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Many homebuyers begin the mortgage process with one thing in mind, finding the lowest rate. Although that is a very important factor, there are several more that should be weighted just as heavily when choosing your mortgage. Some other key factors to consider are:

1) Payment Privileges

We all dream of paying off our mortgage early and putting those extra funds toward our retirement, travel, and much more. However, a large portion of mortgages are "closed mortgages", meaning there is a limitation on how much you can repay during your term. This means you may not be able to repay the entire outstanding balance during the term of your mortgage without incurring some penalties and fees. It is important to take this into consideration when planning for the future.

2) Mortgage Penalties

Most people never plan to break their mortgage, however, life can change very quickly and sometimes, life happens. If you ever have to break your mortgage agreement due to job loss, divorce/separation, job relocation, etc, its important to be informed about the penalties that will be associated. Finding a mortgage with lower penalties is an important step when creating a "plan B" for the future.

3) Portability

A portable mortgage means you can bring your mortgage with you if you decide to move. For example, if you're purchasing a larger home and you need a bigger mortgage, you can combine the mortgage rate on your current home with your new home. Being able to port your mortgage is a great option is you ever plan to move. You won't have to pay out thousands in mortgage penalties.

When you are shopping for a mortgage, it is important to ask your bank or lender these questions. Alternatively, you can work with a mortgage broker, like myself, who will sit down with you to understand your current situation, goals, and plans for the future and then shop around with all the various lenders for you. I will ensure you get to see all the best options available in the marketplace to you, even the ones some lenders won't tell you about.

As a TMG mortgage broker, we have access to over 50 mortgage lenders which means you can be sure we're presenting you with competitive mortgage rates and options that are tailored to your specific needs.

To learn more about the various mortgage options I can offer as a Red Deer Mortgage Broker, you can book an appointment with me at 403-391-2053 or email nicki@mortgagegrp.com. You can also find some helpful videos about a number of other mortgage related topics by visiting my YouTube channel.