Are you looking at buying a new home or refinancing your current home in the Kamloops Area? This list of important items are a few things you should make sure you know before you finalize your next mortgage. 

Can I accelerate my payments?

Find out whether you can make your payments weekly or bi-weekly rather than monthly. This alone can take years off of your Mortgage and can save you thousands of dollars in interest.

What Pre-Payment privileges are available to me?

Make sure you ask what type of pre-payment privileges you are entitled to. Being able to make lump sum payments every year can be a big plus, if you have some extra money and apply it to your mortgage you can shave years off of your amortization, and save thousands in interest, most mortgages will allow you to put 15 - 20% of your original balance towards the principle every year. Find out when you are able to apply these payments, some lenders allow you to make them at any time throughout the year, others allow you to only do it on the anniversary date. You may also be able to either increase your payments or double up on your payments without penalty so make sure you know all of these options.

Is my Mortgage portable?

Having a mortgage that is portable can be a very good feature that some people might not think of checking. Portable means that you can transfer your mortgage to another property, so in the middle of your term if you were to sell your house and move you can transfer your existing mortgage term and rate to your new property.

Is my Mortgage assumable?

An assumable mortgage means that someone else can take over your existing mortgage rate and term that is left. This can be a good selling feature if you are selling your property and not getting another mortgage right away, if the rates have gone up you can advertise that your mortgage can be assumed at a lower rate.

What Penalties Could I Face?

Make sure you ask what will happen if you pay off your mortgage early, refinance or sell your home before your mortgage matures. You may be facing either a three month interest penatly or an Interest Rate Differential (IRD), this is the difference in the interest rates available now and the interest rate that you originally signed up at, you could potentially be looking at thousands of dollars in penalty charges.

What is my Risk Tolerance

When looking for a mortgage there are so many different terms and rates to choose from, make sure you find out the pros and cons between a fixed rate or variable rate, or maybe you are interested in going for a Hybrid mortgage which is half fixed and half variable. Ask yourself if you can handle rising rates which can increase your payment and or amortization, depending on the type of mortgage that you go for. Also if you decide to go for a variable rate mortgage, make sure you find out your options if you decide to later lock in to a fixed rate.

These are some of the important items that you should discuss and know before signing your mortgage commitment letter. When you see a mortgage professional like Stewart Mortgage Corp. we are working for you, not the bank so it is our goal to make sure you fully understand all of the terms and conditions, and that we find the best mortgage for you, sometimes the best rate is not always the best mortgage, and knowing some of these items before hand can potentially save you thousands of dollars in the long run. Contact us today for your free no obligation consultation today.

250.572.0762 - jamie@stewartmortgage.ca