Don't only consider the mortgage rate when shopping for a mortgage. Because mortgage rate is not the most important thing. Let’s consider the bigger picture.
The difference between 2.99% and 3.04% works out to an additional $2.66 per month per $100,000 that you borrow. On a five year mortgage, this only equals $159.60 per $100,000 for the entire five year period. If the mortgage with 2.99% does not allow any pre-payment, or is burdened with high penalties if you try to refinance or pay off the mortgage because you are moving, is it really the best choice you can make?
Some of these “no frills” mortgages lock you into the term of the contract and only allow you to get out of the mortgage if you sell your home. While that might be alright in some circumstances, is it right for you?
Jagdeep Singh, B. Arch.
Real Estate Broker
Direct Tel: 647-287-4644
Direct Fax: 866-450-9199
Formally educated as an Architect, Jagdeep Singh is Toronto REALTOR™ consulting on both resale real estate and new developments. Powerful Local Focus on Real Estate with a Global Perspective™
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