Looking Beyond the Mortgage Rate

It seems more and more people these days are in a hurry; places to go and things to do. We have come to expect drive thru type service with not just our food but with all manner of items. We have many industries building their business by advertising rapid response times and that is great for oil changes, dry cleaning and getting your photos printed. When it comes to your homes financing though this is one area that not being in a rush will pay-off in many ways. While any advisor can quote a mortgage rate to their Edmonton client within five minutes it certainly falls short of ensuring there is a strategy in place to plan for life’s unexpected surprises.  You wouldn’t schedule an appointment to see your doctor only to receive a prescription for pain relief and not want them to treat the cause of the pain, right?

Many times choosing a mortgage based on rate only treats an immediate desire for the lowest payment and does not take into consideration many other factors that are equally important and deserving of our full attention. Asking a few more questions can help make sure that you’ll have the best chance available of paying unnecessary interest and penalties. For instance is there the likelihood that your employer will be wanting you to relocate out of Province or the Country? Is there the anticipation that you’ll be receiving a large sum of money in the near future from a bonus at work or perhaps an inheritance? How long do you see yourself living at the property or if this home is being purchased as an investment, how long do you foresee holding it within your rental portfolio? A good mortgage plan will always have an exit strategy that provides you with options. This way once the satisfaction of getting a great rate is over there will be peace of mind in knowing the financing on the home is in shape. Allow yourself enough time to explore beyond the rate on your next purchase or renewal, or ensure the advisor you are working with is doing that for you.

Source: Brandon Scott is a Sherwood Park / Edmonton Mortgage Broker and the author of a weekly column entitled Real Estate Solutions in the Sherwood Park News. This article was originally published on October 4, 2013

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