Why interest rates are not the only consideration

The common misconception is all mortgages are created equal –  the only piece you have to pay attention to is the interest rate.

 That couldn't be further than the truth.

In fact, if you consider the mortgages of the five big bank – RBC, BMO, TD Canada Trust, Scotiabank and CIBC – the only commonality is the interest rate. The 20 or so pages that make up the rest of the mortgage document are completely different.  

Mitigation starts before choosing a mortgage

Last week, CBC's Go Public reported on an Edmonton couple that were shocked to learn their bank wanted a $17,000 payout penalty to end their mortgage early.

Just days earlier, a B.C. mortgage broker posted a client's $26,000 payout statement from another bank on Facebook that went viral.

And in July, a B.C. Supreme Court judge certified a class-action lawsuit against yet another financial institution for unfair payout penalty practices.