Why the lowest rate could be a costly mistake.

​“I want the lowest rate” are usually the first words I hear when meeting a new client. And I get it, we all want to save money, but focusing on the “lowest rate” can be a costly mistake if you don't know what you're signing up for. 
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On average Canadians break or refinance their mortgage term every 3.7 years, meaning that if you sign up for a 5-year fixed term and have to break your term or refinance, you could be in for a hefty penalty. Selecting a term with a slightly higher interest rate but more flexibility could end up saving you a lot of money.

When deciding on a term and a lender, it is important to understand that there are several factors that affect how break penalties are calculated. First off, there are different penalties for fixed-rate terms and variable rate terms. Secondly, each lender decides how they calculate break penalties and I will review those with you prior to making a decision. Third, we need to discuss your plans and goals. At the end of the day, you need to determine what is most important to you and your family; flexibility or the lowest rate. Do you want the lowest rate, or do you want to pay less?

At the end of the day, I want you to know that there is much more to discuss than just rate. And don't worry, if you are rate conscious, I will always have the lowest rates on the market.