You see the advertisements, one company is offering a lower rate than the other. On paper that is the best way to go, But is it the best thing for YOU and your situation?
A lot of lenders offer a quick close, or a No Frills mortgage, and with this they will offer you a lower rate than the others may be advertising.
A quick close offer often usually has a condition of a 45 or 30 day closing period. If you want this rate you have to write an offer on a home and take possession of the home within the given time period. They will NOT offer a pre-approval on this product. This works for some people, and for some people they do not like the extra stress of trying to fit everything into a 30 day period. If you are renting, make sure you check with your landlord about the amount of notice you have to give upon moving out.
A No Frills Mortgage is another way to get a mortgage with a discounted mortgage rate. With most No Frills mortgages the lenders will not allow you to do ANY lump sum payments against your mortgage for the given term. So paying your mortgage down at an accelerated pace is not allowed. Sure, not a lot of people take advantage of this option, But is .10% less interest rate worth it? Even switching to a rapid bi-weekly payment is often not allowed with a No Frills Mortgage. Another downside to this type of mortgage is often they are not portable either, so if you decided to move within the 5 year term that you just signed up for, be ready for what could be, a pretty hefty payout penalty.
There is so many things to consider when you are looking at a mortgage for your home, but it does not have to be a stressful step. Talk with a mortgage agent, like myself, about all your mortgage options and let me help YOU find the best mortgage product for YOU.
Don’t just get a mortgage, KNOW your mortgage.
Email me email@example.com with any questions.
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Scott Bourke, AMP
Dominion Lending Centres Regional Mortgage Group
866/403-343-1125 Phone 403-343-1126 Fax