Transcribed from the Michal Sluka / Michael Huber YouTube Video – see below for written, condensed version.
1) Mortgage Options / Best Interest Rate
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Don’t have to go with your old skool bank
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Banks, Credit Unions, Monoline Mortgage Companies
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Each lender has different options so we can get you the best mortgage for your situation
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Banks, Credit Unions, Monoline mortgage companies, all have comparable rates
2) Best Terms and Conditions
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Portability
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Pre-payment penalties – 65% of Canadians get caught and have to pay THOUSANDS to their lender if they pre-pay their mortgage.
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Pre-payment penalties can be thousands of dollars. Upfront strategizing with your mortgage broker can save you from paying these massive penalties.
3) 5-year Plan
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Before locking into a typical 5-year mortgage term, think about what your plan is. Do you anticipate a job transfer? Do you plan to move with your spouse to a new home in the near term? Etc.
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If yes, perhaps consider a variable rate. Maybe a 2 or 3-year fixed rate would better serve you and save you from paying massive penalties.
4) Fixed vs. Variable
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66% choose fixed rate mortgage – you know the exact monthly payment and this never fluctuates
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34% choose a variable option – typically rate is lower, lower pre-payment penalty, over past 10 years variable rate has saved borrowers thousands
5) Make sure you have options to pay off your mortgage FAST
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Accelerated Bi-weekly payment option – pays off mortgage 2.93 years faster
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Monthly payment increase allowance – typically 20% payment increase permitted – 20% goes directly against principal – pays off mortgage 5 years sooner
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Lump Sum payments – annual amounts available – typically 20% of original mortgage amount