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You Have Choices When It Comes To Your Mortgage

by | Jan 25, 2012

If you have not seen the “mortgage rate wars” that have been going on in the last little while, then you’ve been missing out!  Rates are at their lowest in years, maybe decades!
That being said, you MUST know that you Have Choices when it comes to your mortgage!  You don’t have to take the first offer that lands in your lap, or in your mailbox!  That’s like buying the first suit you put on … you’ve got to try on a few till you get that perfect fit and flair … what works for YOU.  You have Choices!
If you haven’t met me yet, once you do you’ll know that I am ALWAYS here for YOUR best interest … getting you the BEST rates AND deal that I possibly can.
Here’s an article that I came across that I needed to share with you, my friends and followers of my blog.  It is an important read…

“Here’s a great a great comparison of BMO’s 2.99% special with other alternatives available …
Here are some of  the choices available:

  • BMO 5-year “Special” at 2.99%
  • Scotia 4-year at 2.99% or 5-year at 3.29%
  • ResMor variable at P-10

If the client’s goal entails paying their mortgage off fast, I recommends the ResMor variable of P-10 with the payments set at $1,418 (same as BMO). When you look at the chart below, the balance at maturity is roughly the same as the BMO mortgage, yet the penalty if they were to break it 24 months from now is $6,900 less than the BMO mortgage!
If the goal is low payments and a stable rate, the Scotia fixed is the way to go. Again, the penalty is $6,700 less than the BMO mortgage!
The Scotia STEP or FirstLine Matrix are great products to offer because BMO will not do a LOC behind the 2.99% product.
Think about the below when considering the BMO mortgage:
1. I won’t sign a cell phone contract for longer than three years that I can’t get out of, so why would I sign a mortgage for five years that I can’t get out of?
2. A lot can happen in five years… people get transferred, find a bigger house, have babies, change careers, etc. Five years is a long time to be anchored to something!
3. Banks don’t give anything away for free – they’re there to make money. Let’s look at the details!
4. I find many of my clients like the Scotia option to skip a payment during break-up season or if they’re laid off for a month.








Max Amortization

30 Year

30 Year

25 Year

Monthly Payment on Max Amortization




Penalty to Break After 24 Months
with Sale of Property




Penalty to Break for Refinance




Prepayment Options




Skip a Payment




Balance at Maturity




Balance at Maturity by Paying $1,418.20



*Based on a $300,000 mortgage. The penalty assumed for the variable and fixed is three months’ interest. Penalties also include $150 discharge fee.
Courtesy of  Martin Krell, Broker/Owner, in Prince George, BC

Whatever your purpose right now of refinancing, or that you are looking to buy, I WILL get you the best deal possible … the suit that fits you best!

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