Priceless Mortgage Tips from an Oakville Mortgage Broker

You may need to acquire a mortgage in Oakville to invest in a home. Or you are approaching the time to renew your mortgage. In either case, you need to have a plan to deal with your situation. We shall share valuable mortgage tips of an Oakville mortgage broker in this post to help you find the solution. Additionally, mortgage tips that we are going to share with you will help you save your time and money. 

Valuable Mortgage Tips for Mortgage Borrowers  

Firstly, you must ponder certain factors to end up your mortgage in your best interest. Here are valuable mortgage tips that will save time and money to help you deal with your mortgage payments successfully.  

Ask Lenders about Pre-Payment Privileges:

The rise in an interest rate means a significant portion of monthly mortgage payments will go the interest versus principal. However, pre-payment privileges can help you pay down your mortgage faster. If you are unaware of the term, “pre-payment privileges”, we shall tell you about it. Pre-payment privileges allow borrowers the flexibility to prepay a proportion of the principal before the amortization period ends without penalty. At times, lenders may offer you the best rate at the cost without allowing you to make pre-payments on a mortgage. They will allow you to do it during the set term. Hence, you can ask your lenders about pre-payment privileges to know: Can you make extra payments with a mortgage?   

You may understand the benefit of prepayment privilege with our supposed example. For example, $300, 000 is your mortgage at a fixed interest rate, amortized for 25 years. You will pay your mortgage earlier than the expected period and save on interest with a prepayment privilege. 

Are There Any Penalties If You Break Your Mortgage?

You may need to sell your home before the mortgage term ends under certain circumstances. For example, you may need to do it with the change in your marital or financial status. It will also break your mortgage eventually. Therefore, you should know about penalties that may incur if you break your mortgage according to the Oakville mortgage broker. We shall tell you about the penalties that incur when one breaks a mortgage in Oakville. 

Generally, you will need to pay 3 months of interest with a variable-rate mortgage with one of the big banks. Moreover, you will need to pay a greater of 3 months of interest or Interest Rate Differential with a fixed-rate mortgage. The current mortgage rates and the remaining mortgage balance determine IRD. Thus, you shouldn’t forget to ask a lender if IRD calculations are discounted rate-based or higher posted rate-based. 

You can escape mortgage penalties via a portable mortgage and an assumable mortgage. A portable mortgage means transferring your mortgage to a new home or even combining it with a loan if possible. An assumable mortgage permits the borrower to pass a mortgage to a qualified buyer than breaking it.

Realize the Benefits of Making a Down Payment of Less than 20%

You can get the best rate for a mortgage if you make a mortgage down payment of 20% or more. However, it doesn’t mean you are making the best deal to get a mortgage from the lender. Usually, lenders offer the best interest rates to high-ratio mortgage borrowers. High-ratio mortgage borrowers are those who need mortgage insurance because they have less than 20% down. The reason behind it is that default insurance makes high-ratio mortgage borrowers less risky for lenders against loss. Consequently, lenders fund the mortgage loan to borrowers carrying low risks for them concerning mortgage payments.

Research Mortgage Rates:

Bank posted mortgage rates aren’t the lowest more often than not. Thus, you must research mortgage rates while shopping around and compare them before signing a mortgage application. 

Opt for a Broker Than a Bank:

Mortgage brokers can help you get a lower mortgage rate as compared to banks. It is also what a study revealed from the Bank of Canada.

Keep Your Credit Scores in Good Standings:

You can get the best mortgage rates if you keep your credit score in good standings. You can keep your credit scores high if you pay your bills on time. Also, make sure not to let your debt exceed 35 percent of your limit.


Whether you need a mortgage to buy a new home or renew your mortgage, mortgage tips will come in handy. You can capitalize on the following mortgage tips of an Oakville mortgage broker to pay your mortgage successfully with time:

  1. Ask your lender about prepayment privileges to pay your mortgage earlier.
  2. Capitalize on a portable or an assumable mortgage if you need to break your mortgage.
  3. Understand the benefits of making a 20 percent or more down payment to acquire a mortgage.
  4. Research mortgage rates before signing a mortgage application.
  5. Contact a mortgage broker than a bank to acquire a mortgage.
  6. Lastly, keep your credit score high to get a mortgage with the best rate.

Patrick Romann ( is an independent Mortgage Agent in Oakville dedicated to helping you build and execute the best mortgage plan with mortgage services.

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