The spirit and intent of my recent guest post @ Canadian Mortgage Trends is not to suggest one path is the only path, rather it is to suggest quite simply that rate and rate alone should not be the defining criteria of a proper mortgage plan. I am concerned that advertising which is heavily focused on rate, rate, and rate is something which oversimplifies consumer expectations.
There is far more to consider than simply ‘best rate’, and many homeowners are unaware of the variety of policy differences from one lender to another as well as how such policies may impact them. The largest debt in a persons life arguably deserves some third party experienced attention, something that is tough to deliver in a meaningful way if compensation is reduced by more than half in an effort to provide the lowest priced product.
My clients are often their own special snowflake with unique needs, plans, and concerns. It is a rare occasion when two clients in a row wind up in the same product at the same lender in our office, this should speak volumes as to the value Brokers provide.
A clients saving .10% on a 185K mortgage equates to $924.60 over 60 months, if that client actually lasts the full 60 months in that mortgage product – which current stats suggest 6/10 CDN’s will not. Paying a $6,475.00 prepayment penalty to break free rather than a $1,295.00 penalty makes that two to three hours spent chatting with an Expert Mortgage Broker about all the facets of short and long term plans well worth the .10% difference in rate.
You (The Broker) are more than just a rate! Communicate!