[onetwo_threefour]

Yes, I always try to explain to people that a convertible mortgage doesn't mean you get to lock in at the rate you have, it means you can convert the remainder of your term or sign up for a longer term at the posted fixed rate for the term you are signing up for. I'm not a big fan of selling people on the convertibility option, because the client really doesn't have any leverage to negotiate rates at the time of conversion. If you don't understand that, you might not realize that when you convert the rate might not be as good as you think.

This is exactly the kind of stuff where I have clients come back years later and tell me the bank is unfair,or the mortgage broker was unethical because this wasn't explained. Unfortunately, all we can tell people at that point is that is was a term of the financing they agreed to.