Posted: 9 Jun '16

Bang For Your Buck Get The Most Out Of Your Mortgage

Beyond trying to get the lowest interest rate possible on a mortgage, most people don't realize there are other benefits you can negotiate and some pitfalls to be wary of. Whether you are a seasoned pro or a looking for a first time home buyer loan, when you are armed with the proper knowledge, you have a far better chance of getting the best bang for your buck on mortgages in Edmonton.

Mortgage Portability

When negotiating your mortgage, you might be so thrilled about your new home that you aren't thinking ahead to possibly buying a different one. Many people move to advance their careers, because they need more space or find their dream home just isn't right after all. If your mortgage isn't portable, you might run into issues re-qualifying or pay high penalties to end the term early.

Most lenders offer some form of portability on Edmonton mortgages, but not all are created equally. Be sure to find out how long you have to port the mortgage to your new property, whether your lender will permit out-of-province moves and what if any fees or penalties there are to pay if you move your mortgage.

Penalties for Pre-Payment

Normally, you wouldn't be penalized for doing something better than expected, but the world of mortgages and penalties in Edmonton is a whole different experience. While many financial institutions and lenders will allow you to pay extra on your mortgage so you can pay it off faster, it is usually limited to a percentage of the principal.

What if you decide to switch mortgage companies or you're diligent and work hard to become mortgage-free sooner? You can expect to pay heavy penalties. Be sure you understand exactly how much you can pre-pay, when you can make the extra paymets and what, if any penalties are involved if you pay out the mortgage sooner than expected.

Access to Extra Credit

If you think you need to borrow extra money and there is enough value in your new home, your financial institution might consider a collateral mortgage. While this option makes it easier and cheaper to borrow additional funds, it has serious limitations. Since the bank owns the collateral until the loan is paid, it may be difficult or expensive to change lenders. Also, it may affect your credit negatively as it looks like you owe more money than you actually do.

Manage Your Way

Be sure to check out the options for managing your mortgage once it's in place. Can you access it from your mobile device when you're on the run? Is it easy to get human interaction if you want it? Can you hop online while still in your pjs enjoying your morning coffee?

Dominion Lending Centers are here to help you get the most bang for your buck with mortgages in Edmonton. Contact us today and our team of professional mortgage brokers will help you with your mortgage needs.

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