You can get a low mortgage rate by signing up
for a five-year term. But you could be penalized for an early exit if
your plans change.
Most of the Big Five banks start with a high posted rate and offer
discounts to customers who ask for one. It’s a game that has gone on for
many years. However, the high posted rate can come back to haunt
customers who decide to break a closed mortgage at a time when rates are
falling.
Mortgage brokers help clients get the best rates from a variety of
lenders. Many prefer to use smaller banks that post their best rates and
don’t offer discounted rates.
How can you avoid getting hit with a mortgage prepayment charge that eats up your home equity when you sell?
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