12 January 2011

No frills mortgages can have attractive interest rates but watch out for what they don’t have. No frills mortgages prepayment privileges are very often not a feature on these types of mortgages. That means you cannot make annual lump sum payments or increase your monthly payments to pay off your mortgage faster. They too have a no “refinance policy” on most of these mortgages whereby you cannot refinance your mortgage should you want to anytime. You typically cannot break the term of the no frills mortgage unless you sell your home. This limits the opportunity to refinance your mortgage at a lower interest rate and or consolidate debt or purchase other properties with another lender. The no frills mortgages are typically not in the best interest of the clients. Mortgages offered with flexible features interest rates are low enough and attractive enough to off set the high restriction on these types of no frills mortgages. For all your mortgage needs, call 604 649-5991 Vancouver or 604 536-3802 Fraser Valley 1-800-687-9020 Toll Free throughout BC