with tax efficiencies for renovations on rental properties as well. This solution is also ideal if you’re looking to consolidate debt.

Special Mortgage Solutions

We know that life’s unique situations can make buying a home somewhat complex. That’s why, in addition to the variety of mortgages listed above, Interior Savings provides members with a few more comprehensive mortgage options:


  • theWorks: Interior Savings offers theWorks as our most complete loan and mortgage solution. It gives you flexibility and choice in what you’re borrowing for – a second home, investments, a car, your own business – whatever you need. You can also borrow up to 80% of your current home’s appraised value or receive up to 95% financing for a new home purchase. Plus, this mortgage allows you to avoid future mortgage fees as well as save on legal fees associated with refinancing a mortgage!


  • Purchase Plus Improvements: Sometimes, your dream home just needs a little elbow grease to reach its full potential. We can help with that. With our Purchase Plus Improvement mortgage solution, you can finance your renovations as part of your mortgage instead of using financing options like lines of credit or credit cards, which usually have higher interest rates. The payments are also spread out over the life of the mortgage, making them more affordable.


  • Family First Mortgage: We created this solution to help parents and grandparents help their kids in achieving their homeownership dreams – something that seems to be becoming harder and harder to realize.

    With this plan, the borrower can qualify for a mortgage and a loan for their down payment. The loan is secured with a term deposit that’s in their name (or their parent’s). The term deposit is then held as a security for the loan until they pay it out in full or refinance it into the mortgage. To top it off, the term deposit continues to be an interest-earning investment within their portfolio.


  • One Grand Plan: This mortgage solution is perfect for someone who is thinking about buying a new home in the next few years and wants to get a head start on their savings.

    To start, you’ll deposit $100 for the setup of your One Grand Plan account. Then, you’ll continue to deposit $100 every month after that and after 36 months, when you open your mortgage, we’ll reward your dedication with a $1,000 bonus.

    The One Grand Plan also pays interest on all your deposits at a great rate.


Get up to $1,000 cashback!

If you feel like your current mortgage agreement isn’t aligning with the needs of you and your family, perhaps it’s time for a change. Our Mobile Mortgage Team is ready to answer your questions wherever and whenever you like. The best part is that they live where you do, so they provide you with personalized expert advice!

Before we forget, Interior Savings is also offering up to $1,000* cashback for qualifying new mortgages this season. Contact one of our Mortgage Specialists for more details!


*The Mortgage cash back incentive is available on most mortgages new to Interior Savings Credit Union. Incentive is not available on construction or broker advantage mortgages. The mortgage incentive amount is calculated at 0.25% of the mortgage amount, up to a maximum of $1,000. Minimum mortgage amount of $100,000 required. Talk to your mortgage specialist for further details, further terms and conditions may apply.