Negotiating a mortgage is more complicated than negotiating just a rate. Unfortunately, clients too often lose thousands of dollars because they were poorly advised. Here are 7 questions that your banker should be able to answer:

What is the penalty if I want to break my mortgage and how is it calculated?

Is my mortgage transferable to another property? If yes, under what conditions?

Can I convert my mortgage to a fixed rate?

Is my mortgage subsidiary (blanket) or traditional?

What are my pre-payment options?

What factors influence the fluctuation of fixed rates?

What factors influence the fluctuation of variable rates?

If your banker is unable to answer all the questions above, or if you don’t understand all the implications of the answers, then maybe it’s time to consult a mortgage broker. Mortgage brokers represent several lenders and can explain the terms and conditions of the different lenders and their impact.

Brokers are paid by the lenders, and the remuneration is similar from one lender to another so, unlike bankers who offer just their employer’s products, brokers have a vested interest in explaining the particulars of the various products.

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