Mortgage features 

Dont only look at the interest rate of a Mortgage, you should also look out for these features.

Prepayment
You should ensure that you have some form of prepayment clause in your mortgage that will allow you to pay down your mortgage with a lump sum or extra payments without penalty.

Portability
This allows you to transfer the terms and conditions of your existing mortgage to your new home. This may allow you to keep your preferred interest rate should you have one.

Assumability
This means you may be able to assume (take over) the existing mortgage on the property. The mortgage you are assuming may have a lower interest rate than the current market. Assuming an existing mortgage is quick and saves you money on the usual mortgage arrangements such as appraisals and legal fees. Your financial institution is established. The assumable mortgage may be automatic or you may need to be approved…this will have to be verified.

Expandability
This allows you to expand the principal on a first mortgage at the lender’s rate of interest and it may be a cost-effective way to finance a home renovation.

* The three key elements to a mortgage are:

• The Interest Rate
• Prepayment Options
• Discharge Fees