Date: June 18, 2024

Are you looking for the lowest rate or the lowest payment? πŸ€”

Contrary to popular belief, these are not always the same. ❗

One of the first questions I ask my clients is, “What is your goal over the next 3-5 years with this next mortgage term?” 🏠 Often, I hear, “I want the lowest rate because we want to control our cash flow.” πŸ’΅

So let me explain. πŸ“–
Everyone wants the lowest rate, but a mortgage is more than just a rate, and this is a great time to address that, with over 60% of all mortgages coming up for renewal and many looking for payment relief. πŸ“‰

Let’s assume two lenders have the same rate; how do you decide which lender is best for your situation? πŸ€·β€β™‚οΈ
Here are a few questions to ask your lender (broker): ❓
– What are the pre-payment options? πŸ’Έ
– How are penalties calculated? Did you know that bank penalties, on average, are more than non-bank mortgages? 🏦
– Can I change my amortization? πŸ“ˆ

Nine times out of ten, consumers compare what they see online or what their friends get on their mortgages; however, not all mortgages are the same. 🌐
There is usually fine print online, and the offering isn’t for everyone. πŸ“‹

Let me give you an example of two neighbours who both have the same $300,000 mortgage and are both up for renewal at the same time. They are both working with the same broker and are offered rates from the same lender. Why? 🀨

Bob was offered a 4.99%, five-year fixed rate to switch from his current lender to a new one. His new monthly payment is $2,362.84. πŸ’°

Meanwhile, Karen’s also up for renewal, and she was offered a rate of 5.14% with monthly payments of $1,626.23. πŸ’΅

As you can see, Bob’s rate is lower, but Karen’s payment is considerably lower. What’s the difference here? Is their broker cheating them? NO! 🚫 The reason for the difference in rate and monthly payment is as follows: πŸ“

Bob switched lenders. He took his mortgage and “switched it from lender A to lender B.” He made no change to his 15-year amortization; he kept everything on track as is. πŸ”„

However, Karen wanted a lower payment, so her mortgage was a refinance and not a switch. πŸ”„
Her amortization was increased back to 30 years because cash flow was more important than the rate. So, her mortgage payment is lower, her rate is slightly higher, and her amortization is higher. πŸ“ˆ

Depending on whether you are Karen or Bob, the decision you make has to be the right one for you. In this case, Karen will re-align herself in five years when things are financially better for her, and she can still go down to a 10β€”or 15-year amortization at that time and still make the same finish line as Bob. 🎯

If you’ve been reading my updates, I’ve been saying that each term must stand on its own, and when you realize that, you realize that the only person you are competing with is yourself, your lifestyle, and your expectations. 🌟

If you are one of the 60% Canadians up for renewal this year, let’s connect and review your options. πŸ“ž
Your home is your largest asset, and your mortgage is your largest debt; let’s review your current situation and see if it fits your personal plan. πŸ‘πŸ’Ό

Click here to book a time to connect and review your questions.

Talk soon,


Mortgages can be complicated; we are here to help you make “cents” of it.

We focus on Mortgage Solutions, Period!

To learn more connect with Ana Cruz 905.870.0513 or email at