How to compare Mortgage Products

The best way to compare mortgage products from various lenders is to make a Mortgage Comparison Chart. From the chart it is easy to compare the positive and negative features and characteristics of any mortgage. This will help an investor make informative decisions about which mortgage product best suits their risk level.

The following Mortgage Comparison Chart is only a brief method of analysis and you should consult with a mortgage professional. Completing a chart such as the following will help an investor make more informative decisions regarding debt financing before purchasing a property.

This examples draws on mortgage products offered by the Canadian Imperial Bank of Commerce (CM) and the Scotia Bank (BNS).

Mortgage Comparison Chart

Institution	CIBC	Scotia Bank
Mortgage	Better Than Prime Mortgage	Unlimited Rate Mortgage
Mortgage Features	Term: 5 years Closed Rate: Variable	Term: 3 years Closed Rate: Variable
Characteristics	Rate: 1.01% below CIBC Prime for first 9 months, 0.25% below CIBC Prime rest of 5 year term.	Rate: 0.25% below ScotiaBank Prime Rate for full 3 year term.
Current Prime Rate	6.25% APR	6.25% APR
Current Rate on Mortgage	5.24% (first 9 months) 6.00% (rest of 5 year term)	6.00% (full 3 year term)
Amortization Period	Up to 40 years (additional insurance charges apply)	Up to 40 years (additional insurance charges apply)
Payment Frequency	Weekly, bi-weekly, semi-monthly, monthly	Weekly, bi-weekly, semi-monthly, monthly
Payments	May fluctuate with changes in interest rates	Stay the same: if rates increase more of payment goes to interest, if rates decrease more of payment goes to principle
Flexibility	Lock in to a closed, fixed rate mortgage with a term of 3 years or more without prepayment costs. Prepay up to 15% of original mortgage amount annually without penalty. Original payments may be increased up to 100% during the term without penalties.	Early renew at any time to any closed term, fixed rate mortgage product with term of 3 years of longer with no interest penalty. Prepay up to 15% of original mortgage amount annually without penalty. Original payments may be increased by 15% each year for current term without penalties.
Special Deals		May choose between either 0.25% Below Scotiabank Prime Rate or Cash back of 1% of loan amount with Scotiabank Prime Rate * with cash back you must repay the prorata amount provided if the mortgage is paid out, assumed, transferred or renewed before maturity.