Choosing The Right Home Mortgage Loan

Next to whom you marry, this might be the most important decision you ever make! Choosing the right home mortgage loan, and the right mortgage company can be the difference between an “enjoyable” experience and your worst nightmare.

Canada’s big banks (Royal Bank, Scotiabank, TD Canada Trust, Bank of Montreal, National Bank and CIBC) are excellent options for many people. Online "virtual" providers like PC Financial and ING Direct are becoming very popular.

With so many home mortgage loan options and choices today, what is a person to do? First and foremost, decide what you want in a mortgage! Are you looking for the lowest possible interest rate? Are you looking for “personalized” attention from a banker, or will online, or phone banking work? Do you want a “freebie” of some sort, cash back or some other mortgage loan promotion? Do you care about liberal and flexible re-payment terms like easy lump sum principal re-payments or “accelerated mortgage payments?” Almost everyone is seeking a low or very competitive interest rate.

Start by searching for each company’s “posted mortgage interest rates” on company websites or in your local newspaper. Educate yourself on the “highs and lows” of what’s “out there.” Remember, variable interest rate mortgages are always lower than fixed, but are they right for you? More on this subject in a future column.

Ask around. What did your friends and family do? (Remember, this is just information gathering – what’s right for them may not be right for you!) Call a bank or go online and do a mortgage application, or ask to speak to a loan specialist. Be honest. Tell them you are looking around to make sure you get the best mortgage loan for your family. What makes that company different, or better, or worse? Don’t rush! A little home mortgage planning goes a long way towards saving you and your family a lot of time, money and heartache.

What did we do? The best fit for our family was a large Canadian “virtual bank” with a fixed, low interest rate, very flexible re-payment options, minimal paperwork, and free groceries every year until the mortgage is paid off! (smile)