Busted! Don’t Believe These Mortgages Myths!
Mortgages give you access to funds allowing you to own property, do home repairs or improvements and/or consolidate debts. All in all, there are many benefits when it comes to taking on a mortgage. However, finding the right mortgage is crucial, and for this, you need to get your facts straight. Currently, there are many myths and misconceptions about mortgages. If you are new to mortgages, you could easily fall for the rumors and falsehoods about what you should or shouldn’t do. Believing in these false facts could actually dissuade you from picking out the perfect mortgage. To help you separate facts from fiction when it comes to obtaining financing, mortgage broker Jeff Cody has debunked three of the most widely believed myths about mortgages.
Myth 1: The best rate equals the best mortgage
When looking for a mortgage, the rate alone isn’t going to help borrowers find the perfect mortgage. There are several mortgages available in Canada, and mortgage brokers can shop the market to make sure their clients get the best mortgage and rate available to suit their needs. The broker will even have the tools and connections to compare different aspects of a mortgage like monthly versus annual compounding, collateral versus standard mortgage charge implications, mortgage lender’s pre-payment penalties and reinvestment fees, amount, and timing of pre-payment privileges, online client portals, and more. Jeff Cody will arrange the best mortgage for the client and not just focus on the rate.
Myth 2: Mortgage brokers charge fees
Ninety-nine percent of the time, mortgage brokers do not charge the client for residential mortgages as the mortgage lenders pay a finders fee when the mortgage they arrange for you is closed. This is how we shop the mortgage market for clients at no cost to them. It’s a win-win for the client, broker, and lender.
Myth 3: Reverse mortgages are bad
There has been a lot of bad press about reverse mortgages, especially in the USA so let’s clear the air about them. Reverse mortgages are helpful for some older clients who want to remain in their homes. They can be paid off anytime, like a regular mortgage but they do not have to be repaid (no mortgage payments required) while the borrower is alive or living in the property the mortgage is taken against. Also, the property remains in the client’s name. It is an excellent way for parents and grandparents to refinance their home to help their children or grandchildren purchase a home, travel, renovate, study further, etc. It’s like an early inheritance for the borrower’s children.
If you’re looking to steer clear of more myths like these, reach out to Jeff Cody. As one of the most experienced fully licensed mortgage brokers in the Ottawa area, I can help you find the perfect mortgage for your needs. I have more than thirty years of experience in the financial and mortgage industry. My mortgage services include purchase and refinance mortgages, first-time homebuyer mortgages, mortgage pre-approval, residential and commercial mortgages, home equity loans, private mortgages, etc. I serve clients across Stittsville, Kanata, Orléans, Ottawa, Clarence-Rockland, Perth, Cornwall, Kemptville, Smiths Falls, Barrhaven, Nepean, Almonte, Carleton Place, Embrun, Prescott, Arnprior, Munster, Lanark, Merrickville-Wolford, Brockville, Casselman, Renfrew, and the surrounding areas.