You’ve looked online. Your bank has given you a rate. Your friend says they got something lower.
Now you’re wondering: Am I getting a good deal, or am I leaving money on the table?
Fair question. A mortgage is a big commitment, and nobody wants to pay more than they need to.
I’ve been a mortgage broker since 2008, and I understand why the rate is often the first thing people ask about. It affects your payment. It affects your budget. Of course you care.
But before I can answer “What’s your best rate?” properly, we need to talk about you.
Why your friend’s rate might be different
Your friend may have bought a home while you’re refinancing. They may have a different down payment, mortgage term or repayment timeline. They might also be comparing a variable rate with the fixed rate you were offered.
Those details matter.
The rate available to you can depend on the mortgage product, your credit history, your income situation and the lender. There isn’t one rate that applies to every borrower in Ontario.
That doesn’t mean you shouldn’t compare. You absolutely should. Just make sure you’re comparing mortgages with the same terms and eligibility requirements.
That great online rate deserves a closer look
I’m all for doing your homework. If you see a rate that looks better than the one you’ve been offered, send it over. Let’s look at it.
Then let’s read the details.
Is it available for your type of transaction? What term does it require? What conditions apply? And what does the mortgage let you do once you have it?
A rate on a screen gives us a starting point. We still need to confirm whether you qualify and whether the mortgage works for you.
Your life doesn’t stop when you sign a mortgage
Maybe you’re buying what you hope will be your forever home. Maybe you already know you’ll want more space in a few years. Maybe a job change, renovation or move is on the horizon.
We should talk about that before choosing your term.
If you need to break a closed mortgage early, a penalty may apply. The calculation varies by lender and contract, and the cost can be thousands of dollars. Prepayment privileges also vary, so it matters how much extra you can pay without a penalty.
Ask what happens if you sell. Ask whether you can take the mortgage to another property, and what conditions you would have to meet. Ask how the penalty is calculated.
I want you to understand those answers while you still have choices.
Yes, I care about getting you a competitive rate
Let’s be clear: the rate matters. You work hard for your money, and even a small difference deserves a proper comparison.
My job is to help you understand what that difference means in dollars, alongside the terms you’re agreeing to.
If two suitable mortgages offer comparable features and one has a lower rate, great. Let’s explore it. If the lower rate comes with a restriction that could affect your plans, you should know that before you decide.
You deserve enough information to make the choice confidently.
What should you ask before choosing?
Start with these five questions:
- Do I qualify for this rate, and what conditions apply?
- What will my payment be?
- What would it cost to break this mortgage early?
- How much extra can I pay without a penalty?
- How does this mortgage fit with my plans over the next few years?
And if an answer doesn’t make sense, keep asking. You don’t need to know mortgage terminology to deserve a clear explanation.
Have a rate quote or a renewal offer sitting in your inbox? Send it over.
At Mortgage Powered Financial Group, we can review it together, compare the options available to you and talk through the details. Then you can decide what makes sense for your home, your budget and your next chapter.
