Reason #6: Options, Options, Options.
A good mortgage broker has access to a variety of lenders and products to suit your needs. Everyone wants the best rate, but a good mortgage broker will help you choose your lender and mortgage product based on other factors as well as rates.
A few of the other factors to consider, for example:
Term: Fixed or variable rates and open/closed terms: There are advantages and disadvantages to be discussed and considered.
Portability: Do you plan on moving to a new home within the term of the mortgage?
Pre-Payment Privileges: Flexibility to make additional lump sum payments against the principle and/or increase your monthly payment amount throughout the term.
Payout Penalties and IRD Calculations: Understanding how your penalty will be calculated if you break the mortgage before the end of the term.
Interest Compounding: Semi-Annual versus Monthly.
Structuring Multiple Components: Would you like to attach a home equity credit line to your mortgage? Perhaps you may wish to diversify your home investment by setting up your mortgage as part variable and part fixed rate.
Front or Back End Insurability: This has become a very complicated factor with the most recent wave of government rule changes. Insurability can impact many things, including your rate and the option to transfer your mortgage down the road.
Special Insurer Programs: In the event of a purchase, there are various Insurer programs that may be available to you. The flex-down to help with down payment, or a purchase-plus-improvements product to help with renovations might be right for you. The CMHC Green program is becoming more and more popular for those making environmentally friendly upgrades.
It is important to know all of the options before you decide on a mortgage product. A trusted mortgage broker will guide you through this, and provide you with a variety of solutions to suit your short and long term goals.
As always, let me know if you have any questions or concerns.