Mortgage planning for next steps in life

While working with my clients, I take the time to understand not only what they are hoping to accomplish right now but also where they see themselves headed in the future.

Why is that important? Sometimes clients have a short-term goal of getting into the housing market and planning to upgrade within the next few years. Sometimes they are relocating but are nearing retirement so are looking to downsize soon. Others may be in it for the long haul—starting their families and buying a home they intend to raise their children in.

But, the best laid plans can often go awry.

The mortgage rate is not always the deciding factor. When I am choosing a lender for my clients, knowing what my clients’ longer-term plans are may steer me one direction or another.

For example, if I know my clients may potentially make a move and upsize in the next few years I will most likely choose a lender that has favourable policies around porting their mortgages and that offers a blend and extend option.

If my clients express an intention to downsize in the next few years, and potentially into an age-restricted complex, I will likely choose a different lender.

If my clients feel they will stay put for the long haul, I may well look at yet a different lender.

Why might I look at when it comes to one lender versus another? As an example, certain lenders will not offer mortgages in age-restricted complexes.

Some have very restrictive policies around how they offer clients the option to port their mortgage from one home to the next.

Lenders can have different geographical lending areas, so I also consider that if a client tells me they may want to move to a more rural area.

Some lenders are far more aggressive at renewal time with respect to what they will offer their clients in terms of a rate for their next term.

I also consider the client service provided by lenders after the mortgage has been advanced. There are a few lenders I will not place clients with because of the experience I, or clients, have had with them in the past. Those particular lenders often have the lowest rates but in this case you get what you pay for.

In my earlier days as a mortgage broker, I used the tagline “creating clients for life”. That was, of course, interpreted by some as meaning clients would have mortgages for life. But that was not what I meant.

The intent behind the phrase was that I aim to build relationships with my clients to make future moves and changes to their mortgages much smoother for them.

Finally, a quick reminder. If you haven’t already claimed your annual property tax Home Owner Grant, do it sooner rather than later.

And, Happy Canada Day all.

This article is written by or on behalf of an outsourced columnist and does not necessarily reflect the views of Castanet.