Less than one-third of Canadians fully grasp their home loan details
Only 33 per cent Canadian homeowners admit that they have read their entire mortgage agreement, a recent study by Scotiabank has revealed. Worse, only 27 per cent fully understood the details of their home loans.
The 2015 Scotiabank Mortgage Poll also indicated that 84% of Canadians consider competitive interest rates as the most important factor in selecting a mortgage from lenders and banks.
63 per cent said the next most important factor was the flexible term that will allow them to repay the mortgage at any time without penalty. 60 per cent said they consider prepayment privileges, also without penalty, as the next most important factor.
"Buying a home is both exhilarating and stressful, which is why a meeting with a financial advisor to understand all of the terms and conditions of a mortgage agreement will ensure customers get the mortgage that is right for them," said Scotiabank's David Stafford, managing director of Real Estate Secured Lending.
"Flexible features like prepayment privileges, bi-weekly payments and the ability to port your mortgage can save customers thousands in interest and fees over the long term."