A mortgage is a loan that helps you buy or maintain a home, land, or other real estate. The borrower agrees to repay the lender over time through scheduled payments, which cover both the loan’s principal (the original amount borrowed) and interest (the lender’s fee for borrowing). The property itself acts as collateral, meaning the lender can take possession if the borrower fails to repay. To qualify, borrowers must meet certain requirements, such as minimum credit scores and a down payment. Mortgage applications also go through a detailed underwriting process before final approval. There are many types of mortgages available, each designed to meet different borrower needs.
At Star Finance, we offer 1- to 3-year fixed-rate mortgages. By stretching payments over more years, you can reduce your monthly payment; however, this increases the total interest paid over the life of the loan. We can customize your amortization schedule to fit the monthly payment you’re most comfortable with. Below are the 4 types of mortgages we offer:
With a fixed-rate mortgage, your interest rate and monthly payment remain the same throughout the loan term. This stability makes it one of the most popular and predictable mortgage options.
An interest-only mortgage allows borrowers to pay only interest for a set period. While this lowers payments in the short term, it requires careful financial planning and is generally best suited for experienced borrowers.
A reverse mortgage works differently: it’s designed for homeowners aged 62 or older who want to convert part of their home’s equity into cash, without selling their property.
An open mortgage offers short-term flexibility with repayment terms of 1 to 3 years, allowing you to pay down or pay off the loan at any time without penalties. It’s ideal for borrowers who expect additional funds soon — such as from a sale, settlement, or refinancing — and want the freedom to clear their mortgage without being locked into long-term commitments.