Types of Mortgages
Fortunately for buyers, there are a variety of mortgages to choose from.
It is in your best interest to investigate each of them to determine which is the best for your situation. You probably won’t qualify for all of them. In fact, you may only qualify for one. But if you do qualify for more than one, you may save yourself money (and worry) in the long run if you do your homework before signing on the dotted line.
Fixed Rate Mortgages
Consider a fixed rate mortgage if either of the following describes you:
- You plan on living in your new home for many years, and/or
- 15-Year Fixed-Rate:
- Pay off the loan in half the time of a 30-year loan.
- Equity builds up more quickly than in a 30-year loan.
- Payments are higher (which may be a problem if you lose your job or become unable to work).
- 20-Year Fixed-Rate:
- Pay off the loan in 2/3 the time of a 30-year loan.
- The overall interest paid is considerably less than for a 30-year loan.
- 30-Year Fixed-Rate:
- The most common choice, especially for first-time homebuyers, as it’s the easiest of the fixed-rate loans to qualify for.
- Monthly payments are lower than for 15-year and 20-year loans. This can prove especially helpful if you do not have a lot of “padding” between the amount you can afford to spend and the monthly payment for your desired property.
- More desirable if you plan on staying in the same home for years, since equity builds more slowly than for shorter-term loans.
- For income tax purposes, this term provides the maximum interest deduction. You are not a risk-taker and prefer the stability of knowing how much your payment will be each month. Since most home loans are for a period of 30 years, if you want a payment you can count on for that long of a period of time, a fixed rate mortgage may be what works best for you. Once your loan amount and interest rate are calculated and locked in, a fixed rate mortgage will guarantee that you will have the same payment over the life of the loan. Making extra payments to principal will allow you to pay your loan off sooner. This may not always be the best choice, however. If interest rates are very high at the time you take out your loan, with a fixed rate mortgage you’ll be stuck with that high interest for the life of the loan (unless you choose to refinance). Conversely, if interest rates are very low, you’ll come out the winner with interest rates that will stay low no matter how high interest rates go in the future. The following are the advantages and disadvantages of the varying lengths and terms of fixed-rate mortgages:
Adjustable-Rate Mortgages (ARMs):
If you are more comfortable in taking a risk with your money or if interest rates are very high at the time you take out your loan, an adjustable-rate mortgage (ARM) may be the solution for you. You might also choose this type of loan if your planned ownership of the property is short-term or if you expect your income to increase to cover any potential rise in the interest rate.
- Generally, the interest rate when you take out your loan will be lower than a fixed-rate mortgage. Please note that this is true initially, not necessarily long-term.
- Since an ARM rate rises and falls depending on the prevailing interest rate, your mortgage payment will rise and fall accordingly. If your income is not sufficient to cover the highest possible payments, then this option is not for you. On the positive side, the lower initial payments will allow you to qualify for a larger loan than if you choose a fixed-rate. The downside is that your payments will increase if/when the rates go up.
- Typically, ARM interest rates are tied to a specific financial index (such as Certificate of Deposit index, Treasury or T-Bill rate, Cost of Funds-Indexed Arms or COFi, or LIBOR [London Interbank Offered Rate]) and your payment will be based on the index your lender uses plus a margin, generally of two to three points. Get the formula used by your lender in writing and make sure you understand what it means.
- Fortunately, the amount an ARM can increase is limited. There are “caps” on how much your lender can increase your rate, both for a period of one year and for the life of the loan. Plan ahead, and have your lender calculate what the maximum payment would be if your rate went to the highest amount allowed by the cap for your particular mortgage. If you are not confident you’ll be able to pay that amount on a monthly basis, perhaps you should reconsider this type of loan.
Convertible ARMs:
If neither the fixed-rate or the adjustable-rate mortgage seems like the best option, perhaps the convertible ARM will be right for you. This alternative combines the initial advantage of an ARM with a fixed rate after a predetermined number of years. Obviously, this type of mortgage has more advantages when the initial interest rate is low and the future rate is not guaranteed.
- Government Loans: Another mortgage option available to some people is a government loan, providing that you meet the qualifications for these loans.
- VA Loans: Veterans may qualify for a loan from the Veterans Administration. There is a limit on the amount you can borrow, so this option works best for those buying a lower priced home.
- FHA Loans: The Federal Housing Association offers loans to lower-income Americans. Look for the phrase “FHA approved” when looking at ads for homes.
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If you have ever caught yourself wondering what there actually is to do in Guelph, the honest answer is a lot more than most people expect. Between the festivals, the trails, the local breweries, and the quick trips out to the surrounding countryside, Guelph packs a surprising amount of variety into a city its size. Whether you have lived here for years or you are still getting to know the place, here is a rundown of some of the best things to do in and around Guelph right now. Spend a Morning at the Guelph Farmers' Market Held downtown every Saturday, the Guelph Farmers' Market is one of the oldest continuously operating markets in Canada. Local produce, baked goods, flowers, and handmade crafts fill the stalls, and it has become as much a social ritual for locals as it is a place to shop. If you want a genuine feel for the community, this is where to start your morning. Explore Downtown Market Square Market Square has become the heart of downtown Guelph, especially in summer. There is a splash pad for kids, plenty of stone benches for people watching, and it regularly hosts festivals and pop up events throughout the warmer months. It is an easy, low cost way to spend an afternoon downtown, and it puts you within walking distance of the city's best restaurants and shops. Walk the University of Guelph Arboretum Even if you have no connection to the university itself, the Arboretum is worth a visit. It covers more than 400 acres of gardens, forests, and trails, and it is completely free to explore. The red clay brick walkways around campus are also worth a stroll, blending historic architecture with the natural beauty of the grounds. Cool Off at Guelph Lake or Elora Quarry When summer heat sets in, locals head one of two directions. Guelph Lake Conservation Area offers swimming, camping, and paddling just outside the city, while a short drive brings you to the Elora Quarry, a former limestone quarry turned swimming hole surrounded by dramatic rock cliffs. Bring a swimsuit and something that floats, and you have got a classic summer day sorted. Sample the Local Brewery Scene Guelph's brewing history runs deep, going back to Sleeman Brewery, one of the city's oldest and most recognizable names. These days, spots like Royal City Brewing and Fixed Gear Brewing Co. have added their own flavour to the scene, and a self guided tour through a few of the city's taprooms has become a popular way for both locals and visitors to spend an evening. Try an Escape Room or Family Activity For something a little different, Guelph has a genuinely strong lineup of indoor entertainment for rainy days or cooler months. Escape room spots around the city offer everything from medieval prison themes to underwater adventures, and they consistently rank among visitor favourites for a reason. Add in bowling alleys, art studios, and family entertainment centres, and there is no shortage of ways to fill an afternoon regardless of the weather. Get Outside on the Trail Network Guelph's trail system deserves its own mention. The paths following the Speed and Eramosa Rivers connect neighbourhoods across the city, making it easy to walk or cycle for kilometres without ever crossing a major road. In winter, sections of the trail system get used for walking and cross country skiing, and nearby ski hills give residents a reason to stay active even when temperatures drop. Discover the Surrounding Countryside Part of what makes living in Guelph so appealing is how much is within easy reach. Aberfoyle Antique Market draws treasure hunters from across the region, Cox Creek Cellars and Fixed Gear Brewing Co. offer countryside tasting experiences, and the nearby town of Fergus transforms into a full blown Victorian steampunk festival every year, drawing visitors from well beyond Wellington County. A City Worth Exploring, Every Season What stands out most about Guelph is how much changes from one season to the next. Summer brings festivals, patios, and swimming. Fall brings crisp trail walks and harvest markets. Winter brings skating and holiday markets downtown. Spring brings the Arboretum back to life. However you like to spend a weekend, Guelph has a way of keeping things interesting all year long, which is a big part of why so many people who visit end up thinking seriously about calling it home.
One of the first things people notice when they start exploring Guelph is how much personality shifts from one neighbourhood to the next. Drive ten minutes in any direction from downtown and you will find a completely different rhythm of life. That variety is part of what makes Guelph such an interesting place to plant roots, but it can also make choosing where to live feel a little overwhelming if you are new to the area. Here is an honest, locally informed breakdown of some of Guelph's most talked about neighbourhoods, and what actually sets each one apart. Downtown and the Historic Core If walkability and character are at the top of your list, downtown Guelph is hard to beat. This is where you will find the oldest homes in the city, many with the kind of limestone facades and mature trees that give Guelph its Royal City nickname. Shops, restaurants, the Sleeman Centre, and the River Run Centre are all within walking distance, and the GO Train station makes commuting to Toronto straightforward. Downtown living tends to appeal to young professionals, retirees, and anyone who wants entertainment and errands within a short stroll. Exhibition Park Just north of downtown, Exhibition Park has a strong sense of community and some genuinely beautiful heritage homes. The park itself is a major draw, with space for families to spend an afternoon. It is a favourite for people who want charm and character without giving up proximity to the core. St. George's Park Sitting to the east of downtown, St. George's Park offers a quieter, more residential feel while still keeping you close to everything the city centre has to offer. It is often mentioned alongside Exhibition Park as one of the safer, more established parts of the city, and it attracts a mix of long-time residents and newer families drawn to the area's stability. Old University For anyone connected to the University of Guelph, whether through work or study, Old University is the obvious draw. It sits just south of the downtown core and offers an energetic, walkable atmosphere with easy access to campus. The mix of older homes and student rentals gives the neighbourhood a distinct, lively character that is different from anywhere else in the city. Westminster Woods Out in the southeast end of Guelph, Westminster Woods is one of the city's more recently developed neighbourhoods, and it shows in the design. Wide streets, a mix of detached homes, townhouses, and condos, and plenty of nearby parks like Baxter Trail and Pinch Park make it a popular choice for growing families. Several well regarded schools are within easy reach, which is a big part of the appeal for parents planning ahead. Kortright West and Kortright East Further southwest, Kortright West is known for being even quieter than its neighbour Westminster Woods, largely because Hanlon Road creates a natural buffer from busier parts of the city. Families here appreciate the community feel and the proximity to green spaces like Mollison Park and the Hazelwood Trail. Kortright East, meanwhile, often gets mentioned as one of the more desirable pockets of Guelph thanks to its blend of established streets and easy access to amenities. Sunny Acres and The Junction To the west, Sunny Acres has grown into a community that balances mature, tree lined streets with newer, more diverse housing options. It has developed a reputation for residents who care deeply about sustainability and green space, which fits naturally with Guelph's broader environmental identity. The nearby Junction area adds a bit more entertainment and retail variety for residents who want options close to home. So Which Neighbourhood Is Right for You Honestly, it depends on what season of life you are in. Young professionals and empty nesters often gravitate toward downtown for the walkability. Growing families tend to look south toward Westminster Woods or Kortright for newer builds and school access. Anyone connected to the university leans toward Old University for convenience. And people who prioritize quiet, established streets often end up in Exhibition Park or St. George's. There is no universally correct answer here, which is exactly why it helps to talk with someone who knows these streets firsthand. School boundaries, walkability, and even something as simple as which side of a road a home sits on can matter more than people expect once you start digging into a specific neighbourhood.
Ask anyone who has lived in Guelph for more than a year and you will hear some version of the same story. They came for a job, or school, or a house that made sense, and they stayed because the city grew on them in ways they did not expect. Guelph has a way of doing that. It is not flashy. It does not try to be Toronto. It just quietly does a lot of things right. If you are curious about what daily life actually feels like here, this is your honest, no fluff look at living in Guelph. A City That Still Feels Like a Community Guelph sits at around 150,000 people, which puts it in that sweet spot where you get real amenities, good restaurants, a hospital, a university, and a genuine arts scene, without losing the feeling that people actually know their neighbours. You will run into someone from your kid's school at the grocery store. You will recognize the barista. It is that kind of place. Guelph has a history that goes back to the 1820s, and you can feel it in the limestone buildings downtown and the mature tree canopy that shades entire streets in summer. The city has also been recognized for its green initiatives and environmental leadership for years, which shows up in everyday life through excellent parks, an extensive trail network, and a community that genuinely cares about sustainability. The University Influence The University of Guelph shapes a lot of what makes this city unique. It brings in energy, diversity, and a steady stream of research, culture, and events that a city this size would not normally have. Students bring life to downtown restaurants and cafes, while the university's agricultural and veterinary programs give Guelph an international reputation that punches well above its weight. Even if you never set foot on campus, its presence is part of what makes Guelph feel like more than just a bedroom community. Getting Around Downtown Guelph is genuinely walkable, which is not something you can say about a lot of Ontario cities this size. Shops, restaurants, the farmers market, and the GO Train station are all within a comfortable walk of each other in the core. Guelph Transit covers the rest of the city reasonably well, and cycling is popular thanks to a growing network of bike lanes and trails. For anyone who needs to get to Toronto for work, the GO Train from Guelph Central makes the trip in about ninety minutes, which has made the city an increasingly popular option for people who want space, character, and a slower pace without cutting themselves off from the GTA entirely. Neighbourhoods for Every Stage of Life One of the things people love most about Guelph is how different each neighbourhood feels. Downtown and the surrounding older areas like Exhibition Park and St. George's Park have character homes, mature trees, and that classic small city charm. Families often gravitate toward newer areas in the south end, like Westminster Woods and Kortright, where you will find larger lots, newer builds, and easy access to schools and parks. If you want proximity to campus life, Old University offers a walkable, energetic feel. There is no single "right" neighbourhood in Guelph. It really comes down to what stage of life you are in and what kind of daily rhythm you want, which is part of why so many long term residents end up moving across the city rather than leaving it entirely as their needs change. Green Space Everywhere Guelph has an outsized amount of parkland and trail access for its size. The Speed River and the Eramosa River both wind through the city, and the trail systems that follow them connect neighbourhoods in a way that makes it easy to walk or bike almost anywhere. The Guelph Arboretum, run by the University of Guelph, is a genuine gem, offering over 400 acres of gardens, forests, and trails that are free and open to the public year round. The Food and Local Business Scene Downtown Guelph has built a reputation for its independent restaurant and brewery scene. Sleeman Brewery has deep roots here, but newer craft spots like Royal City Brewing and Spring Mill Distillery have added to a growing list of places locals are proud to show off to visitors. Add in a Saturday morning at the Guelph Farmers' Market, one of the oldest continuously running markets in Canada, and you start to understand why so many residents describe Guelph as a place that feels lived in rather than manufactured. Why People Stay At the end of the day, Guelph works because it offers a genuine balance. You get city amenities without the congestion, small town warmth without feeling isolated, and enough green space and community programming to keep life interesting through every season. Whether you are raising a family, commuting to the GTA, or simply looking for a community that feels like home, it is easy to see why so many people who come to Guelph for a season end up staying for good. If you are exploring what life in a particular Guelph neighbourhood might look like, it is always worth chatting with someone who knows the streets, the schools, and the day to day rhythm of the area you are considering. That kind of local perspective tends to make all the difference.
