February 2, 20263 min read
For many Canadian homebuyers, this question comes up before they are ready to make an offer. The interest rate is important, but it is only one line in a contract that may last several years.
What lenders actually look at
Here is what matters most:
- Prepayment privileges determine how quickly you can reduce principal without a penalty.
- Penalty formulas matter if you may sell, refinance or change lenders before maturity.
- Portability can be valuable if you expect to move during the term.
- Restrictions on refinancing, transferring or accessing a lower rate can turn a cheap mortgage into an expensive one later.
Compare total flexibility and potential exit costs before accepting a rate that is only a few basis points lower.
Want this applied to your own numbers?
Call Phil Cragg at 866-349-4915 or request a written comparison.
Request a rate quote