Understand Discounted Rates and Understand the Possible Penalties. The truth about the Best Mortgage Rates in BC.
If it’s too good to be true it often is… Sometimes you’ll see a you found a deeply discounted rate advertised in BC. Is the broker local in Victoria or in another city and can you go and meet with them to discuss the critical details? Is it a national bank offer or and can they clearly explain the penalty structure to you? We pride ourselves on offering the best rates, on mortgage products that are client-friendly, meaning flexible and low-fee. Our clients often hear of national ‘rate sites’ promoting rates that are ultimately not available, and people have wasted a lot of time and created more stress than is required, at an already stressful time.
A large number of Canadians are forced to terminate their mortgage contracts early due to an unforeseen professional or personal issue . The estimates vary but certainly more than 30% of Canadian borrowers will have to end their contracts early and if you are locked into a ‘great rate’ you might find out why that rate was so great. The result could be pre-payment penalties as high as $40,000 or more which can decimate your hard-earned net worth and capital position.
When considering a deeply discounted 5-year rate, keep in mind that cheapest mortgage rate isn’t always best choice. Strangely, we know that’s true when we’re shopping for anything else, but we still tend to believe that lowest rate is the one and only factor in choosing a mortgage. Unfortunately, that low-rate mortgage could actually cost you more in the long run.
A cut-rate mortgage could have you locked in to a very rigid contract filled with financial “trip lines” that could work against you down the road. Sometimes those cut-rate mortgages come with higher fees, penalties, or restrictive terms, which could prove more costly over the long term than a slightly higher-rate mortgage with flexible terms.
Talk to us first. You can make an appointment to come in and sit down with for a no cost, no obligation discussion. We’ll help you find the right mortgage with the rate, flexibility, and freedom you need to be a happy homeowner.
We look forward to discussing all your options soon.
Contact us today at 250-483-5558