Start with the end in mind when looking for a mortgage – The Mortgage Gal

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When I work with clients, part of what I do is try to understand who they are and what their plans are for the future. We discuss plans for family, careers and real estate.

Taking the time to understand their longer-term goals helps me provide ideas and advice on which mortgage(s) might be best for them.

For example, I have worked with an amazing family in Northern BC on several purchases. We talked about long-term goals, including adding more rental properties to their portfolio.

With their last home, I strongly advised them to go for an adjustable rate mortgage to give them flexibility in case they needed to make changes to their mortgage.

Fast forward and they’re refinancing this house to pull out equity to buy two condos to use as Air BnB rentals.

Their current lender was unable to structure their potential refinance the way they wanted, so I went to find another lender that offered the right solution.

We now have an approval in place and because they have stayed the course with their variable rate, we are able to pay off the existing mortgage with a penalty of just under $2000. I ran the numbers and if we had originally blocked (I had notes in their file on the rate at the time) their penalty would have been a little over $12,000.

Another couple I worked with sold a house and bought another. They had over 50% equity in the new house. They too had thought about buying rental properties. When they bought the house, we did so with a lender who offered a combination of amortizing mortgage and line of credit.

They didn’t need the line of credit at the time and didn’t advance any money at the time of purchase. They have worked hard to pay off their mortgage and have significantly increased the equity in their home.

Because the line of credit they have automatically increases as they pay off the amortized mortgage, they have easy access to lots of money.

They called to discuss options for another property and we looked at their line of credit. Turns out they had enough resources to pay cash for what they wanted to do.

Thinking about your longer-term plans can help your mortgage advisor guide you to a great long-term solution. Prices don’t always have to be the deciding factor.

So start with the end in mind.

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