CTV News - Mortgage Minute April 30
Ottawa Mortgage Broker Frank Napolitano stops by CTV Ottawa to discuss multi-tiered mortgages, and what to be aware of if you are considering one.
Click here to watch the full video from CTV News.
On this week's Mortgage Minute, Frank takes some time to discuss a product lenders are starting to promote aggressively - multi-tiered mortgages. This type of mortgage would, in essence, split the mortgage into three parts, a one, a three, and a five year term, each with a different mortgage rate.
Borrowers should be aware of these mortgages for a few reasons. Most importantly, if one would want to refinance or change lenders after the one year term is up, it would involve paying hefty penalties for both the three and five year terms. Although the rates for the one year terms on these tiered mortgages is normally attractive, Frank lets viewers know that if they shop around, they are likely to find they are better off locking in for a five or ten year term.
For more information, talk to an Ottawa Mortgage Broker.