Tanya advises people when negotiating their mortgage not to forget to enquire about the possible pre-payment penalties that could occur…
Tanya Rankin: Good Morning. It’s Tanya Rankin in beautiful Williams Lake. What I want to talk about today was when your negotiating your mortgage. People are always really really fix on what kind of rate they’re gonna be getting whether there getting it at 3%, 4% and the term they are taking but seldom at the time of getting a mortgage does anyone think to ask what kind of pre-payment penalty they would be in that mortgage. Whenever your buying a home you think you gonna be there for a really long time and sometimes situations changed and things come up there unexpected and you need to sell that home prior to the term being do on the mortgage. And in the last few weeks I’ve had 2 different clients that has been faced with a mortgage payment penalty of $15 to $20,000 dollars and they don’t have a choice because they have to sell and there’s just been no flexibility at all. So I think its really important when your talking with your mortgage broker or with your banking institution that you address the issue of pre-payment penalty and find out if that would be a portable mortgage, could you take it to another town put it to another home, would you have to pay that penalty or exactly what your options are. At least you’ve talked about it your aware of it if that situation should arise. On that note I hope you have a great week and you can always email me at tanya@tanyarankin.com. Talk to you soon.