Rates, Rates, Rates… it’s what determines who has the best mortgage, right? WRONG! This is often what borrowers have been conditioned to believe to try to make a complex matter simple in today’s quest for simplicity.

Consider this: lenders are luring customers in their doors by offering slightly lower mortgage, only to make it up elsewhere (such as through unfavourable mortgage terms and fees).

On a $300,000 mortgage, the payment difference between 3.29% and 3.19% ( 10 basis points) only works out to a monthly savings of $16.21 – just $972.60 for an entire 5-year term.

By making one simple shift in how you set your payments up when taking the 3.29% rate, you can actually take 4.6 years off the life of your mortgage – saving you $70,660.62 off the top instead of taking the lower “rate” – as the “terms” are set up in your best interest.

If you simply took the lower ”rate” due to not knowing the “terms”, you could actually end up paying $6,695.59 more than had you opted for the slightly higher rate product that included more suitable terms. These lower rates also come equipped with added fees and unfavourable terms such as prepayment penalties, legal and discharge costs, appraisal costs and portability/blending restrictions.

Remember your AMP works in your best interest and not the lender’s. We make recommendations without bias as we’re compensated equally regardless of whether we place your mortgage with a  bank, trust company or credit union. We are here through the life of your mortgage and we believe in empowering Canadian borrowers to make financially literate decisions so you understand how the recommended mortgage works in your favour based on ALL the TERMS – and bring you closer to mortgage freedom.

Angela Calla is Host of The Mortgage Show on CKNW Saturdays @ 7pm One of Canada’s top Mortgage Experts and AMP of the Year in 2009 by Caamp she can be reached at 604-802-3983 or acalla@dominionlending.ca t: @angelacalla