CHOOSING THE RIGHT MORTGAGE

There’s no place like home! "Buying a home" is as much an emotional investment as a financial one. The right mortgage should fit your life- not the other way around.
How do you decide which mortgage is best for you?


Am I planning to live in this house for a long time or do I hope to upgrade in a few years?
If you are planning on living in this home for many years to come, then you might consider a long-term mortgage to avoid rate fluctuations and the cost of renewing your mortgage at regular intervals.

What payments can I afford?
Do I have room in my budget to allow for increases in my mortgage payments if rates rise drastically – even if only for a short term? If yes, then you might consider a short-term or variable rate mortgage to take advantage of the lower short-term rates. This is not advised for people who will lose sleep over payment fluctuations or will not be able to afford a dramatic increase in their payments.

Are rates on an upswing or downward trend?
Check what the interest rate market is doing currently. If rates appear to be on a downward trend, you might consider a convertible or variable mortgage, which allows you the flexibility of enjoying a short-term rate with the option to lock in if rates increase. If rates are on the rise, you may want to lock in to a long term if the rise looks permanent. If the rise in interest rates appears to be a “glitch” in the market, you might consider riding it out by taking a short-term or convertible mortgage so that you can lock in to a long term when rates come back down.

How do I know if rates are going up or down?
Talk to me - as your mortgage broker I cannot predict the future, but I will be able to give you an informed opinion of current trends.

Are there costs associated with going short-term?
Most lenders charge a renewal fee for clients to renew their mortgage. This ranges from $75 to $250. If a client wants to take advantage of short-term rates by taking consecutive 6 months terms, the fees can add up to a considerable amount.


Prepayment privileges are options, which allow you to make extra payments on your mortgage.
But how much weight should you put on prepayment privileges when deciding which mortgage is best for you?

Is my key concern to have the best interest possible?
If yes, you may not need to consider the prepayment privileges. In fact, some lenders have mortgage products with very limited prepayment privileges, but offset this with a slightly lower rate.

Am I a saver by nature?
Will I be paying my mortgage off as quickly as possible? If yes, then you will want the most flexible prepayment privileges possible.

Contact us today to find the absolute best mortgage solution that meets your individual needs.