These tips from the UK’s MSN.com might sound familiar but there some subtle differences….. First, here are the 4 tips.
1. Overpay when possible (make prepayments)
2. Get the best possible mortgage deal.
3. Check out an offset mortgage (All in One mortgage in Canada)
4. Switch to a better deal when your Capital increases….(shop for a better deal as your pay down your mortgage)
Nothing earth shattering…. simple but good advice. Now here is my additional advice …. #2 suggests we get the best deal…and we all want to pay the least amount of money…but being in the right product is just as important as going for the lowest rate…a good example is today’s variable rate mortgage of 1.95%… it’s the lowest rate available.. but is it the right product for everyone? Probably not…
#3 was also interesting… the All in One mortgages are becoming more popular and there are a few different lenders offering these now….these products are also known as Australian Mortgages…
#4 is great advice… when your mortgage comes up for renewal…shop around… speak to a broker… most financial institutions won’t offer you their absolute very best rate at renewal… this is a fact… and we understand… after all, it is a business and Banks want to make a profit. But let’s not contribute too much to the lender’s bottom line.