Some mortgages have irritating and costly restrictions that you won’t know about unless you read the fine print or ask a mortgage professional.
– Restrictions on breaking your mortgage before the term is up or before the first three years;
– “Reinvestment fees” (on top of mortgage penalties);
– IRD penalties based on a costly posted vs discounted rate formula;
– Inability to port unless the port is dollar for dollar or the purchase and sale takes place on the same day;
– No or limited pre-payment privileges.
The list goes on…..
Keep a look out for restrictions when comparing mortgages. Some special rates, rate promotions or ‘No Frills’ mortgages are likely to be restricted.