Multi-unit Commercial Residential Buy and sell

Never Accept the Banker’s First Offer

There is often a deviation of 2 percentage points between the “official” rate and the negotiated rate (see the table). This is far from being negligible. By paying 3% instead of 5% on a $100,000 mortgage, you will reduce your monthly payments by $100. After five years, you will have saved $10,000 in interest. Over a 25-year amortization period, interest savings will be $32,500. When we know that Quebeckers have little financial flexibility, it is merely unfortunate that not everyone try to save that money.

It Pays off to Contact a Mortgage Broker

Your mortgage broker is aware of the best mortgage rates on the market. They can help you save a lot of money.
  • You do not pay for mortgage brokering services. Mortgage brokers are paid by lenders when a loan is approved.
  • However, you will have to sign a brokerage agreement that stipulates a penalty fee will be charged in the event you cancel the mortgage process…
Mortgage brokers deal with several lenders. They conclude a large volume of transactions, which gives them access to exclusive deals not available on the open market and responding to the needs of their clients. Do not rely on the posted interest rates. The “official” rates displayed by banks mean nothing. In 2013, customers received an average discount of 2.15 points on a five-year mortgage. They paid a 3.06% interest rate instead of 5.21%, according to CAAMP. Beware of Lender trying to Handcuff you Instead of registering your mortgage with a standard charge, many lendersnow registermortgages with a collateral charge (“umbrella mortgages”), which are more difficult to transfer. The Financial Consumer Agency of Canada (FCAC)will warn you: if you want to switch lenders, you will likely need to pay fees to remove the charge from your existing mortgage and register a new mortgage with the new lender. But your collateral charge mortgage is not transferable without paying a notary, which may cost you around $800.In addition, all other debts (line of credit, credit cards, etc.) covered by the “umbrella” will have to be repaid.

Beware of Lender trying to Handcuff you

Instead of registering your mortgage with a standard charge, many lenders now register mortgages with a collateral charge (“umbrella mortgages”), which are more difficult to transfer. The Financial Consumer Agency of Canada (FCAC)will warn you: if you want to switch lenders, you will likely need to pay fees to remove the charge from your existing mortgage and register a new mortgage with the new lender. But your collateral charge mortgage is not transferable without paying a notary, which may cost you around $800.In addition, all other debts (line of credit, credit cards, etc.) covered by the “umbrella” will have to be repaid.