A conversation with a recent first-time caller revealed an amazing opportunity – the potential to save over $30,000 in interest. This particular client was currently in a 10 year fixed rate mortgage, a mortgage product that is less common but had some popularity 4 to 6 years ago. In this particular scenario, this client was currently carrying a mortgage balance of approximately $300,000 and some higher-interest debts that they were carrying from a couple of larger purchases made recently.
There is a little known fact for holders of mortgage terms greater than 5 years – for anyone who is 60 months or more into their mortgage term, the penalty to break their mortgage is limited to a penalty of only three months interest. A three months interest penalty is typically tens of thousands of dollars lower than a typical mortgage penalty. Lucky for this client, they were 5 years into their 10 year fixed rate mortgage term.
Unsurprisingly, no one from their local branch had ever mentioned anything regarding this opportunity. It would only seem logical that the bank would be interested in taking $30,000 in interest from the bank’s pocket and putting it into their client’s pocket, no?
By taking advantage of a fact that your bank won’t tell you, MonsterMortgage.ca found yet another way to help this client beat their bank and terminate their mortgage even faster.
What did MonsterMortgage.ca do for this client?
MonsterMortgage.ca rearranged this client’s current mortgage by consolidating all of their high interest rate debt and by breaking their current mortgage and moving them into today’s historically low rates. The client then kept their existing monthly payment at their current amount instead of decreasing their monthly payments, as they were already planning their monthly expenses around this number. Not only are they no longer paying high interest rate debt, they’re now saving thousands in interest AND paying down the principal even faster. The solution was simple, cost efficient and even more importantly, this client got to keep more money in their pocket, not their bank’s…
When was the last time you had a discussion regarding your mortgage options? Was it with someone at the bank? Or nobody at all? Could you be sitting on a small fortune of your own without even knowing it? Fill out the form above and speak with a MonsterMortgage.ca Mortgage Expert today and make sure you’re getting the edge you need to beat Canada’s largest banks!BACK TO BLOG FEED