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What to do, what to see? In Port Alberni, BC

Neglect Not Thy Cost of Borrowing

Posted on Feb 26, 2014 in Mortgage Market Updates and News

Rob McLister, CMT
Canadian Mortgage Trends

Neglect Not Thy Cost of Borrowing


That’s the first commandment when comparing mortgages.

We get several calls and emails a day asking something like: “Who has the lowest rate?”

Rarely do we hear folks ask: “Who has the lowest total cost of borrowing?”

There’s a big difference between the two. The interest rate is just one of multiple factors that determines your total cost of borrowing over the term.

There’s so much in the fine print that can turn a low rate into an expensive rate, including but not limited to:
•Poor term selection
•Overlooked mortgage restrictions
•Bad conversion rates
•Onerous mortgage penalties (relevant when refinancing or terminating before maturity)
•Unanticipated fees
•Bad advice (e.g., on deal structuring, penalty minimization, etc.)

Regardless of where you plan to get your mortgage, you owe it to yourself to ask a professional if the mortgage you’re considering really does have the lowest “total cost of borrowing”, given your needs.

Make sure your adviser compares all available lenders for alternatives, not just the lender(s) he/she works with most often.


I'm looking forward to connecting. Due to being in and out of meetings both for council and business, email is typically the best way to get in touch with me. If you prefer to call, that's fine as well, it just may take me slightly longer to get back to you. Texting is also welcomed.
  • TMG - The Mortgage Group Canada Inc.
    4201 Johnston Road, Port Alberni, BC, V9Y 5R2
  • Cell: 250.731.8735
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