Betty Druxman

When shopping for a mortgage, it’s easy to get drawn in by the lowest advertised rate. After all, who doesn’t want to save on interest? 

But there’s more to a mortgage than just the rate, and focusing solely on this number can sometimes mean paying more over the life of the loan. 

Here’s why the lowest rate may not always be the best choice—and why working with a mortgage professional can help you find the right fit for your unique financial situation.

1. Understanding mortgage terms

A mortgage’s interest rate is only one aspect of the overall agreement. Different mortgages come with various terms, repayment structures, and penalties. Low rates may sometimes be “teaser” rates that adjust after a set period, or they may require a high-ratio mortgage insurance premium, which adds extra cost. Fixed and variable rates, for example, offer different benefits depending on your financial goals, and a very low variable rate may not suit someone looking for payment stability.

Some mortgages come with steep penalties if you decide to break your term early. For instance, a lender with a lower rate may also impose hefty charges if you need to refinance or sell your property mid-term, which can be a big factor for borrowers who anticipate lifestyle changes within the next few years.

2. Flexibility and prepayment options

Some low-rate mortgages have limited flexibility, which may not be suitable for everyone. Prepayment options, for example, allow you to make extra payments or increase your monthly payments without penalties, helping you pay down your mortgage faster. Mortgages with rigid terms might limit your ability to pay down your principal early, locking you into the agreement.

Mortgages with slightly higher rates sometimes come with the added benefit of generous prepayment terms, meaning that even if you’re paying a bit more in interest, you can save on the total cost by reducing your principal more quickly. Being able to pay off your mortgage early or make lump-sum payments can be a great advantage if your financial situation improves or you receive a financial windfall down the line.

3. Portability options for future plans

Another factor to consider is whether a mortgage is portable. This feature allows you to transfer your mortgage to a new property without paying a penalty. If you’re considering a move in the next few years, a portable mortgage can provide flexibility. Often, the lowest-rate mortgages lack this feature, which could mean penalties or having to requalify when you move.

4. The value of guidance

The best mortgage aligns with your financial goals and lifestyle. While a low rate may sound appealing, a mortgage professional can help you see the full picture and tailor solutions that truly meet your needs –– saving you time, stress, and money.

What is the difference between a General Power of Attorney and an Enduring Power of Attorney? 

You may have heard the terms before and think they are the same but there is a difference. A general power of attorney is an authorization that provides the appointed adult person (known as the attorney) with either general or specific powers to act on behalf of the person (known as the donor) to handle legal or financial obligations. The authorization may be specific such as selling a car only for the donor or it can be all-encompassing.

An enduring power of attorney allows your POA to still act on your behalf in all outlined matters even if you lose mental capacity. 

Once the donor passes away, the power of attorney ceases. If there is a will, an administrator or executor/executrix of the estate steps in. This may or may not be the same person as the POA. 

Select trusted people to handle your affairs and honour your wishes. 

For 2023 I am pleased to have earned a Silver Donor level with the Manitoba Realtors Shelter Foundation which provides monies to housing-related charities across Manitoba. 

Housing makes such a huge impact on our overall health, mental and physical well-being and security. Do not take the roof over your head for granted. Many people would happily trade places with you!

Housing is a human right in my opinion.

I am proud to share that I earned a Bronze Award from the Winnipeg Regional Real Estate Board for 2023. Thank you for choosing me to be 'Your Friend In Real Estate'!

2023 GOLD DONOR ~ I am pleased to learn that I earned a GOLD level donor supporting The Children's Miracle Network and THe Children's Hospital Foundation of Manitoba. A donation is made with each sale. The funds stay here in Manitoba and my office, RE/MAX performance realty is once again, the top supporting office in Manitoba. Today, we watched this video about Pacey, one of the many children who unfortunately require the services of The Children's Hospital. Grab a box of tissues, and please watch his story here > https://youtu.be/3nfOdhRQUOc?feature=shared. What a trooper. As it's been said, not all heroes wear capes. I wish Pacey and his family a bright and healthy future.

Welcome to our Real Estate Blog! Here you can find timely updates of my latest properties, open houses, just solds and much more.

Whether you are interested in buying or selling real estate, I am here to help guide you every step of the way.

If you have any questions about real estate from home evaluations to mortgages to searching for properties in your area, don't hesitate to contact me today!