It's NOT always about the lowest rate.

First off this blog is in no way being written to bash any lender or bank out there. Every lender serves their purpose and are the right fit for someone. This blog is to make you, the consumer, aware that it's not always about the rate you see on paper. It's about the flexibility and options that you need in a mortgage. I like to say to people, "do you want the best rate or the best product". With the options of a mortgage broker you can get that best product!

Here's just a couple of many examples:

Yesterday I opened up my local paper and saw Prospera's "myStyle' low rate fixed mortgage product that offers free legals, appraisal and inspection or $1,500 cash back. Sounds great right? In theory it is great, however, the small print that comes along with this mortgage is a bit alarming. The biggest thing that stands out to me is the 12 month interest penalty...yes 12 months. That's 9 months more than standard. There is only a 10% increase in payments per year and no lump sums as well. http://bit.ly/e5ywbA All this to get their 'best rate'. That $1,500 doesn't sound very good anymore.

On the variable product they do something as well that some lenders do that is NOT GOOD. They don't allow your payment to increase when prime goes up. What essentially happens, especially now that we're in an increasing rate market, is that more of your payment goes to interest and the principal portion diminishes. This leads to negative amortization. I've seen a 25 year amortization jump to almost 40 years before. The person was quite upset when I explained to them what the bank was doing.

There's also the Vancity product that is quite low on the fixed rate. This isn't offered unless you take 2 other products with them i.e., RSP's, insurance etc. If you're not a member, prepare to pretty much move everything to them to get this rate.

As mortgage brokers we know the lenders that not only have pretty darn good rates, but they also have all the features that you have come to expect. You can't always find this with one particular bank or lenders' products. Remember it's not always about rate. Planning and working a mortgage around your needs is what's important.

Make sure that you at least give a mortgage broker a shot to see if they can help you make the right decision. You owe it in yourself to do so. We don't charge for a consultation and unless you're obtaining private money (seconds etc) we do NOT charge a fee to help out. The lender/bank compensates us.

Again, know that I'm in no mean going after any one lender or banks products. This blog is solely to make you aware to read the fine print, it could mean a lot.