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Let us guide you through your next move

Whether you're buying your first home, or renewing for the third time, we're here for you with helpful advice, tools and tips.

Buy my first home

Buying a home is an extraordinary adventure that comes with a lot of questions. We're here to help.

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Refinance or renew my mortgage

Your mortgage might have been a perfect fit five years ago. Let's look at mortgage options that are the right fit for you today.

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Switch my mortgage

Already have a residential mortgage elsewhere? Transfer it to us and you could get $1,000 cash back*.

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Home Sweet Bonus® 


Earn a $1,000† bonus towards your first mortgage with us

Simply make a minimum $100 recurring payment every month and earn a savings bonus towards your Island Savings mortgage.

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Featured Mortgage Rates

5-Year Fixed Closed - Insured**

4.14
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5-Year Fixed Closed*

4.54
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5-Year Variable Closed - Insured**

4.30
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5-Year Variable Closed*

4.70
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*The fixed mortgage rate is only available to members with greater than 20% down payment, purchasing a residential, owner occupied property valued at under $1,000,000, and who meet other conditions. A premium may be applied to the rates for all other mortgages. Please visit a branch or call us at 1-888-597-8083 for further details.

**This insured mortgage rate is only available to members with less than 20% down payment, purchasing a residential property valued at under $1,500,000, who are eligible for and purchase mortgage default insurance and meet other conditions. Mortgage default loan insurance is required by lenders when homebuyers make a down payment of less than 20% of the purchase price. Mortgage loan insurance helps protect lenders against mortgage default, and enables consumers to purchase homes with a minimum down payment. The premium is calculated based on a percentage of the amount borrowed. Your premium can be paid upfront in a single lump sum payment, or it can be added to the total balance of your mortgage and included in your monthly payments – in this case, interest will apply to the premium as well. The minimum down payment requirement for mortgage default insurance depends on the purchase price of the home. For a purchase price of $500,000 or less, the minimum down payment is 5%. When the purchase price is above $500,000, the minimum down payment is 5% for the first $500,000 and 10% for the remaining portion. Mortgage default insurance is available only for properties with a purchase price or as-improved/renovated value below $1,500,000.

†Mortgage rates are subject to changes without notice and are available O.A.C. Fixed mortgage rates are compounded semi-annually; variable mortgage rates are compounded monthly. Mortgage rates are based on a 25 year amortization. Terms and conditions may apply. Mortgage funds must be advanced within 12 days of the application date. These rates are discounted and cannot be combined with any other rate discounts, promotions or offers. Additional fees may apply. For specific Annual Percentage Rate (APR) rates, please contact us.

Understanding Mortgages

What is a mortgage?

A mortgage is a loan used for the purchase of a home, land or other types of real estate. It’s typically offered through a financial institution and is paid back through a series of regular payments made up of principal repayment and interest charged.

Your mortgage is:

  • Secured by the property
  • Required to have a down payment of 20% in most cases unless mortgage loan insurance is purchased and depending on the value of the asset
  • Generally paid back over 25 years which is called the amortization period
  • Made up of multiple terms renewed - usually 5 years


Here are some important mortgage terms:

We offer open and closed mortgage types; along with the option to convert between a variable closed mortgage term to a fixed-rate closed mortgage term without any penalties. This offers the flexibility to change before the end of your term and provides piece of mind knowing you’re not locked into one type for the entire duration.

  • Open Mortgages: Offers flexibility to make large payments and potentially pay off the mortgage before the term is complete but may have larger interest rates attached.
  • Closed Mortgages: Has a pre-determined interest rate and pre-determined pay-back period. To pay off the mortgage sooner, could mean a financial penalty depending on the terms of your loan.
  • Convertible Mortgages: Allows the homeowner to change the type of mortgage during the term. You could start with an open mortgage and then lock into a closed mortgage.

With a fixed rate mortgage your rate stays the same for the whole term of your mortgage and you can relax knowing what your payments will be. A fixed-rate mortgage is available as open, closed or convertible and in terms from 6 months to 10 years.

A variable rate mortgage typically will offer a lower interest rate than a fixed rate mortgage. Your mortgage payment remains the same the whole term, however, the interest rate will fluctuate with any changes in our prime interest rate. If interest rates go down, you could pay off your mortgage faster as more of your payment will go towards paying off your principal. If the prime rate goes up, more of your mortgage payment will go towards covering interest costs. A variable rate mortgage is available as open or closed on a 5 year term, and you can switch over to a fixed rate mortgage any time with no penalty or fee.

Whether you choose a fixed rate or a variable rate mortgage, take advantage of these mortgage features:

  • Choose from flexible payment terms: weekly, bi-weekly, semi-monthly and monthly
  • Save money by opting to increase your payments by up to 20% each year
  • Pay your mortgage down faster by opting to prepay it by up to 20% of the original amount each year

When you decide on a fixed or variable mortgage rate you also decide on the amount of time you are committed to that rate. These can range from six months to several years, most common is 5 years.

  • A short-term mortgage generally offers a lower interest rate than a longer-term mortgage. When current rates are high, and you think rates may drop, choosing a short-term mortgage lets you lock in for a shorter period. A short-term mortgage may also be a good option if you plan to sell your home or pay off the mortgage early.
  • A long-term mortgage generally offers a higher interest rate than a shorter-term mortgage. When current rates are reasonably low, choosing a longer-term mortgage secures the interest rate for a longer period of time and makes budgeting easier.

Prepayment charges may apply when you prepay your mortgage balance before the maturity date. Use our mortgage prepayment charge calculator to estimate what it may cost to pay all or part of your closed mortgage before the term ends.

To learn more about prepayment penalties, visit the website of the Financial Consumer Agency of Canada at: https://www.canada.ca/en/financial-consumer-agency/services/mortgages/reduce-prepayment-penalties.html.

Flexible Schedule

Choose a payment schedule that works for you and your budget. Choose either weekly,  bi-weekly, semi-monthly or monthly payments.

120-day Rate Guarantee

Still looking for the perfect property? It takes time, we get it. Your pre-approved rate is guaranteed for 120 days. Keep hunting!

Prepayment Options

Prepay your mortgage by up to 20% of the original amount each year (conditions apply).

Flexible Options

Choose between fixed or variable mortgage rates and between open or closed mortgage terms.

Skip a Payment

Sometimes life hands us a lemon (occasionally it plants a lemon grove in our backyard). Skip a payment when the unexpected happens (conditions apply).

Mortgage Protection

Choose coverage options to ensure your mortgage payments will be made in the event of a job loss, illness or death.

Mortgage life insurance

Mortgage insurance helps your family retain its home if you (or your co-borrower) die before the mortgage is paid off.

  • Pays the outstanding balance of an insured mortgage up to $1,000,000
  • Premiums are based on your age and the amount of your mortgage when you apply for coverage
  • Available for purchase between the ages of 16 and 69 (with coverage ending at age 75)

 

Mortgage disability insurance

A disability rider ensures that your mortgage payment will be made in the event you are ill, or injured, or unable to perform your usual job.

  • Available for purchase between the ages of 18 and 69. Joint coverage is available at no additional cost (benefits based on 100% unless specified)
  • Benefits start after you have been off work for 60 days and continue up to 24 months for each period of continuous disability
  • Since benefits are paid directly to your mortgage at Island Savings, there are no tax implications

 

Loss of employment

A loss of employment rider ensures that your mortgage payments will be made should you become involuntarily unemployed.

  • Covers your mortgage payments up to a maximum of $3,000 per month.
  • Available for purchase between the ages of 18 and 69. Joint coverage is available for no additional cost (benefits based on 100% unless specified).
  • Benefits are paid after you've been off work for 60 days and continue for up to 9 months for each claim.
  • Since benefits are paid directly to your mortgage at Island Savings, there are no tax implications.

 

Critical illness

If you are diagnosed with life-threatening cancer, or suffer a heart attack or stroke, mortgage critical illness insurance will pay off your mortgage balance in full.

  • Coverage amounts must equal life coverage and must be between $5,000 and $1,000,000.
  • Available for purchase between the ages of 18 and 59. (Coverage ends at age 75.) Joint coverage is available at reduced costs.

 

Payment protection coverage is optional and is underwritten and provided by CUMIS Life Insurance Company. Coverage is governed by the terms and conditions of the creditor group insurance policy issued to the creditor and is subject to terms, conditions, exclusions and eligibility requirements.

 

How it works

Get advances to pay for building costs. Funds are distributed typically in 3-6 stages (known as draws) throughout the construction period. While construction lasts, you are responsible for interest-only payments. The typical stages are:

  • Purchase of land
  • Foundation: site set-up, excavation, drainage and piping, and slab construction
  • Framing: wall frames, roof trusses, roughing in, plumbing water, plumbing gas, electrical and wrap
  • Lock-up: windows, doors, roofing, drywall, insulation, wiring and plumbing
  • Completion: exterior and interior finishing

After the home is built and ready to occupy, the construction mortgage is converted to a conventional mortgage. 


Key Features & Benefits

  • Available for owner-occupied or rental/investment properties
  • Maximum lending is 75% of appraised value (based on land value and approved plans)
  • Maximum construction term is 18 months 

Speak to an advisor

Whether you're buying your first home, or renewing for the third time, we're here for you with helpful advice, tools and tips.

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Everything you need to know about mortgages

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Need more help choosing your mortgage?


Call us at 1-888-597-8083, our advisors are happy to help you find the right solution.

Learn more about your mortgage options on the Financial Consumer Agency of Canada's (FCAC) website.

 
 

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