Choosing a Mortgage: Broker vs. Specialist
When it comes to financing your home, the mortgage you choose can impact your finances for decades. So let’s break down your options simply and clearly.
Mortgage Specialist vs. Mortgage Broker
Mortgage Specialist – Works directly for one bank or financial institution. They can only offer that lender’s products and rates—so while the process may be more streamlined, your options are limited.
Mortgage Broker – Works independently and shops around with multiple lenders on your behalf. That means more options, potentially better rates, and a more customized mortgage solution.
“Ask your REALTOR® for referrals,” says Steven Levine, a certified mortgage broker with Team Levine in Montreal. “Reputation and responsiveness matter.”
Open vs. Closed Mortgages
Open Mortgage – Offers flexibility to pay off your mortgage in full at any time without penalty. Great if you anticipate a large lump sum (like a bonus or inheritance)—but comes with higher interest rates.
Closed Mortgage – Comes with lower interest rates, but you’re locked in for a term. Paying it off early or breaking the term means penalties.
Fixed vs. Variable Rates
Fixed Rate – Your interest rate and payments stay the same over the entire term. Ideal for budgeting and peace of mind.
Variable Rate – Your rate changes with the market. It can start lower than a fixed rate, but it’s riskier—especially if rates go up unexpectedly.
Pre-Approval: Don’t Skip It
Getting pre-approved before you start house hunting is crucial. It gives you a clear picture of what a lender is willing to offer—but that’s not your actual budget.
You need to factor in property taxes, heating, home insurance, water bills, and utilities. Just because a bank approves you doesn’t mean you should max out.
Think long-term. You want room to breathe—not to be house-rich and life-poor.
For Repeat Buyers
Buying again? These extra considerations can help avoid financial stress:
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Buying before selling? Ensure you can carry two mortgages, even short-term.
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Bridge financing – A short-term loan can help you close on your new place before your current one sells.
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Porting your mortgage – If you’ve got a killer rate, you might be able to transfer it to your new home and save.
Final Thoughts
In Barrie, Innisfil, Orillia, and throughout Simcoe County, smart buyers know this: your mortgage is more than a rate. It’s a strategy.
Know your budget. Weigh your options. Prepare for the unexpected.
Let’s talk about a buying plan that won’t just get you into a home—but keep you thriving in it.
Ready to strategize? Reach out today.
The Shannon Murree Group | Real Estate With Impact – RE/MAX Hallmark Chay helps buyers make confident, informed decisions. Connect with us to build your buying game plan.
Watch for Part 3
Ready to Buy, Sell, Rent, or Invest in Simcoe County?
Whether you’re buying your first home, renting, investing, or preparing to sell, the Shannon Murree Group | Real Estate With Impact – RE/MAX Hallmark Chay provides inclusive, professional guidance throughout Simcoe County. As the only McGillivray Trusted Agent in Simcoe County for Barrie, Innisfil, Oro, and Orillia, we offer trusted insight, strong community connections, and a no-pressure approach that puts your goals first.
Let’s connect. Your move matters—and we’re here to make it count.
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