Are you getting the best mortgage?

As the year comes to a close in a few weeks, it is a great time to take stock and see how we did during the year.  What were the best things you accomplished?  What do you want to improve?  When we look back, it is also important to think about how we did financially.  Are you paying too much interest on your mortgage or home equity loan?  Can you do better?  Let’s find out.

Reviewing your Mortgage
When you review your mortgage, you need to look at so many factors.  Many people will just look at the rate, and go with the lowest they can get, but there are other factors that need to be looked at.  These include things such as refinancing penalties, mortgage penalties, repayment terms, amortization and more.  The team at One Stop Mortgage Corp can help you evaluate your mortgage and see if you are getting the best deal.

Mortgage Checklist

1.  The RateAre you getting the lowest rate you can according to your particular financial situation? Is this a pre-approved rate, or is it a mortgage renewal rate?  When you are looking into mortgage rates, check with a mortgage broker to see if it fits your needs and is truly the best you can get.  Initial rate offerings are often negotiable, so ask lots of questions and see how you can lower your rate.  A difference of 1% can result in thousands of dollars saved in interest payments over the term of the mortgage.
2. RefinancingCan you refinance without a penalty? What are the terms around refinancing? Can you extend your mortgage without a penalty, or change the terms without it costing you lots of money?  Sometimes if you sell your home, and need to transfer the mortgage to a new property, or if you need to get a home equity line of credit, you need to know the terms of your mortgage.  What happens if rates drop significantly?  Can you blend and extend your mortgage easily?  Being able to get a home equity loan or line of credit is very helpful when you need the money to pay for things like starting a new business, paying for a child’s tuition, or paying off a car loan.  It’s important to ask if this can be done.
3. Variable Rate MortgagesA variable rate mortgage is a great deal when rates are stable or are set to go down.  When the mortgage rates start to climb, will you be able to lock in at a great rate without penalties?  When you convert to a fixed rate, it is very difficult to get the best rate, but you want to make sure you can lock in when rates start climbing.  It is impossible to know how rates are going to move over the long term, and sometimes you may lock in, only to see rates fall later.  If you have a variable rate mortgage, is this the best mortgage for you?
4. AmortizationAmortization is the length of time in which the mortgage is paid.  Most mortgages start at 25 years, but often you can choose your own amortization. If your mortgage is up for renewal in the new year, it is important to know if you can change the amortization to pay off your mortgage faster, or increase it so you can get some financial relief.
5. InsuranceWill you need to insure your mortgage?  Do you have enough equity, and is your credit rating in good shape before you renew your mortgage.  How much insurance are you paying?  Can you get a better deal elsewhere?  Sometimes it makes more sense to cover your mortgage payments with a life insurance or long-term disability insurance policy.  What happens if you get injured at work and can’t pay your mortgage for a couple months?
6. Extra CostsKnowing how much the mortgage will cost over the 5 year term, how many fees are involved and what you can do to save money are all key elements.  Are there processing fees and cancellation fees?  How much are legal fees?  Will the bank cover that?  Are there higher rates if you are self-employed?  When you meet with a mortgage broker, they can go over all the costs, act on your behalf and find ways to save you money.
7. Customer ServiceIf you have a problem with your mortgage, who can you call?  How good is the customer service?  Are you treated with respect or are you just a number?  If you have a good mortgage broker or lender, he/she should contact you occasionally to see how well the mortgage is working and if there are any additional financial services he/she can help you with.
8. AdviceGetting advice about your mortgage is often difficult.  Mortgages are complicated after all and it takes so much expertise to truly understand them.  If you go to a bank, will they give you the best advice?  Is it better to work with a mortgage broker?  Will he or she help you get the right type of mortgage at the best rate?  Working with someone who will explain mortgages, show you all the costs and details up front and help you make a good decision that fits your life will make the whole mortgage experience much more positive.

Get the best mortgage you can
When it comes to mortgages, it sometimes feels like a buyer’s remorse when we sign over the next 5 years of our lives and later discover hidden costs, or penalties.  It is important to learn everything you can and get the best mortgage you can for your particular financial situation.

Working with a mortgage broker can take away a lot of stress, since he or she has access to a wide range of financial services and lenders and has years of experience in finding the best rates according to your needs.  When you have someone to represent your best interests, it takes away a lot of pressure.

As the year comes to a close, take a close look at your finances, with particular attention to your mortgage.

The team at One Stop Mortgage are here to help you get the best deal you can.  Contact them today and see how they can get a mortgage that fits your needs at the best rate you can get.

A simple phone call to 604 874 8988 can change how well you do over the next year.  If your mortgage is up for renewal this year, contact the One Stop Mortgage team and see how they can help!

Simply fill in our 2 minute application form here for Alberta or BC or contact us directly and we can help.

Contact One Stop Mortgage Corp today and get the best mortgage or loan rate for your particular financial situation.  Even if you are self-employed, or have a poor credit score, we can help you. Since 1994 we have helped people get the best mortgages and home equity loans to fit their lives. Contact us today and find out how we can help!

A simple phone call to 1-877-874-8988 or 604-874-8988 or an email to sergio@onestopmortgage.ca can help you find the best loan product to fit your needs, reduce the interest payments and improve your credit rating and credit score.

Even if the bank turns you down, or your credit-rating is not accepted elsewhere, we can help.