Researching the right mortgage can be challenging with the new rules the government has implemented these last few years. Now, more than ever, there are mortgages that look the same at first glance, but they have different components to them. It may look like the rate is the only difference. This, in many cases, is not the way it is. A 5 year mortgage from bank/lender A may be different from bank/lender B, C, and D in many ways.
Getting a mortgage is similar to ordering a steak. You can’t just walk into a Steak House and say “can I get a steak please”. There are many different cuts of steak, are you looking for a Beef Tenderloin, Filet Mignon, Strip Steak, Top Sirloin, T-bone, or rib eye…? This can also be the same with mortgages. You can’t just say I would like a 5 year mortgage, there are many ways to get a 5 year mortgage – high ratio (insured), conventional, fixed, variable, quick close, or no frills just to name a few.
To each individual the inside is the most important part. How would you like your steak cooked – rare, med rare, medium, med well, well done? Similar with a mortgage, what the mortgage offers is very important. Would you like it portable, assumable, collateral registered, with or without pre payment abilities (how much would you like to prepay?), or with smaller payout penalties?
Knowing the difference of all these is key when you are looking to get a loan on something that is likely going to be one of your largest investments you will make. When using a broker, this gives you access to many lenders so you have the option to pick between all these different types of mortgages with all the different mortgage abilities. Using a broker is like going to a steak house versus going to a lounge that just offers a steak sandwich. Overall when all is said and done, it may be the basic cut that you are looking for, but it is very important to look at all the options that are available to you.
I have access to a variety of lenders with different mortgages for many different situations. Call or email me and I can help you find the right mortgage for your appetite.
Scott Bourke
Cell 403-598-1055 www.financereddeer.ca
Alberta Mortgage Information 