You cannot compare apples to apples when it comes to mortgage lending. There are a large variety of mortgage products to choose from in today’s market. You need to know exactly what mortgage features they include and what you are willing to pay for in rate.
To put this in perspective, would you walk into a car dealership and ask for the cheapest car? The simplest way for a dealership to find you the cheapest car would be by removing options – sometimes sacrificing quality. You have to pay more for extras like warranty, navigation and leather seats.
Lenders determine rates much the same way. Options are taken away to offer a lower interest rate on your mortgage. You should be aware of what features are available when getting a mortgage. You can then determine what you need to have included in your mortgage product to fulfill your present and future needs.
There are many different mortgage features to consider. Most standard mortgage products allow you to port your mortgage to another property and avoid penalty charges, make lump sum payments into a mortgage cash account and may even let you skip a payment if you need to. These are just a few features to consider.
Once you start looking at lower interest rates, these mortgage features can decrease and even disappear. Monoline lenders can save on additional business costs by hiring companies overseas to operate their call centers. In addition, they don’t always follow the Canadian Bank Act and can sometimes make their own rules and regulations.
Having direct contact with your mortgage broker throughout the length of the mortgage term can save you hassle and time. A member of The Mortgage Centre We Connect is always available to help you with your mortgage questions and can point you in the right direction with mortgage inquiries.
Choosing a knowledgeable mortgage broker who can educate you on the features and products you will need can save you thousands of dollars. Being a part of The Mortgage Centre gives us access to a number of lenders that provide a wide range of mortgage products and terms to choose from, including major banks, credit unions, mortgage companies and private lenders.