As Canadian consumers become more educated and savvy with mortgage options the spotlight focuses once again on penalties and the true cost of breaking a mortgage. Here is a great article that discusses this very thing and the way you can avoid penalty shock.
Comparing bank and non-bank lenders, 9 times out of 10 the penalty will always be higher if you choose a bank. The reason for this is their “posted” rates which are much higher than best rates and are used to calculate penalties. Don’t be fooled by a rock bottom rate at a bank as the same rock bottom rate at a non-bank lender could end up saving you thousands should you have to break your mortgage mid term. There are many unforeseen reasons that homeowners would break their mortgages including; marital separation, illness, job loss, or a growing family. You may also want to refinance at some point to utilize equity in your property for debt consolidation, renovations or the purchase of a second home or rental property.
To read the full article please click here
Kim Gibbons, ” Your Mortgage Superhero ®”
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