If you are looking for the lowest rate in the market, you will most likely have to give up some of the flexibility of the mortgage. This may affect the rate maintenance period as discussed above, but also the terms and conditions of the mortgage.
Certain mortgage rates advertised without options may have limited prepayment privileges. In the case of low rate mortgage RMGs, portability is limited. This results in significant penalties if you decide to break your mortgage sooner.
Although there is nothing wrong with choosing a product without too many options, make sure you know all the limitations.
“Do some research on the creditor, not just the rates. ” Here are the three most important questions to ask yourself:
- Who is the lender? – This is important because some lenders have horrible customer service. If you need to make changes to payments or find information about your mortgage, you will be facing a useless call center. Some of the best creditors have online platforms where you can make the changes yourself.
- What are the prepayment options? – Make sure they match your needs.
- How is the mortgage breakage penalty calculated? – The calculation of the penalties varies according to the creditors. Anticipate the inconvenience caused by the anticipated breakage of the mortgage loan. If you doubt that this could be a serious problem? Check out this page on calculating mortgage penalties.
Beware of sellers
I personally know a mortgage broker who broadcasts an X rate on sites with the objective of selling a more lucrative product to the client. If you end up with a rate totally different from the one you’ve seen advertised or are trying to sell you another product, it’s probably in your interest to work with someone else.
And now, the sales part …. The mortgage sector is constantly evolving. Advertisements on a rate site can not replace the experience. All mortgage brokers have more or less access to the same rates. Some choose not to invest in advertising for certain reasons. If you decide to work with someone who advertises on a rate site it’s just as good as working with a broker who does not.
Just make sure you ask the right questions and do a minimum of the research described in this article.
Do you have any comments or questions? Feel free to share them on this page.