Let us help pick the best mortgage options for you!
Which mortgage options are the most important?
It’s easy to look online to find the most competitive mortgage rates but finding the best rates is only part how we can save you money. Remember, buying a home is long term investment. It’s really important that one not only considers the mortgage rates but also the mortgage options and features. Here are a few things you should be looking out for when searching for the best mortgage for you.
Ask for fair pre-payment penalties
Home ownership is a long term investment. It’s more than likely that things will pop that may make you want or need to break your mortgage. This means you could run into what are called pre-payment penalties. The good news is that not all lenders calculate penalties the same way. How they do it could mean the difference between thousands of dollars. Life is crazy an unexpected things happen so be sure to choose a mortgage package that has fair pre-payment penalties. The offered rate may seem great on paper but once you factor in life and the obstacles it presents us, a slightly higher rate with better security might actually offer better value over the long haul. When life gives you lemons, we’ll give you a mortgage with options and flexibility.
Let’s say your 2nd uncle twice removed remembered you from a family picnic and decided to put you in his Will. All of a sudden you have a bit of unexpected money and you have the opportunity to further secure your future. Putting down a lump sum of cash down on your mortgage can save you a lot of money in the long run! Does your mortgage allow for this kind of flexibility? We definitely suggest asking your lender if this option is available. Not only can this type of flexibility help pay off your mortgage even fast but it could also save you huge if you end up with an early payout penalty.
Collateral Charge Mortgage
A collateral charge is where the lender lends you more money after closing without the need of refinancing and lawyer fees. A collateral charge is non-transferable and cannot be assigned to a new lender like that of a regular mortgage. With a collateral charge you are also locked in which means the lender more than likely won’t be able offer you the best rates. Heads up on these kinds of “mortgages”. They can be risky.
Do you or your loved one have a job that could force you to relocate? Are you trying to land a big promotion in a new city? Perhaps you are planning on increasing the size of your family and want a bigger home someday? Ask your lender about Porting Flexibility. Porting Flexibility in a mortgage means you can transfer your mortgage to a new residence whether it’s down the street to a bigger house or to the land of opportunity on other side of the country.
Let’s say you want to move or refinance your home. By getting a blended mortgage, you have the flexibility to take your current mortgage and mix it together with the rates of a new one. Not only can this save you money if rates go down but it also keeps your current mortgage intact so you avoid penalties. Depending on the lender you will either be able to mix it up and extened it for up to five years or blend it only up to the remaining term. Some with even offer both options.
Let us help you pick the right mortgage
We are just scraping the surface of your mortgage options. As you can see here there is definitely a whole lot more to picking the best mortgage for you than just finding the best rate. It’s our job to get you informed, find the right mortgage with the rate and flexibility you need and make an educated decision towards becoming a happy homeowner.
Call Brad Murdoch and the team at The First Mortgage in Edmonton, Alberta today! Mortgage advice is always free and we are happy to answer any mortgage related questions you might have.