It is more important now than ever to shop around and compare different mortgages. An independent mortgage broker specializes in knowing all of the products that each of the dozens of lenders have. It is their job to compare mortgage products and obtain the right one for each of their clients.

These are some important factors to consider before obtaining a mortgage. Some people just call up their banks and ask for the best rate, which is important but rate is not the most important factor in obtaining the right mortgage for you.

What type of mortgage is best for my current situation?
Fixed, Variable or Mixed? Do I want an open or closed mortgage?
Your mortgage broker can advise you on which path to take based on your current financial situation and your individual tolerance to risk and fluctuation in rate. Recently the 50/50 mortgage has increased in popularity. This is where a portion of your payment is fixed and a portion of your payment is variable. Speak to your mortgage broker about the pros and cons to this type of mortgage to see if its right for you.

Next you must consider what mortgage features and options are important to you, not only today but in the future as well.
These include:
a short or long mortgage term and a short or long amortization period.

Frequency of mortgage payments
Ask your mortgage broker what the prepayment options are. Can you increase your mortgage payments at anytime? Can you change the frequency at any time? Some people might receive a tax refund that they want to put towards the mortgage, find out if you are able to do that. You might get that raise that you have been hoping for or you might land the job you wanted with higher pay and be able to make a larger monthly mortgage payment.

Assumability:
Is the mortgage assumable? This is important should you choose to sell your home. Can the buyer assume your current mortgage? This may prove to be your best asset when selling your home if you have a great rate and a great mortgage product.

Portability:
If you sell your home and purchase a new home, can you bring your current mortgage to the new home? This might help you when the time arises.

Fees Involved:
What types of fees are involved in setting up, discharging or renewing my mortgage? Also, ask how they are calculated. Every lender is different and may have different methods of calculating things.

Penalty Charges:
What penalty charges may apply should I choose to break my mortgage early? This could be an important factor should you want to refinance your mortgage before your term is up. Lenders have different ways of calculating penalties as well, so at least find out so that you are prepared for the potential penalty charge, should the need arise.

With so much to consider when obtaining a mortgage, it is no wonder that more and more Canadians are turning to independent mortgage brokers to assist them in obtaining a mortgage. All of these factors are important to give you the best in flexibility and to give you all of the options possible. Making the wrong decision just to get the lowest rate could cost you thousands of dollars down the road. Make sure you take the time to compare numerous options and have your mortgage broker educate you on all of these factors to get you the right mortgage product for years to come! Contact me today to assist you in reaching your financial goals.

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