It has come to my attention that there are some pretty funky deals being offered out there.
My question to you is....do you know what you are signing up for? Do you understand the details? Prepayments? Do you have the ability to port? Do you have the ability to blend? How will they calculate the penalty if you want to get out of your mortgage early?
These are all questions that you should be able to answer when you are signing a mortgage.
There is a "No Frills" type product out there that has a fantastic 5 year rate but the downside is that as follows: prepayment allowance is 10% lump sum once per year, 10% increase in payments once per year, no match payment; no porting (so if you sell you will be paying the IRD (high) penalty); no blending.
It is not worth it to get an extra 10bps off your interest rate if you lose porting ability and large IRD penalty calculations.
This is one of the main reasons why you would use an experience mortgage broker. Not only can they get you great rates but they can insure that you are aware of all the pitfalls and the pluses on the mortgage product you are signing. Not to mention that the mortgage broker's loyalty is to you and they have access to many many lenders.
If you are looking for an experience mortgage broker who has a passion for numbers and people, call me. I would love to help you get into the best mortgage that meets your needs.