I know, I know, I go on about this stuff all the time, but it’s because it’s THAT important, especially in today’s lending environment!
There was an article in the Globe & Mail last week called “The Big 6 Banks Will Fleece You – If You Let Them” that Mortgage Jake shared on Facebook, with some additional commentary of his own – see it HERE
As I said in my Facebook comments, it makes my blood boil to see people stuck in situations that they shouldn’t be in, or can’t get out of, because they’re handcuffed by their current mortgage terms – and it’s usually because they dealt with one of the banks DIRECTLY. I’m not saying don’t get a mortgage with one of the big banks…you can still get one through an A lender (aka one of the big banks) but do it through a mortgage broker who is going to negotiate the very best terms for you for both your current situation, & your future goals! And it doesn’t cost you a thing! #nobrainer
Let me tell you about my friend Mr. B. He’s stuck in a mortgage until October because the so-called “mortgage specialist” at his local branch sold him a bill of goods when he renewed last time, that just wasn’t true! If I’m remembering correctly, he said that the last time he checked into it, that the penalties would be almost $20k to break it early…so he’s been putting his plans on hold and waiting out the current term. And luckily he’s in a position to do that, sadly not everyone is!
And then there were clients of mine who found themselves in a difficult spot when the market turned so quickly last year. They had purchased a new home & we were having difficulties selling their old one. And it became evident that it would end up selling for far less than we had anticipated. Getting out of the purchase could have cost them thousands for breaching the contract, so that wasn’t really an option. But I did present them with a number of other options on how they could deal with the situation in a way that would better serve their interests. Several of the options involved going to their lender with creative solutions. Since they were dealing directly with the bank, none of those creative solutions were available to them. Had they been working with a mortgage broker, those options would 100% been available to them – how do I know? Because I talked to several brokers that I deal with on a regular basis about the options, before I suggested them to my clients! In the end, their house sold & their purchased closed, but things certainly didn’t work out the way they planned, nor in a way that was most advantageous to them! Stuff like this haunts me, seriously. :(
Stepping off my soapbox (again)…until next time ;)

**This story was originally sent out on March 28th to my Daily Update peeps! If you would like to start getting my daily email too, just shoot me a message! M-W-F are real estate stories, either that I've written myself or that I consider share-worthy, & T-Th are new listings**