Mortgage Tips

Say Hello To The Easiest Way To Mortgage

Helping you find the best mortgage rates in Alberta

April 10, 2021 | Posted by: Matt Broom-Hall

The ideal mortgage loan is more than just having a low interest rates. The real solution is more complex than typically what you see advertised and Flare Mortgage Group is here to guide you through the process so that first-time home buyers can truly benefit from the low interest mortgage rates on offer. Canadian government legislation now requires homeowners to have a mortgage loan that is personally customized to their individual situations.

How rates are calculated.

Homebuyers are required to go through a ‘stress test’ that along with regulations will affect the rates available to them. Factors that impact your rate include your down payment amount, personal credit score and timeline of purchase.

At Flare Mortgage Group, we have the experience to see how various mortgage loans work for our clients over the long-term. We can help develop a tailored plan that not only includes the best possible mortgage rate, but is structured to work for you over the course of your home ownership.

Best of all, you are under no obligation, and it will cost you nothing to have us work on your behalf to save money on your investment.

Why the lowest mortgage rates aren’t always the best choice.

So you’ve decided to make the big step and buy a house. The next step is financing that new home and you are probably going to see advertisements promising the lowest possible mortgage rate. In general, a lower mortgage rate makes sense, as you will be paying towards the interest rate over the loan period.

The truth of the matter is that in some cases lower mortgage rates can end up costing you more in the long run than another option with a higher rate. The reason for this is that each mortgage has various factors, such as fees and penalties, that may impact you down the road.

Speak with one of our mortgage brokers to help you decide which option can work best for your long-term plans and lifestyle.

Understanding the various fees attached to mortgage rates.

If the event you need or find yourself in breach of your mortgage contract, you will be subject to various penalty fees. It is important that you consider not just your current financial situation, but plan for future events, as well as take into consideration the possibility of unforeseen events that could put your mortgage in jeopardy. As it is with investments, each individual should try to weigh the various factors and risks especially with such a serious decision such as undertaking a mortgage.

Variable Rate Mortgage vs Fixed Rate Mortgage penalty fees.

If you have a mortgage with a variable rate, and find yourself subject to penalties, you are typically looking at 3-months of interest in charges. However, if you are using a fixed-rate mortgage, it will be either several months of interest, or what the lender calculates to be an amount lost in interest due to early breach of the mortgage.

This is just one factor, and there are other aspects to be aware of that are connected to a mortgage beyond the interest rate.

The pitfalls of advertised rates and introductory offers.

With home mortgages being a major financial industry for banks and lenders, you are bound to see many advertisements competing for your dollar.

You may be enticed by offers of fixed low mortgage rates in Alberta, but the reality is that a well structured mortgage loan requires careful planning by a mortgage broker and an underwriter.

Low-interest rate and deferred interest rate mortgage products can work out for some buyers such as real-estate investors and “house flippers”. For most homeowners, a standard fully amortizing mortgage is ideal.

The best way to find out is to talk to a mortgage broker. It typically won’t cost you any additional fees, and will likely save you on total cost of ownership.

Creating happy homeowners by providing personal bespoke mortgages solutions with uncompromising service.

Matt Broom-Hall
Mortgage Broker & Happiness Creator
Flare Mortgage Group
mortgages@mattbroomhall.com

Serving Clients In: Edmonton, Sherwood Park, Fort Saskatchewan, Leduc, Nisku, Stony Plain, Spruce Grove, Beaumont and St. Albert.

Also Serving: All areas of Alberta including: Calgary, Lethbridge, Red Deer, Medicine Hat, Wood Buffalo / Fort McMurray, Grande Prairie, Airdrie, Lloydminster AB, Okotoks, Cochrane, Camrose, Chestermere, Sylvan Lake, Brooks, Strathmore, High River, Wetaskiwin, Lacombe, Canmore, Morinville, Whitecourt, Hinton, Olds, Blackfalds, Taber, Coaldale, Edson, Banff, Grand Centre, Innisfail, Ponoka, Drayton Valley, Cold Lake, Devon, Drumheller, Rocky Mountain House, Slave Lake, Wainwright, Stettler, St. Paul, Vegreville, Didsbury, Bonnyville, Westlock, Barrhead.



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