The Lowest Mortgage Rates

In our office we get several calls a week of people asking: "what's the lowest mortgage rate you offer?". This is always such a tough question to answer because it depends on the type of mortgage the person is looking for (fixed, variable, rental property, HELOC), the amount of down payment (over 20% or under 20%), and the person's credit. Beyond that we think this is the wrong question to ask!

When it comes to getting a mortgage there are things that are much more important than 0.05%!

What should you be looking for instead?

A Fully Featured Mortgage

Many online mortgage lenders will offer a no-frills mortgage which is a low rate mortgage that has limitations. These can include: no porting, high penalties if you break the mortgage, teaser rates that increase after 6 months, and limited pre-payment options. When first getting the mortgage all of these can seem like no big deal, but if after 2 years you get a job transfer and have to pay $10,000+ in fees to break your mortgage the regret might kick in. A fully featured mortgage instead gives you a mortgage that can work for you now, and in the future!

Porting Options

If you know that you want to move within the next 5 years chasing the lowest rate available might not be the best option as not all mortgages can port everywhere. For example, if you are getting a mortgage in Alberta and want to move to British Columbia in the next 5 years and ATB has the lowest mortgage rate, this might not make sense as ATB only lends on properties in Alberta. Similarly if you are hoping to move from the city to an acreage not all lenders will be okay with that. The inability to port the mortgage could end up costing you more than you saved by choosing the lowest rate mortgage.

Low Penalties

Not all mortgages will have the same penalty for breaking the mortgage. As mentioned earlier, some no-frill mortgages have extremely high penalties for breaking the mortgage (could be 1% of mortgage amount) whereas others have lower penalties. If you know you will be breaking your mortgage before the term is up it could save tens of thousands (more than you saved by choosing the lowest mortgage rate) to go with a monoline lender or to choose a variable product. 

So what is the question to ask?... "What is the best mortgage product for me?"

Gert Martens Mortgage Team has 15+ years of experience with mortgage lending. We want the RIGHT mortgage for you at the lowest rate available. We'll ask questions about you and recommend mortgage options that fit you both now and in the future. Ready to get YOUR best mortgage option? Contact Grande Prairie Mortgage Broker's Gert Martens Mortgage Team today for your Alberta Mortgage or BC Mortgage!