The lowest rate is not always the best option for everyone. Depending on your short and long-term goals for owning your home, it may be wiser to choose the mortgage solution that works best for you. The best solution for you may not be the lowest rate option. As the mortgage rate is priced based on the risk the borrower represents for the lender, it may be best to review the restrictions attached.
There may be restrictions tied to a hefty penalty if the borrower pays out the loan before maturity. Restrictions can come in the form of features, benefits, and bigger penalties than the usual 3-month interest or interest rate differential.
You may have to give up features such as prepayments or porting privileges when opting for the lowest-rate product. Without the ability to port, penalties on these types of lowest-rate mortgages can be quite daunting, such as a percentage of the mortgage balance at the time of payout.
Please speak to one of our commission-free mortgage experts. They can show you how to save even more with a full-feature mortgage by making small changes to your mortgage repayment plan.