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- make sure you look through your mortgage loan agreement. all applicable fees is to be on there.
- open and close mortgage is a case by case decision. not one is always better than the other. Are you planning on selling the place within a few years? do you plan on/or expecting to pay off a good portion of your balance in the next year or two? if so, then open option might be a better option.
** But there are closed term mortgage that allows you to put down a certain amount towards the principle of your mortgage a year without penalty.
- a good number of mortgages out there also allow you to early renewal a closed term with minimal to no penalty with a year or so remaining on your mortgage term.
- There are also open term mortgages that allow you convert to a closed term fixed mortgage should you think that rates are gonna go up or you just want more stabiliy in your payment schedule.
- When it comes to mortgages, it's not so much the hidden costs you got to look for but what features/options your mortgage has. You can ask your broker/banker/mortgage specialist about it but they can only share so much in one meeting (assuming they want to tell you at all). My best advice is try to maintain a close relationship with your broker/banker. That way he/she will spend that extra little bit of effort to try and save you a few dollars.
- Shop around, or get yourself a mortgage broker to shop for you if you don't have the time. sometimes the same bank but different branches might give you different rates
- Know what your plans are at least in the near future with your property, then find a mortgage term that will suit your specific case.
- if you are planning to keep the property. It might be a good idea to switch to a fortnightly or even weekly payment as oppose to a monthly one. to reduce amortization, pay off your mortgage quicker and in the long run save you on some interest
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