Avoid these 5 common mistakes, and you will have no problem getting your mortgage faster, more efficiently, and with a clear understanding of the process: 1. Thinking banks are the first and best place to go for a mortgage Mortgage brokers can often beat the bank rates by using different lending institutions. The bank is […]
Not Always About Interest Rates
Three Big Mortgage Complaints
I read this article and it’s bang on with a few main concerns I’ve noticed and seen in my lengthy career as an independent mortgage broker. I’ll touch on two up front.Penalties: The banks have penalties anywhere from 3-5 times higher than the non banks we use. Here’s the best illustration. Pre-approvals: Since pre-approvals are […]
Mortgage penalty differences
There is, among many other things, one major reason why using an independent mortgage broker and a non-bank mortgage product, is far superior; how they calculate mortgage penalties when paying out your mortgage early. I took some time this week to create a small graph below to illustrate it as easy as I could. Now of […]
Top 5 Questions To Ask Your Mortgage Lender
1. How the penalties are calculated if I break my mortgage early? Specifically, ask what rate they use to calculate the “interest rate differential”. Typically, if the lender has “posted rates” they use these to calculate the penalty. If this is the case, the penalty can be 3, 4 or even 5 times higher than […]
Negative Amortization
Negative amortization is a situation where your mortgage payment is not enough to cover the interest due. The interest then builds up and your total principal owing increases instead of shrinking. Negative amortization can occur when you have a fixed-payment variable-rate mortgage and prime rate rises. When considering a variable product you should always consider one that […]