The mortgage market is competitive and rates have to be similar for lenders to stay competitive, which means the savings from one lender to another are not life changing (still very important though). I will say that 95% of the people I work with are completely unaware that there is another component of the mortgage that can literally save you thousands of dollars in unneeded costs and risk and those savings come in the form of how lenders calculate their penalties. With 60% of the Canadian public breaking a 5yr fixed mortgage and on average around month 38 of 60, people individually and collectively as a society are loosing vast sums of wealth due to the lack of attention regarding these processes and policies.
Case Study #1
Fixed rate terms (interest rate differential penalties): If you save $10 per month on the rate/your payment between lender A & B but on a $450,00 balance the penalty to break your mortgage with lender A (all big banks and some credit unions) is around $17,000 and lender B (some credit unions and monoline lenders) is around $4,000. What is arguably the better lender to pursue your mortgage with? This is where I have value, I know how the lenders design their mortgage products and can advise you to safety and provide a comprehensive overview on how the industry works. Now not only are you protected but the knowledge you now have through me, you can now protect your loved ones, as well. Be proactive and do your research, this family unfortunately had a very unpleasant surprise, contact me to avoid this situation.
PS. 60% of Canadians will break their 5yr fixed rate term, typically around month 38. This triggers the IRD penalty and knowing which lender calculates their penalties harshly or leniently can save you thousands of dollars. My job is to know and protect your interests, not the banks.
Dominion Lending Centres Canuck Mortgage Group