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Which mortgage features are the most important?

It’s easy to look online for a mortgage rate. But rate is only one aspect of saving money on your mortgage over the long term. It’s essential that you also consider mortgage features. Here are the big ones –

Early Payout Penalties. There are lots of reasons why it makes good financial sense to break your mortgage, even though you can expect to pay a penalty. But not all lenders calculate penalties the same way, and the differences can amount to thousands. Life happens, so make sure you choose a lender that has a fair prepayment penalty. And watch out for no-frill mortgages that don’t let you get out of your mortgage at all, unless you sell or the term is up.

Pre-Payment Privileges. You want the ability to put lump sum amounts on your mortgage and increase your payments so you can pay down your mortgage faster and save on interest. You should always consider having this flexibility even if you don’t think you’ll use it; your situation may change that gives you the ability to pre-pay. This flexibility can also help you reduce an early payout penalty.

Collateral charge mortgage. This type of mortgage can be difficult to transfer to another lender and cost you legal fees if you do. You are more locked in, which means your lender may not offer you the best rates if you need to refinance or at renewal.  Watch out!

Porting Flexibility. This is important if there is a chance you’ll move i.e. job change, growing family. You’ll want to take your mortgage to your new place to avoid penalties.  But make sure your lender lets you increase too should you buy a more expensive home.

Blended Mortgage. If you move or refinance, a blended mortgage allows you to blend the rate of your current mortgage with the rate on the additional funds. This way, you don’t break your current mortgage and incur the penalty. Some lenders blend and extend to a new 5 year term, others blend only to the remaining term, or offer both.

There is definitely more to getting a mortgage than just rate. For more information, contact the team at MiMortgage.ca at 1 866 452-1100 or apply online now! It’s our job to help you find the right mortgage with the rate and flexibility you need to be a happy homeowner.

 

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Mortgage Strategies 101

Let Mortgage Intelligence guide you to find the best Mortgage Strategy

When applying for a mortgage – or when reviewing your current mortgage strategy – it is helpful to begin thinking about the mortgage options with which you would feel most comfortable.  By having an understanding of your priorities and preferences, the mortgage process will become more efficient and your satisfaction over the term of your mortgage is likely to be higher.

Important Questions

Although this is not an exhaustive list, it provides a good start.

1. Is some fluctuation in payments acceptable?
2. Do I want the comfort of knowing what my payment is every month and of knowing it will not change for the whole mortgage term?

Mortgage Strategies

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3. Do I want the lowest payment possible?
4. Do I want to pay down my mortgage as soon as possible?
5. How much down payment am I comfortable with, while not putting myself and my family into  financial difficulty?
6. Are there any credit issues about which I will need to provide documentation?

7. Is the Lowest Rate always the best choice?

 

There are numerous other considerations that your Mortgage Intelligence Mortgage Professional will discuss with you, depending on your situation.  He or she has access to an impressive array of mortgage choices, and can offer expert advice on which mortgage best suits your individual circumstances.  For knowledgeable advice throughout the mortgage process, contact Mortgage Intelligence.

Every Canadian deserves a home they can call their own.  Let  Mortgage Intelligence help you with a low rate solution! Apply today & save!

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