The
Bank of Canada’s Finance Minister Jim Flaherty was known for criticizing BMO’s
2.99% mortgage promotion. He even went as far as encouraging other banks not to
follow suit. Now that he has stepped down, they have come out with their Spring
special yet again. Although rates are always an important factor in a mortgage,
it is important to look at all of the aspects and/or restrictions in a
mortgage.
For questions on these options or for any
mortgage questions, please feel free to contact me.
http://www.christinebuemann.com
This particular special has
caught a lot of flack because of their restrictions but there are several other
lenders and products on the market to be aware of as well. Here are a few of
the restrictions on this particular BMO Special:
·
Pre-payment options are
reduced to 10/10%
·
Amortization is capped at 25
years (most you can still go to 30 or 35 years with 20% down)
·
Full
repayment before maturity can only occur if property is sold to an unrelated
purchaser at fair market value or if the mortgage is renewed or refinanced into
another BMO mortgage product
·
No cash account or skip-a-payment allowed
·
Potential $300 appraisal fee (they also will not provide you with a copy
and you cannot use a current appraisal)
When getting into a mortgage,
one of the first things to consider is how easily you can get out of it. Life
happens and in the event that you need you modify or get out of your mortgage,
you always want to go with the easiest and cheapest route without sacrificing too
much on the rate up front. Some options you want to look for are:
·
The ability to bring the
mortgage with you to a new home purchase
·
The ability to pay out the
mortgage and refinance with whoever is best for you at the time
·
The ability to have someone
else assume the mortgage
·
The ability to have your
co-signer removed without having to refinance
·
The ability to pre-pay as
much as possible
·
The ability to change your
payment frequencies as you choose
·
The ability to “blend and
extend” your mortgage
http://www.christinebuemann.com
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