- Pre-payment options. Some lenders allow you to put up to 10%, 15% or 20% extra on your mortgage each year. With this option, if you get a bonus at work or come into some extra money, you can make an extra mortgage payment. This could save you big bucks and get your mortgage paid off sooner. Other lenders allow “double-up” or “match-a-payment, miss-a-payment”, allowing you to double the payment … and then potentially “skip” part of the payment in the future if needed.
- Portability. Some lenders offer portable mortgages, meaning that if you buy a new property within your term, you can take your mortgage with you, avoiding any breakage fees. If your next home is larger, the lender should allow blending of your existing mortgage with the new amount of funds required. Or if you decide to take off and move to the Sunny South, Assumable Mortgages allow someone to take your mortgage off your hands. If rates rise in the future (which is likely) your mortgage would be in high demand!
- Property taxes. Some lenders have the option of including your property taxes with your mortgage payment. This is beneficial for budgeting and consolidates two payments into one.
- Online banking options. Good online banking options allow you to easily make changes to your mortgage payment (i.e., change frequency of payment, make a lump sum payment) from the comfort of your home or on-the-go using your smart phone.
- Broker mortgage-management. For your convenience, some lenders allow broker mortgage-management, which means that your mortgage broker can make changes to your mortgage on your behalf. If I am your broker, this means my standards for service can continue for the duration of your mortgage – send me an email or give me a call if you want to change the frequency of your payment or make an extra payment and I can take care of it for you.
- Extra perks. Some lenders offer additional insurance coverage for things that aren’t covered by your home insurance (i.e., furnace, air conditioning, plumbing, electrical). If you’re AC breaks in the middle of the summer, you can get it fixed without the worry of a huge repair bill.
- Rates at renewal. A bank or lender may offer you the best rate now, but are they going to offer you the best rate once you are already their client? Some lenders offer best rates now, but also guarantee best rates at renewal and allow us to represent you as your broker at renewal to ensure this is the case (our preference of course).
The most asked question I get about mortgages is “What is your best rate?” As a Mortgage Broker, I will always get the best rate for the product that best suits my client’s needs. Here are some other things to consider, besides rate.
Amy Coburn, Mortgage Broker
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