March 19, 2021, by Daniel Johanis
In today’s competitive mortgage market, low interest rates are advertised across the board, but while many lenders offer rock-bottom rates, it is imperative to review all of the terms and conditions in a mortgage contract before signing the dotted line.
Sometimes the difference between lender A’s and lender B’s interest rates could be a few fancy coffees a month but could cost you thousands of dollars over the term of your agreement.
There are three Ps of a mortgage contract to look out for: Prepayment privileges, Portability, and Penalties.
When determining which lender to agree with, it’s always important to review the full terms and conditions of your mortgage contract. If something doesn’t seem right, or you don’t understand or agree with it, bring it up with your banker or mortgage broker before signing it. Oftentimes, changes can be negotiated in the contract before it’s signed, and, again, that can potentially save you thousands of dollars.
What does this mean?
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