Envision Financial Branch Manager Manjit Lally says mortgages aren’t one-size-fits-all, and an advisor can help you find the best one to suit your needs.

Envision Financial Branch Manager Manjit Lally says mortgages aren’t one-size-fits-all, and an advisor can help you find the best one to suit your needs.

Choosing a mortgage that fits your needs

Mortgages are complicated! Before you sign on the dotted line, make sure the fine print makes sense

What’s the best mortgage in 2021? Envision Financial Branch Manager Manjit Lally says the answer is different for everyone.

“Mortgages aren’t one-size-fits-all, so a good advisor should offer a custom approach,” she says. “Right now the hot topic is rates: variable or fixed? But it’s not just about the rate, it’s also about your needs.”

What are your plans for the property?

What’s your five year plan? Are you going to stay put, or is there a chance you’ll move?

“If you break your fixed rate mortgage in the first three years the penalties are really high, so that might not be a good fit if your plans are uncertain,” Lally says.

You may intend to move to a bigger home when you start having kids, or a smaller one when the kids are done school. You may start off sharing the mortgage with family members — either to help qualify for the loan or because you’re living together. If you expect that living situation to change, discuss it with your mortgage advisor before committing to terms. You should also let your advisor know if the mortgage is for a rental property, not a primary residence, since that will likely affect your commitment to the home.

“Renovations are another consideration. If you choose a fixed rate, you wouldn’t want to touch the mortgage to help pay for renovations. Variable is a better choice if you need to borrow more and prefer to have one payment,” Lally says.

What kind of borrower are you?

A fixed rate mortgage is great if you want to ‘set it and forget it.’ You’ll be able to budget and make plans around regular payments.

“With a variable mortgage the onus is on you to keep up with the market for rate changes, which is great if that’s something you enjoy,” Lally says.

What does the future hold?

“Historically, variable rates have been a better bet, but the market is very unusual right now. Fixed rates are extremely low, and many of our members are taking advantage,” Lally says. “Rates are expected to stay pretty low for the next two to three years to stimulate the economy’s COVID-19 recovery.”

If you just look at the market, both fixed and variable rates are good options for borrowers right now. But Lally says many borrowers shy away from fixed rates to protect themselves from unexpected challenges.

“Life happens, and you may be forced to move. One solution, even if you’re in a fixed mortgage, is a Portability Option. Not all brokers have it, but Envision Financial certainly does. If the borrowers are staying the same, you can keep your old rate and avoid penalties by moving the mortgage from one property to another. Terms and conditions apply, but it’s good to know you have options!”

Get educated!

No matter what your situation, Lally says it’s important to take your time and educate yourself. Take documents home and make sure you understand them, so you’re not surprised by fees.

Find more mortgage tips at envisionfinancial.ca, or book an appointment at a branch near you.

Envision Financial is a division of First West Credit Union.

Financial planningMortgage Brokers

Just Posted

RCMP are looking for “an unknown man who wrapped his arms around” a female youth in Clayton Feb. 26. (Black Press file photo)
Youth assaulted by unknown man in Cloverdale

Mounties looking for ‘tall and thin’ Caucasian man in his 40’s with short dark brown hair

Framed photos of Travis Selje and other items fill the top of a dresser in his bedroom. (Photo: Tom Zillich)
Crown says defence case epilepsy caused fatal Surrey crash fails on balance of probabilities

‘She very clearly had some form of control over that vehicle,’ Crown argues

Alex Browne photo The felling of two mature Douglas Fir ‘eagle trees’ on Oxford Street, just south of Prospect Avenue, in June of 2019, prompted a review of tree management bylaws and policies now before White Rock council. The trees were felled on instructions from City of White Rock staff, who said the work was necessary because they had become hazardous. (File photo)
City of White Rock mulls ‘tree protection’ bylaw

More stringent measures needed to protect canopy – councillor

teeaser
Surrey TEDx talks move online with ‘fast-paced’ event that’s free to watch March 27

Last year’s TEDxBearCreekPark attracted 900 spectators to Bell theatre

Dr. Bonnie Henry leaves the podium after talking about the next steps in B.C.’s COVID-19 Immunization Plan during a press conference at Legislature in Victoria, B.C., on Friday, January 22, 2021. THE CANADIAN PRESS/Chad Hipolito
COVID: 589 new cases in B.C., and 7 new deaths

No new outbreaks being reported Feb. 26

Staff from the Marine Mammal Rescue Centre, passersby, RCMP and Nanaimo Fire Rescue carried a sick 300-kilogram steller sea lion up the steep bluff at Invermere Beach in north Nanaimo in an attempt to save the animal’s life Thursday. (Photo courtesy Marine Mammal Rescue Centre)
300-kilogram sea lion muscled up from B.C. beach in rescue attempt

Animal dies despite efforts of Nanaimo marine mammal rescue team, emergency personnel and bystanders

Gina Adams as she works on her latest piece titled ‘Undying Love’. (Submitted photo)
‘Toothless’ the kitty inspires B.C. wood carver to break out the chainsaw

Inspired by plight of a toothless cat, Gina Adams offers proceeds from her artwork to help animals

B.C. Finance Minister Selina Robinson presents bill to delay B.C.’s budget as late as April 30, and allow further spending before that, B.C. legislature, Dec. 8, 2020. (Hansard TV)
How big is B.C.’s COVID-19 deficit? We’ll find out April 20

More borrowing expected as pandemic enters second year

Passengers aboard Komagata Maru in Vancouver’s Burrard Inlet, 1914 - Library and Archives Canada image
Abbotsford council is asked to rename street in memory of Komagata Maru victims

Most of 376 the passengers aboard ship were denied entry into Canada in 1914

The first of 11 Dash 8 Q400 aircraft's have arrived in Abbotsford. Conair Group Inc. will soon transform them into firefighting airtankers. (Submitted)
Abbotsford’s Conair begins airtanker transformation

Aerial firefighting company creating Q400AT airtanker in advance of local forest fire season

The Canada Revenue Agency says there were 32 tax fraud convictions across the country between April 2019 and March 2020. (Pixabay)
Vancouver man sentenced to 29 months, fined $645K for tax evasion, forgery

Michael Sholz reportedly forged documents to support ineligible tax credits linked to homeownership

Then-Liberal leader Andrew Wilkinson looks on as MLA Shirley Bond answers questions during a press conference at Legislature in Victoria. (Chad Hipolito / THE CANADIAN PRESS)
B.C. Liberal party to choose next leader in February 2022

Candidates have until Nov. 30 to declare whether they are running

After nearly 10 months of investigations, Mounties have made an arrest in the tripping of an elderly woman in Burnaby this past April. (RCMP handout)
VIDEO: Mounties charge suspect for tripping elderly woman near Metrotown in April

32-year-old Hayun Song is accused of causing bodily harm to an 84-year-old using her walker

Most Read