Sure we all want a great interest rate for our single largest debt, but take care that you don’t sell out on Rate alone. Currently a couple of banks are promoting 2.99% for 5 yr. fixed mortgages. That’s a great deal!!
But would you still think so if you knew:
You would be restricted with a maximum 25 yr. amortization
Reduced allowable pre-payment would only be 10% not their usual 20%
Reduced allowable increase in payments would only be 10% not the usual 20%
And that the mortgage was fully closed for the 5 years of the term unless you sold you house, paid a penalty to refinance with the same lender or took an early renewal with the same lender. They would own you for 5 years regardless of how your needs change!!
In mortgages it’s always good to be sure that you aren’t getting a bit of a break up front and then paying for it over the life of the mortgage. Banks are being super aggressive to get your business right now so make sure you are super aggressive in knowing what you are signing up for.
As Mortgage Brokers we are impartial providers of mortgage options. You get the best rate and terms for your personal financial situation and future financial goals. Get advice today so you know you can save in the future. Contact us today.
