To help you avoid some fundamental mortgage errors, here’s a list of the most common mistakes people make when obtaining a mortgage.
1. Renewing without rate shopping. A mortgage is one of the most significant financial transactions people make. It only makes sense to shop for the best rates, even when renewing your mortgage. It may seem like a hassle, but your current lender likely knows you feel this way, and may not be motivated to give you a competitive rate on your renewal. Look for a mortgage agent that helps you get the most competitive rates whether you’re buying for the first time, or renewing your existing mortgage.
2. Focusing only on the present. Clients should take into account all aspects of their lives when deciding on the term, type and mortgage product that is right for them. The mortgage product you are considering should be selected only after taking into account what the future holds. Consult your mortgage agent or an accountant to help you understand your financial status.
3. Believing that banks will give you the best option. Typically a bank will provide you with an option that’s most profitable for the bank and not necessarily the best option for you. On the other hand, a mortgage agent only gets paid if they find a solution tailored to your requirements and not the banks’ needs. They help you get the best rate and will work something out based on your spending capacity.
4. Too much importance vested in the best rate. While getting the best rate is important, it shouldn’t be the sole criteria as other factors need to be considered about before signing for a mortgage. The best mortgage product for you may not necessarily have the best rate but could be tailor-made to fit your requirements. Speaking with a mortgage professional will help you understand the different options and variables you can choose from.
To avoid these and other mistakes, reach out to the expert Dan Mizrahi, for all your mortgage requirements in Toronto, Ontario. Whether it is a first-time purchase on a home, or you want to take out equity from your house, I offer unbiased free consultations and will strive to help you save your time and money. For a complete list of services I provide, please click here. If you have any questions about mortgages, I’d love to hear from you. Please contact us here.