To ensure you get the best mortgage rates and options for your needs, here are the top five questions to ask your Ottawa mortgage broker.
This is important to know especially for those who would like more flexibility in the future. Also, for those who want to be able to easily shop around other banks and lenders at renewal for a more competitive rate. A collateral mortgage is a non-transferable mortgage. This means moving lenders at renewal for a better rate can come with large costs and extra steps. Some banks only offer clients collateral mortgages. TD Canada Trust is one of these lenders for example. Contact me to find out what banks have collateral mortgages and which ones do not.
Learn more: Collateral mortgages
With dozens of banks and lenders to choose from you can shop rates at many different types of lenders however like many purchases you’ll make, you can get what you pay for. Some low rate lenders have heavy restrictions and increased penalties on their mortgages, such as a penalty of 3% of your mortgage balance. An Ottawa mortgage broker can walk you through the pros and cons of different lenders to assure you get the best options for your needs and the best rates on the mortgage with your desired options.
Learn more: Compare today's best mortgage rates
If you feel you may move to a bigger home within the term of your mortgage, such as a five year fixed term, then having the option to port and increase the mortgage is important. Some mortgages are non-portable and others are portable but cannot be increased.
Learn more: Porting a mortgage
Learn more: 5 year fixed rate mortgage
Some lenders have restrictions on prepayment privileges and others just offer less options in general. Some major banks offer clients the ability to pay off an extra 10% of their mortgage a year and others offer 20% or more.
Learn more: Mortgage prepayment
The industry standard penalty to pay out a fixed rate mortgage is the greater of 3 months interest or the interest rate differential. Unfortunately, many lenders including major banks, will use a posted rate when determining your penalty and not discounted rates. This can create a very large penalty. If looking for more flexibility, ask about mortgage options with more client-focused penalty calculations.
Learn more: Interest rate differential (IRD) penalty
Learn more: The most common reasons people break a mortgage
Contact an Ottawa mortgage broker today to learn more.
Andrew Thake is a seasoned mortgage broker with over 15 years of industry experience. He’s assisted more than 2,200 clients in finding their ideal mortgage solutions. Recognized for his excellence, Andrew has received high honours and awards, including the National Rookie of the Year from TD Canada Trust and recognition as a Top 10 Ottawa Mortgage Broker in 2023. He has also been inducted into the Hall of Fame at Dominion Lending Centres and has consistently received their Platinum Award during his tenure as a mortgage broker.
Andrew’s dedication lies in serving his clients and prioritizing their needs with an empathetic approach. Throughout the application process, he provides tailored, informed, and efficient services to ensure the best mortgage solutions for his client’s unique circumstances. The best part of Andrew’s job is when he gets to see the joy on his clients’ faces following their mortgage approval.