Busted! Don’t Believe These Myths About Mortgages!

For the vast majority of homebuyers, securing a mortgage makes homeownership affordable. Moreover, with mortgages, you can spread the payment over the course of many years, and this makes repayment more manageable!

While a mortgage is a cost-effective way of borrowing, several misleading pieces of information about mortgages often get passed along the way. And believing in these misconceptions could dissuade you from acquiring a good mortgage deal. Taking on a mortgage is a huge commitment, and there shouldn’t be any room for error. To help you separate fact from fiction so that you get the right mortgage, Team Sabourin Mortgages has debunked three of the most widely believed myths about mortgages.

Myth 1: You need to pay to work with a mortgage agent
This is not true. It’s a common misconception that you need to pay when working with a mortgage agent or broker. Mortgage agents and brokers are paid a commission, which is a percentage of the loan that the lender bank, credit union, or another type of lender provides. Therefore, their services are at no cost to the client or borrower.

Myth 2: My bank will give me the best mortgage rate
Contrary to popular belief, banks don’t always give the best mortgage rates. Banks rely heavily on loyal customers because loyal customers tend to “shop around” the least. Also, banks and other lending institutions post interest rates generally higher than what they are willing to negotiate. Mortgage agents and brokers are able to negotiate lower interest rates from lenders due to the amount of volume they bring to the lender.

Myth 3: You should wait until your term is up before you refinance or renew
Again, this is not completely true. Although you incur penalties to terminate your mortgage early, the potential savings in interest may outway the penalty. So, it may be costing you more to stay with your current mortgage.

If you’re looking to steer clear of more myths like these, reach out to Team Sabourin Mortgages. We are leading mortgage agents in Kingston, ON, here to help you make the biggest financial decision of your life. We strive to give the best personal service with quick response times so that you find the best mortgage to suit their needs. We offer a mortgage refinance, mortgage renewal, short-term fixed-rate mortgage, long-term fixed-rate mortgage, low-interest rate mortgage, interest-only mortgage, mortgage amortization, and other mortgage services.

For a complete list of our services, please click here. If you have any questions about mortgages, we’d love to hear from you. Please contact us here.