What you should know about deeply discounted mortgage rates


You’ve heard the expressions ‘cheapest isn't always best’ OR ‘you get what you pay for’. This also applies to shopping for the best mortgage rates. When you are looking at paying off your largest investment over 25-30 years, it is easy to jump on the lowest rate available. But, the low-rate mortgages could actually cost you more in the long run.

Check The Fine Print: These low rate mortgages often are the least flexible when it comes to paying off the mortgage or getting out of the mortgage before the term is up. For instance, is the mortgage fully closed? That means you're not leaving the lender unless you sell your house, so your options are limited and you have no negotiating power if your needs change in the next 5 years.

Low or No Prepayments: Many mortgage options allow home owners to pay up to 20% of the outstanding principal each year, where low-rate mortgages may only allow 10%. Many lenders will also allow you to make unlimited double up payments throughout the year, where low-rate mortgages may not allow any double up payments.

Maximum 25-year amortization: Many first time home buyers need the extra flexibility of having a 30 year mortgage.  The low-rate mortgages can away flexibility you may need later.

For the same reasons I caution buyers about hiring a discount brokerage to handle their real estate transactions, I also caution you about signing up for the lowest mortgage rate on the market. You always get what you pay for and the cheapest isn’t always the best.

If you are considering a discounted mortgage rate, call me first to discuss what to look for in the contract. I will help you find the right combination of low rate and contract terms that will meet both your current and future financial needs.

Considering Buying or Selling Your Home? 

For more information on buying or selling real estate in Burlington, Hamilton, Oakville, or Toronto, or if you have questions about current market trends, staging properties or mortgage interest rate information, I'd be happy to answer all of your questions to accommodate all of your real estate needs.


Sean Kavanagh
Sales Representative

For more information on my Home Buying or Home Selling System, contact me at
Email: sean.kavanagh@century21.ca
Web: www.seansells.ca
Facebook page: SeanKavanaghC21

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Masters Diamond Award Winner – 2010 & 2011, Masters Ruby Award Winner – 2009



Oakville Real Estate – CENTURY 21 Miller –TOP TEN Office*

Office: 905.845.9180 | Fax: 905.845.7674 | millerrealestate@century21.ca
Oakville Real Estate, Burlington Real Estate, Milton Real Estate, Mississauga

 *For CENTURY 21 Canada in 2010 and 2011, Based on Gross Closed Commission

Sean Kavanagh

Sean Kavanagh

Sales Representative
CENTURY 21 Miller Real Estate Ltd., Brokerage*
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