Discuss a list of items you should ask about your broker or bank when negotiating your next mortgage:
– How much can I prepay per year with no penalty?
– When can I make these payments?
– How much can I increase my payments per year?
– What is the penalty to break my mortgage? (most are 3 month penalty, with fixed terms having a potential Interest Rate Differential Penalty)
– How is my IRD penalty calculated? (major banks have a really nasty calculation for their penalties that could cost you 2.5 times more than a “non-bank” lender)
– Am I guaranteed your best rate when I lock in? (most major banks don’t offer a guarantee)
– 5 more questions (subscribe to Factsbyemail.com)
It isn’t always about rate – it’s about value!
A good broker will ask what your goals and intentions are to ensure your mortgage is properly set up for your short term goals but also for your long term goals.