What's your 5-year rate?

The first question I usually get when a potential client calls me is, what is your mortgage rate for five years? 

It makes me wonder if that is the only thing that's important when you are shopping for a mortgage. 

I was speaking with a financial planner colleague and he told me he almost never has clients call him and ask the price of a certain mutual fund or stock. 

We began to talk and realized that mortgage brokers by advertising "best rates" and "lower rates than your bank" have trained their clients to ask for the best rate. 

Is rate really all that important when you are talking about the largest debt you probably will ever have?

When clients choose a financial planner, they usually ask questions about the planner's experience, outlook on the market, past record with clients' portfolios, but certainly not rate or price. 

Mortgage clients ought to be doing the same thing. 

With all the current news about interest rates rising to further cool off the real estate market, it's important my clients have a plan to help them prepare for the payment shock in two to five years when interest rates may be up as much as two per cent. 

When was the last time your bank sent you an email advising you that their mortgage rates were going up and that you should increase your payment to keep your risk down? 

When was the last time your mortgage company called and told you over the last two to three years that your rate was higher than the current rate and perhaps you should investigate refinancing at a lower rate to save you money?

If you would like to have these strategies and more for your mortgage, then I suggest you give us a call at 250-862-1806. 

If you have an existing mortgage you can also sign up on our email list so that you will be notified when your lender increases their rates. 

Remember you should have someone who wants to help you manage your mortgage just like a financial planner manages your investment.


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About the Author

Laurie Baird and Tracy Head are mortgage brokers with Verico Complete Mortgage Services. Together they have over 45 years of experience in the mortgage industry.

As mortgage brokers, Laurie and Tracy spend time getting to know the people they work with and help them understand the mortgage process. They support their clients before, during, and after a home purchase.

Laurie and Tracy are able to offer their clients advice and options. With access to over 40 different lenders, Laurie and Tracy are able to match the needs of their clients with the right mortgage package. They work closely with their clients to find the right fit, and are around to provide support for years down the road!

Contact them at 250-862-1806 or visit:

Visit Laurie's blog at: https://www.okanaganmortgages.com/blog

The views expressed are strictly those of the author and not necessarily those of Castanet. Castanet does not warrant the contents.

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