Transcribed from the Michal Sluka / Michael Huber YouTube Video – see below for written, condensed version.

1) Mortgage Options / Best Interest Rate

  • Don’t have to go with your old skool bank

  • Banks, Credit Unions, Monoline Mortgage Companies

  • Each lender has different options so we can get you the best mortgage for your situation

  • Banks, Credit Unions, Monoline mortgage companies, all have comparable rates

2) Best Terms and Conditions

  • Portability

  • Pre-payment penalties – 65% of Canadians get caught and have to pay THOUSANDS to their lender if they pre-pay their mortgage.

  • 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

  • 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.

  • 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

  • 66% choose fixed rate mortgage – you know the exact monthly payment and this never fluctuates

  • 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

  • Accelerated Bi-weekly payment option – pays off mortgage 2.93 years faster

  • Monthly payment increase allowance – typically 20% payment increase permitted – 20% goes directly against principal – pays off mortgage 5 years sooner

  • Lump Sum payments – annual amounts available – typically 20% of original mortgage amount

One of my hobbies is blogging about mortgages, debt and government policy.  During the day I’m a MORTGAGE BROKER!

Check out the Huber Mortgage Home Buyers Guide HERE



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