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.


Comments are pre-moderated to ensure they meet our guidelines. Approval times will vary. Keep it civil, and stay on topic. If you see an inappropriate comment, please use the ‘flag’ feature. Comments are the opinions of the comment writer, not of Castanet. Comments remain open for one day after a story is published and are closed on weekends. Visit Castanet’s Forums to start or join a discussion about this story.

More The Mortgage Gal articles

About the Author

Tracy Head and Laurie Baird help busy families find mortgage solutions. Together they have more than 45 years of experience in the mortgage industry.

With today’s increasingly complicated mortgage rules, Tracy and Laurie spend time getting to know the people they work with and help them to better understand the mortgage process. They support their clients before, during, and after their mortgage is in place.

Tracy and Laurie work closely with their clients, offering advice and options. With access to more than 40 different lenders, Tracy and Laurie are able to assist with residential, commercial, and reverse mortgages in order 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 http://www.okanaganmortgages.com

Visit their 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.

Previous Stories