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Old 10-14-2014, 05:21 PM   #4
Mortgage Made Easy
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Join Date: Sep 2014
Location: Calgary, AB

Originally Posted by bizaro86 View Post
I've paid mortgage penalties in the past, but only 3 months interest due to interest rates declining.

Do you offer fixed rate mortgages that only charge a 3 months interest penalty? That seems pretty unlikely to me since you could just refinance if rates dropped, but got the benefit of the fixed rate if they rose.
No, there is not a fixed rate mortgage that charges ONLY 3 month penalties. The clause with every lender is 3 month interest penalty or IRD whichever is greater!

With that said, we can mitigate most of our clients from having an IRD penalty by discussing and planning for the right mortgage product (rate included).

One way to ensure a 3 month interest penalty is to go with a variable / adjustable rate mortgage. The catch is that not everyone can qualify for a variable / adjustable rate mortgage.

Ultimately it comes down to discussing a clients needs and some future planning to make sure options are presented, not just a rate! As we can see.. NOT ALL RATES ARE THE SAME (even if the same percentage)!
Tim Lacroix | 403-648-1541
Mortgage. Made Easy Experts
Kardia Mortgage Inc

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