The Truth About Flashy Rate Specials
In these times of creative marketing campaigns and low interest rates, many of the Big Banks are offering fixed rate specials of 2.99% for a 5-year term.
As with anything that seems too good to be true, there is often the ‘fine print’ that is well worth investigating.
In this case, the fine print can end up handcuffing you over the course of the 5 year term.
The truth about these “specials” is that they are usually very restricted products with limited features. While these features might not seem so constricting up front, remember that 5 years is a considerable chunk of time, and that people’s life circumstances sometimes change very dramatically.
Because of this, you want a mortgage solution that not only fits you upfront, but that also offers you options down the road should you need them.
These are good examples of common restrictions behind the current “specials” that some banks are offering:
- A maximum amortization of 25 years instead of 30. This 5 year difference can sometimes make the difference between you qualifying or not, or, you having monthly mortgage payments that don’t make you house-poor.
- Limits on your ability to refinance down the road with a different Lender for a more competitive rate. If rates drop considerably at some point during your 5-year term, you want to have the option of refinancing to save yourself money each month. This will limit you in doing so.
- Exposure to a higher payout penalty. This can sometimes be thousands of dollars higher than what you`d normally pay in a mortgage without restrictions.
- No major changes to your mortgage are allowed unless you sell your property. This alone handcuffs people who love their principal residence and don`t wish to move, or, who have lucrative rental properties and want to hold on to them long-term for maximum gains.
Here`s another truth: As a Mortgage Broker who is dedicated to serving her clients, I have access to many other full-featured options out there at rates that are just competitive. These mortgage solutions will offer you a good rate and flexible features that allow for you to make changes over time that match your life.
As a Mortgage Broker, my pure focus every day is to find good mortgage solutions for my clients. While your bank has its own policies, internal pushes to sell thousands of other non-mortgage related financial products and a limited number of mortgage products, I have access to more than 40 Lenders offering 100+ mortgage products.
Each day, I get updates from Lenders across Canada who offer a myriad of products that will fit your specific situation. I scour these to find a good mortgage that will fit your specific situation.
The best part is that I`m not loyal to any one of these Lenders…I`m loyal to you.
That`s what truly allows me to give you exceptional service, help you understand the fine print when a rate special seems too good to be true, and coordinate a mortgage for you that fits with your life, now and down the road.
For a *free* mortgage consultation, or just the answer to a question you`ve always been curious about, please feel comfortable contacting me.
Ms. Anat Stapleton