Christine Buemann Mortgage Broker

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. 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...

As I discussed in my previous blog posting, the interest rate is an important aspect of a mortgage, but is not the only factor to consider. There are other “features” within a mortgage that can be equally as important. Here are a few: ·          Payout penalty calculations: how the lender calculates what your penalty will be if you pay you pay out your mortgage out before the end of the term ·          Pre-payment privileges: how much principle you can pay down annually without a penalty ·          Portability: if you can “port” the mortgage to another home should you choose to move ·          Assume-ability : if someone can “assume” the terms and balance of your mortgage ·          Blend and refinance-able : if they will allow you to blend the rate of your mortgage with t...