Canadian home mortgages are handled a bit differently than those in the United States (US). In the US, home mortgages are ultimately funded by government entities whereas in Canada and elsewhere in the United Kingdom (UK), home mortgages fall under the auspices of banks, credit unions, and building societies.

Without government regulations and limitations, Canadian mortgage lenders have the freedom to be more competitive and innovative than their US counterparts.

In the UK, each lender establishes a standard variable rate of interest for mortgage services that is based on deposits and/or money market values. These mortgage rates are linked, but not governed, by the Bank of England.

One tool to help work through the mortgage maze is the Canadian mortgage calculator. This is a program that will help a perspective homebuyer to find the most suitable mortgage options for his or her financial situation.

A perspective homebuyer can enter the appropriate data, such as income, loan amount desired, and lender information, in the Canadian mortgage calculator software program to find the most suitable sources of mortgage financing.

Based on personal data, the types of mortgages that may be suggested by the Canadian mortgage calculator include:

Fixed rate – the interest rate doesn’t change over the first few years of the loan but varies after a specified time.
Capped rate – the interest rate varies but cannot rise higher than the cap, or highest rate, specified in the mortgage agreement.
Capped and collared – specifies both a highest and lowest interest rate allowed.

Discount rate – the lender’s standard variable rate is reduced by a certain percentage during a set period of time, usually in the first few years of the loan.
Cashback mortgage – the lender provides the buyer with an advance on a percentage of the loan at its inception.

In addition to these rather common mortgages, the Canadian mortgage calculator can also suggest a combination of styles, drawing from the standards. Throughout the UK, home ownership is encouraged and lenders can be quite accommodating.