Like anything else, before you get a mortgage you should "shop around". A Mortgage Broker is a great option to help you when purchasing a property. They can arrange mortgages through Banks, Credit Unions and have access to products that are not available through "regular" financial Institutions. Most people when looking for a mortgage only ask about the rate. This can be a fault of our industry. How many times do you see brokers advertising the "best" rates? There are many other factors to consider, such as Prepayment Options (ability to accelerate the pay back on the principal), Penalties (if you wish to payout the mortgage), Assumability (if you sell - can someone take over your mortgage?) and Portability (can you take your mortgage with you if you move?).
But what if you all ready have a mortgage and you are wanting to renew or refinance your existing mortgage. What should you do? Again, you should "shop around". But first, start with your existing lender to see what rate and terms they are able to offer. Don't just sign the renewal! After that, contact a mortgage broker and see what products they have to match your needs and goals.
Again, rate is not the most important factor. Suppose you were shopping for a Financial Planner to manage $50,000. Would you ask the rate of their mutual funds? Probably not. You would likely interview them, to see if you feel a sense of trust. You would also decide if you like their strategy for managing your money. Why is it, we don't apply the same principle with the largest debt we have? Shouldn't we be looking for someone to help us manage our debt rather than just the best rate?
We will help minimize your payment shock at maturity with our Inflationary Hedge Strategy - saving you thousands of dollars. We have a couple different strategies we are presently employing with our clients. It is not just about the best rate. If you are looking for a Debt Management Strategy, please contact us at (250) 862-1806. If you have a mortgage and would like to sample our service please click on the link below.
This article is written by or on behalf of an outsourced columnist and does not necessarily reflect the views of Castanet.