While most people start off their mortgage search by going after the lowest rate, what they are really after is the mortgage with the lowest cost. Then again, the majority of borrowers in Canada end up with a mortgage that is not the lowest rate nor the lowest cost. Strike 1!
Whether borrowers realize it or not, what is often more important to them is a mortgage with the lowest risk. So they end up with 5-year fixed mortgage that has a constant payment, which is usually not the lowest risk mortgage at all. Strike 2! Time to bring in a mortgage broker like myself or your local Dominion Lending broker to be the pinch hitter and go to bat for you.
There are 4 and only 4 mortgage strategies, and everything fits within these 4 strategies: Lowest Cost, Lowest Risk, Maximum Flexibility, and Lowest Payment. Expert investors think about financial transactions in these terms, and you should think about your mortgage in these terms too. Consider them like the 4 bases of a baseball diamond, you need to touch on every one of them to complete a home run. A mortgage broker like me or your local Dominion Lending Centres broker can help you prioritize your mortgage strategy based on your current financial goals, life situation, and risk tolerance, and the potential for various scenarios that could affect you over the term of the mortgage. You can’t achieve all 4 mortgage strategies together, there are trade-offs, but through strategic mortgage planning we can help guide you through the strategic options, help you determine the best strategy for you, and find the best mortgage products that fit your strategy.
So next time you are planning your mortgage, make sure to cover all 4 bases by thinking about The 4 Mortgage Strategies: Lowest Cost, Lowest Risk, Maximum Flexibility, and Lowest Payment, and get a mortgage broker like myself or your local Dominion Lending Centres broker to help you. Now that’s a Grand Slam!
By Todd Skene