For Mortgage Decisions, Look Beyond The Interest Rate And Get Expert Advice

For mortgage decisions, look beyond the interest rate and get expert advice
Globe and Mail ~ October 25th, 2019

Are you among the shoppers who carefully read the labels of items you plan to buy? It seems that more and more Canadians are making informed purchasing decisions a priority, and Paul Taylor, president and CEO of Mortgage Professionals Canada, welcomes this attention to detail. He believes the same – if not greater – scrutiny is warranted when people are obtaining or renewing a mortgage.

“People often look for the lowest interest rate, but that doesn’t necessarily mean that these products are best suited for their lifestyle,” he says. “While the interest rate can make a lot of difference on payments over the long term, there are other things to consider; for example, pre-payment penalties, fixed versus variable rate product, term length, and whether or not the mortgage is portable.”

Let’s consider young families, for example. “They have a high propensity for income growth, since they are at the start of their careers. Very often, they will need to be flexible to maximize career opportunities,” explains Mr. Taylor. “Their own family may grow and many have aging parents or grandparents. All this can impact their living situation.”

At this dynamic stage in life, people may not fully appreciate the high likelihood of change – but statistics show that more than half of five-year fixed mortgages are broken before the term is up, he says.

Click here to read the full article.