The one positive we've seen amongst all the economic headlines these days is the historically low interest rates. In fact they're so low that many homeowners are wondering if now would be a good time to switch out of their current mortgage.
Whenever you cancel a mortgage, you are faced with paying a penalty because you are essentially breaking a contract. Now that penalty can be either 3 months interest or an Interest Rate Differential - or IRD - as it's more commonly referred to. The IRD is calculated based on how much your current bank stands to lose - so it can often be quite sizable. Having said that, with rates being so low, we've seen many cases where the savings far outweigh the cost of the penalty, so it's certainly worth analyzing the difference - especially if you only have a few years left on your current mortgage.
For all your real estate services or if you have any questions regarding your mortgage financing, please contact Maria Mak at Sutton Centre Realty at 604-839-6368 , you'll be smiling too!
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