Posted: 23 Nov '16

5 Factors That Can Make Or Break Your Mortgage

When in the market for a new mortgage or shopping around for a great deal on a renewal, the terms and conditions can bog you down. Conventional wisdom states that you should never skip out on reading the fine print, and this sentiment could not be more true when it comes to mortgages. To save yourself a lot of grief down the road, the Dominion Mortgage Team with our years of experience has compiled five factors that can break your mortgage if you’re not careful!

The Dominion Mortgages Top Five Fine-Print Conditions to Watch for

1. Mortgage Portability

Mortgage portability allows you to transfer your mortgage from home to home and is important for home buyers who are planning on settling into a starter home that they know they will eventually outgrow. In addition, mortgage portability is incredibly important for homebuyers who relocate frequently due to their job. Remember, not all mortgage options are created equal! Keep an eye out for hidden fees and conditions.

2. Allowable Pre-Payments

When you first sign your mortgage, you’re likely dreaming of making that last payment hopefully sometime in the not-too-distant future. However, what if you find yourself in a financial situation that allows you to aggressively pay down your mortgage quicker than anticipated? While many mortgages have pre-payment options, some only allow annual lump sum payments. If you feel you may be in a situation to pay off your mortgage quicker, considering choosing a plan that allows for additional monthly payments. 

3. Prepayment Fees

Penalties for prepayment vary widely and can come as a big shock if you end your mortgage contract before the set term. Find out as much as you can about any prepayment fees before signing on the dotted line.

4. Is Collateral Attached?

A collateral mortgage may sound like a great option, but it may leave you short on allowable funds if you choose to upgrade your home or wish to borrow money in the future. Find out what happens if you decide to sell your home or if you wish you to move your mortgage to a new lender.

5. Digital Access

Convenience matters! We live in a constantly changing high-tech world and many people are choosing to do the majority of their banking online. Make sure your mortgage information is accessible online and that your management tools are accessible and tailored to your specific needs.

There you have it. This is the Dominion Mortgage team's top five fine-print conditions you need to watch for before signing your mortgage. To learn about the wide variety of options and excellent mortgage rates we can access for you, contact us today!

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