Are mortgage terms more important than rate?
Why are the terms more important than rate when it comes to a mortgage?
Simple. Seven out of 10 Canadians break their mortgages prior to the renewal
date.
Taking the wrong mortgage when you could have qualified for a better one- is a
costly mistake.
The biggest mistake anyone can make is they don’t think they need to make a
change, or they’re the three-in 10 that won’t break a mortgage.
For those people I give you a short list of potential reasons why you might need
to get out of a mortgage early.
1. Sale and purchase – maybe you get an offer you can’t refuse, either work or
real estate related, maybe the zoning has changed, your neighbours or strata are
unmanageable or maybe you want to grow your family
2. Take Equity out – get renovations done, help family members or buy another
investment, pay CRA, or assessments on property
3. Pay off debt – maybe you are like the over 60% of Canadians living paycheque
to paycheque and paying over 5% on credit cards or lines of credit. There are
much more savings in interest and cash flow for you utilizing your equity.
4. Relationship changes – moving in together, divorce is at a 50% rate these
days, kids (needing more space or need to move in together).
5. Health or life challenges – huge illness, unemployment or death of someone
on title can be a burden enough.
6. Removing someone from title – a co-signer (3/10 homebuyers get help from a
family member) or an ex-spouse.
7. Save money with a lower rate – the market is always changing. It may make
sense to break early and go with a different term as the market changes.
8. Pay it off – maybe you won the lottery or got an inheritance.
Some of the above is not avoidable, but the one thing you totally can control is
who you align yourself with when shopping for a mortgage. A Dominion Lending
Centres mortgage broker will always be looking at all the factors involved in a
mortgage without bias to help you make an educated decision on what best suits
you.
Call Shoren Konstantin directly at: 416-218-0512. You will be pleasantly surprised!