Types of Scotiabank mortgages
Scotiabank offers a range of mortgage solutions for different homeownership needs. With Scotiabank, you can:
- Get financing for buying your first home or another property
- Renew your mortgage renewals
- Get a home equity loan
- Switch your mortgage opened in another bank to Scotiabank
Here are the mortgage types offered by Scotiabank:
- Fixed-rate mortgage — your rate and payment amount don’t change throughout the term of your mortgage
- Variable-rate mortgage — your rate changes in accordance with the Scotiabank Prime Rate fluctuations
- Closed-term mortgage — you cannot pay out your mortgage before the end of the term without prepayment charges
- Open-term mortgage — you can pay out your mortgage at any time penalty-free
- Short-term mortgage — you can pay out your mortgage or change it by the end of the term (the available terms are 6 months, 1 year open or closed terms and 2-year closed terms)
- Long-term mortgage — your rate and payment amount stay consistent for the term of your mortgage (the available terms are 3 to 5 years, 7 years, and 10-year closed terms)
To unlock more borrowing options with your mortgage, you can sign up for the Scotia Total Equity® Plan (STEP). By linking your mortgage to STEP, you can get access to further financing in the amount of up to 80% of the value of your home.
How to apply for a Scotiabank mortgage?
Applying for a mortgage starts with getting pre-approval. During this procedure, the lender should conclude whether you qualify for the desired loan amount based on your financial situation.
Upon getting a mortgage pre-approval, the lender will provide you with the proposed loan details, including term and interest rate.
The mortgage pre-approval process started at a branch can take a few days or even weeks. To help clients apply for a mortgage quickly, Scotiabank has introduced the eHOME portal. Through eHOME, you can get a mortgage pre-approval, submit a mortgage application, and get a mortgage approval — all online.
According to the Scotiabank website, getting a mortgage pre-approval through the eHOME portal can take just a few minutes. Once you get pre-approval, you can submit the full mortgage application through eHOME, without a visit to a branch.
Requirements
To get a mortgage pre-approval, you will need to verify your identity, financial capabilities, and employment status. Therefore, be sure to prepare the following documents:
- Government-issued ID
- Proof of income — a pay stub (for employed) or notices of assessment (for self-employed)
- Your employment info
- Information about assets you own
- Information about your other debts (if any)
Depending on the situation, a Scotiabank financing advisor may request additional information from you.
Pros and cons
Here are the pros of Scotiabank mortgages:
- A variety of mortgage types and related products
- Competitive interest rates
- A possibility to apply and manage a mortgage online
- Open-term mortgages allowing you to avoid prepayment charges
- An opportunity to increase your borrowing power with the Scotia Total Equity® Plan when getting a mortgage
Still, keep in mind that certain mortgage types come with charges for early prepayment or payoff. So, you need to decide beforehand whether you are willing to make changes to your mortgage throughout the term.
How to make a payment?
You can make your mortgage payments online or through the Scotiabank mobile app. Just sign in, select your mortgage account and find the available payment options in the “Additional services” section.