Fixed or variable? Compare with clarity

The mortgage stress test is a federal rule that requires you to qualify at a rate higher than your actual contract rate. This ensures you can still afford your payments if rates rise. It's a crucial factor because it determines the maximum mortgage amount you can be approved for, which directly impacts which homes and rates are available to you.

It depends on your priorities. Big banks offer a wide range of products and national accessibility. Credit unions are member-owned, often providing more personalized service and sometimes more flexible qualification criteria. A mortgage broker is an excellent choice as they can shop your application to both banks and credit unions to find the best fit for your unique situation.

Not always. A mortgage with the absolute lowest rate might come with restrictive terms, such as very high prepayment penalties, no portability options (the ability to take your mortgage with you if you move), or limited customer service. It's essential to compare the features and flexibility of the mortgage, not just the interest rate.

Prepayment privileges are options that allow you to pay off your mortgage faster, saving you thousands in interest. They typically come in two forms: the ability to increase your regular payments (e.g., by 15%) and the ability to make annual lump-sum payments (e.g., up to 15% of the original principal). Generous prepayment privileges are a key feature of a high-quality mortgage.