What is the “Best” Mortgage Rate?

What is the “Best” Mortgage Rate?

Some say: the best mortgage is the one with the “lowest” rate and often it is as a ‘no-frills’ mortgage will save you on interest but  a ‘no frills’ mortgage can cost you a lot more in actual borrowing costs.

4 Potential Negative Impacts of a ‘No Frills’ Mortgages:

  1. the penalty to break your mortgage

  2. porting rules

  3. pre-payment privileges

  4. refinance options

Mortgage shoppers should ask themselves:
  1. What are the odds I’ll move before my mortgage matures?
  2. Where will I move and how much might I spend on the new home?
  3. Will I need to tap my equity at some point?
  4. Will I still qualify if I need to renegotiate my mortgage?
  5. Am I better off with a longer amortization?
Additional Questions:
  • Do you expect your earnings to change significantly?
  • Will you receive significant bonuses?
  • Will you need to move out of the area?
  • Will you upgrade when you have the financial means?
  • What is your relationship status?  Is there a chance you will enter (or exit) a relationship?
  • Will your family grow?
  • Will any family members move out (or back in)?
  • Do you plan on doing any renovations?
  • Will you require any significant amounts of cash for other parts of your life?
Bottom line:
Look before you leap; Consider the financial implications of any changes to your situation over the term of your mortgage.
Need a mortgage:
Ontario
British Columbia Mainland
British Columbia Vancouver Island

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