• What is the biggest mistake you can make when getting a mortgage?

    Renewing your mortgage

    When your mortgage comes up for maturity, one of the biggest mistakes you can make is accepting your bank’s first offer. When your mortgage comes up for maturity, your bank will send you renewal documents. The rate that they offer you is never their best rate in my experience. They almost always test your knowledge, and the onus is on the borrower to ask if they can do better. A mortgage broker comes in handy in this case because they can help give you a target and tell you if you are being treated fairly.

    Purchasing a home

    The biggest mistake you can make when you are getting a mortgage to purchase a home is actually a decision that you make before you even get the mortgage. One of the biggest mistake I have seen my clients make when purchasing a home is: not going conditional on financing. This can be dangerous in some cases and I have seen people lose a lot of money when their financing falls through, they lose their deposit, and they risk being sued by the seller if they sell it to somebody else for less. It is very important to speak to a mortgage broker or your bank first, especially if you were making a firm offer to purchase a home.

    Refinancing

    One of the biggest mistakes I have seen people make when refinancing is: when they are refinancing to pay for renovations on their home but they have already started their renos. Often banks will order an appraisal on the home when people are refinancing so the banks will know the condition of the home inside and out. Most banks will not provide a mortgage on a home that has unfinished projects. So it is always better to refinance prior to starting the renovations, or after, but never during!!!

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