Why Mortgages aren’t just about rates

Why rate shouldn’t be your only consideration!

If you are seeing a rate advertised online that looks too good to be true chances are, it is.

In the mortgage and lending business, there is a product called a no-frills mortgage which offers rates that are extremely competitive and lowest in the market, but these low rates obligate you to give up other benefits that may not be important to you until a few years down the road.

These products often come with additional restrictions in the form of increased payout penalties, restrictive pre-payment privileges and or bona-fide sale clauses (which only let you out of the mortgage if you sell the property).

If a rate seems too low to be true, I encourage you to ask some questions, such as:

• Is there a higher pre-payment penalty if I pay this mortgage off sooner?
• Will I be able to move my mortgage to another lender or institution and break my term, if I want to?
• How is this mortgage registered on title?
• Can I make extra payments on this mortgage (referred to as pre-payment privileges)?
• Can I port (move) this mortgage to another home? Can someone assume this mortgage from me?

As with most things in life, if it seems too good to be true, there is usually a catch.

The advantage of the No Frills mortgage product is lower rates.

There may be more restrictions in the fine print so I’d recommend that you ask a lot of questions and find out exactly what the restrictions are on the mortgage you are signing. Be sure to read the fine print! You don’t want to sign for the lower rate, and be surprised down the road when you try to sell the property or refinance, and find out you have additional restrictions that you were not aware of.

Everyone wants a low mortgage rate, and it’s my job to show you how to get the best rate for your financial situation and circumstances, without sacrificing the quality of your mortgage.

Please contact me to have a meaningful interest rate conversation where we can compare regular rate offerings and no-frill options so you can make an educated decision when it comes to your mortgage.