We all want the best mortgage rate we can get, but we should also make sure that the mortgage we end up in works in our best interests. Here are some tips to keep in mind when choosing your mortgage!

Pre-payment options – As interest rates rise, so does the amount going towards interest vs. principal. Pre-payment offers the flexibility to pre-pay a percentage of the mortgage principal before the end of the amoritization period- without penalty.

Smaller downpayment – The best rates are offered to high-ratio mortgages (mortgages with less than 20% down), since they require mortgage insurance and therefore are less risky to lending institutions. Could the lower interest rate justify putting less money down?

Know the penalties for breaking your mortgage – Life happens, and with that sometimes comes an unexpected move. Having to sell your home before the end of its term means “breaking” your mortgage. Knowing what those fees may look like is key; but also obtaining a portable mortgage, which allows you to transfer your existing mortgage to a new home (or even blending it with a new rate) is also helpful.

While simple, these steps can help to save you both time and money along your mortgage journey!