Have you ever heard of a no-frills mortgage? ?
If not – let’s break it down, shall we”?
A no-frills service or product is where non-essential features have been removed from the product or service to keep the price as low as possible.
While the name “no-frills” can sound enticing at first, it may not actually be the best choice when it comes to securing a mortgage. Here’s why:
1️⃣ You’ll pay a much higher penalty if you need to break your mortgage.
2️⃣ You’ll have limited prepayment privileges.
3️⃣ There may be limitations if you want to port your mortgage to a different property.
4️⃣ You may not be able to refinance your mortgage without incurring a big penalty.
Simply put? Save the no-frills for things like grocery store or budgeting on a car purchase! A no-frills mortgage can end up being quite restrictive and leave you with not a ton of flexibility moving forward.
Flexibility is important, life is full of unexpected curve balls and you’ll want to be sure you’re covered for those moments. ⚾️
We do all the work to provide you with options from multiple institutions so that you can get the best rate possible AND a mortgage that suits your needs.
If you have any questions or want to discuss anything mortgage related, contact us today (link in bio)! We’d love to work with you.