Five Tips To Keep In Mind When Getting A Mortgage

Author: Jeff Cody | | Categories: First Time Home Buyer , Mortgage Broker , Purchase Mortgages

Blog by Jeff Cody

Obtaining a mortgage can be challenging for people and can have a huge impact on the dynamics of their financial situation for years. It’s always better to get to know a few pointers on how to get easy approval for a mortgage. I am Jeff Cody, a mortgage broker with Jeff Cody, Platinum Mortgages Ottawa (Mortgage Architects). I want to help educate people on how to go about the mortgage process. This is why I have written down five tips to keep in mind when getting a mortgage. 

1. Always use a licensed mortgage broker
Always use a licensed mortgage broker when you require a mortgage for purchasing, refinancing or simply renewing your current balance. They can shop the mortgage market for the best product and rate tailored to your unique circumstances at no cost or obligation.

2. Match your mortgage payment frequency to your pay period
This will definitely make it easier to make your payments. Also, if possible, choose accelerated payments, which will possibly pay down your mortgage faster. Example: If you are paid every two weeks, then I recommend paying your mortgage bi-weekly accelerated. You can adjust interest at closing to have the payments come out of your bank account on the day you prefer.

3. Use your mortgage pre-payment privileges
You will save interest and pay your mortgage much faster when you use your lump sum and payment increase privileges. Example: Consider raising your mortgage payment when you get a raise, or when you receive a bonus or tax refund, consider putting a lump sum down on your mortgage.

4. Thoroughly inspect your mortgage renewals
When you receive your renewal notice for your mortgage, don’t just sign and return it to the financial institution. Contact your mortgage broker and ask them to shop the mortgage market for the best rates and products available. Most residential mortgages can be transferred to another financial institution at no cost, and rates can be held up to 120 days before the renewal date.

5. The best rate does not always mean the best mortgage product
Quite often, a mortgage lender offers a slightly lower rate but with restrictions like a bigger penalty to break the mortgage, or it cannot be broken for the term. You will also have to deal with less or no pre-payment privileges, not being portable or assumable, a higher compounding period, etc. Have your mortgage broker explain the pros and cons of the mortgage product before accepting it just based on the rate.

If you are looking for a licensed mortgage broker in Ottawa, reach out to Jeff Cody. I am a fully licensed mortgage broker with Jeff Cody, Platinum Mortgages Ottawa (Mortgage Architects). I obtained my Bachelor of Mathematics degree majoring in Business from the University of Waterloo and later obtained my mortgage broker license in 1988. My thirty-plus years of financial background includes three years working for CMHC, lending for several trust companies, business management, and over thirty years of mortgage brokering in the Ottawa area.

My mortgage services include purchase and refinance mortgages, first-time home buyer mortgage, 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. 

Get in touch with me today!

For a complete list of my services, please click here. If you have any questions about mortgages, I would love to hear from youPlease contact me here or call me at Cell (613) 724-9602, Office (613) 680-0775