Mortgage brokers know that a great rate and a great mortgage are not always synonymous. Many clients have tunnel vision when it comes to interest rate but it is only one component.
How do we as mortgage professionals convince our clients of this when rate is the only thing they can easily compare? How do we explain that avoiding potential costs like high mortgage penalties, refinance restrictions etc., often justifies paying more up front?
It is important for a consumer to ask their mortgage broker or specialist about the differences between a collateral change and a standard charge and the impact a collateral charge may have on their ability to shop for the best rate at maturity. Also it is critical to understand the difference between the penalty charges by the Big 5 Banks versus the penalties of some of the other lenders with the same interest rates.
Most mortgage consumers do not realize that 63% of mortgages are broken before maturity and sometimes the differences in penalties can be over $10,000. Some of the low interest, rock bottom mortgages are usually part of a no frills product and can cost thousands of dollars more in the future.
Some of the other components that are not always offered in a low rate mortgage are flexible prepayment options which will save thousands of dollars in interest costs over the life of the mortgage. Add to this portability, assumability and the ability to refinance which are important considerations.
Sometimes saving money involves much more than the best rate. It is essential to understand the trade-offs associated with some of the mortgage rates advertised. This is why using an Accredited Mortgage Professional (AMP) is so important.
Please feel free to call me at 250-862-1806 or email me at [email protected] to set up your FREE mortgage rate consultation.
To keep your house from being haunted with potential insurance woes, Wayne Ross, an insurance and claims expert for Aviva Canada, offers some Halloween preparation tips for preventing fires and other insurance claims:
• Practice fire safety: When setting up spooky electrical decorations and lighting, ensure that electrical outlets are not overloaded. Consider battery or solar powered Jack-o’-lanterns.
• Make sure your walkways are safe: Although darkness may set the Halloween mood, keep walkways well lit and obstruction-free to reduce the risk of injury and allow many goblins to walk through simultaneously.
• Check your insurance coverage: While homeowner policies generally will cover you and your property on Halloween, it is a good idea to contact your insurance broker to ensure that you have the right amount of coverage —especially with hundreds of small visitors to your home.
“It is the responsibility of homeowners to make sure their property is safe for visitors during the Halloween festivities,” states Ross. “By taking some precautions, homeowners can join in the celebrations and enjoy a safe night of fun with their families.”
While you’re planning for your Halloween haunt, talk your insurance broker or insurer to determine what you can do to keep trick or treating safe. More detailed information is available from your insurance broker or at AvivaCanada.com.
If you have any questions regarding home insurance and would like a referral to a broker or have question about mortgages please call 250 862 1806 or email me at [email protected].
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