motusbank fixed-rate mortgages
With a fixed-rate mortgage, you'll know exactly how much your mortgage payments will be every month. The interest rate you pay on your mortgage will remain constant for the duration of your mortgage term.
motusbank offers fixed-rate mortgages in 6 month, 1, 2, 3, 4, and 5-year terms.
On the 5-year fixed rate mortgage, motusbank also offers a high ratio mortgage option. The high ratio mortgage requires you to place a down payment of less than 20% on your home purchase. You'll also be required to have mortgage default insurance to qualify for a high ratio mortgage.
If you're looking for the ability to pay off your mortgage in full without penalty, motusbank offers a 1-year open term mortgage. This 1-year open term mortgage allows you to make unlimited prepayments on your mortgage, whereas their other mortgages come with prepayment limits.
motusbank variable-rate mortgages
If you can take on a little more risk, a variable rate mortgage could be right for you. With a variable rate mortgage, the interest rate you pay fluctuates with prime lending rates. If prime rates remain low or decrease, you'll pay less in interest costs. If they increase, you'll pay more.
motusbank offers variable-rate mortgages in 5-year terms. They provide a conventional and a high ratio 5-year variable rate mortgage. They also offer a 5-year open term mortgage, for those looking for unlimited prepayment privileges on their variable rates.
motusbank prepayment options
Making prepayments on your mortgage will allow you to pay off your mortgage quicker and reduce your interest costs. Any extra payments you make on your mortgage, over and above your contracted mortgage payment, is considered a prepayment.
On closed term mortgages, motusbank allows you to make lump-sum prepayments of up to 20% of your original mortgage principal every year. They also allow you to increase your regularly scheduled mortgage payments by up to 20% per year, as well.
Open term mortgages, on the other hand, don't have prepayment limits. You can make as much in prepayments as you'd like, without any limitations.
The Friends and Family mortgage
If you're having challenges getting a conventional mortgage on your own, motusbank offers Friends and Family mortgage. With this mortgage, up to four people can be on the mortgage title together. Each person named on the mortgage will get a share of the risks and financial upside of property ownership.
motusbank recommends that you, along with the other co-owners of the home, consider getting a joint ownership agreement together. This agreement takes care of any messiness that may come from investing in real estate with other people.
To get started with the friends and family mortgage, you can contact motusbank directly. You'll also need to get a lawyer to draft any joint ownership agreements you may want to have.
Launched in 2019, motusbank is one of Canada's newest banks. They're owned and backed by Meridian credit union, which is the 3rd largest credit union in Canada. motusbank offers an entirely digital banking experience, catering to Canadians who are entering their prime earning years.