THE PERSONALITY OF YOUR MORTGAGE

Every mortgage has its own “personality” — a mix of features, rules, and restrictions that can cost or save you thousands. Asking the right questions upfront helps you choose a mortgage that fits your long-term plans.

Here are the key questions you need to ask before signing any mortgage contract 👇

1️⃣ What is the penalty to break my mortgage?

A low-frills mortgage may come with heavy penalties, such as a full 12-month interest penalty if you need to refinance, upgrade, or sell.

✔️ penalties vary widely

✔️ low-frills = higher restrictions

✔️ flexibility matters for future plans

Knowing the penalty cost upfront prevents expensive surprises later.

2️⃣ What prepayment privileges do I get?

Prepayment rules differ between lenders and products.

✔️ monthly prepayment options

✔️ annual lump-sum allowances

✔️ limits range from 0–20%

Most borrowers use less than 10%, but having flexibility is still valuable.

3️⃣ Is my mortgage portable?

Portability lets you transfer your mortgage — and your rate — to a new property without penalty.

✔️ essential for move-up buyers

✔️ protects your lower rate

✔️ restrictions vary

Some no-frills or variable products do NOT allow portability at all.

4️⃣ Can I blend & extend or have someone assume my mortgage?

A blend & extend allows you to combine your current rate with a new one when borrowing more.

✔️ avoids breaking penalties

✔️ helpful for renovations or upgrades

✔️ assumption allows a buyer to take over your rate

No-frills products usually block both options.

5️⃣ How long can my amortization be?

Your amortization affects both affordability and qualification.

✔️ longer = lower payments

✔️ shorter = less interest paid

✔️ some lenders cap at 25 years

Low-frills mortgages often limit amortization options.

6️⃣ Can this mortgage be used for an investment property?

Not all mortgage products apply to rentals or investment properties.

✔️ rental rules differ

✔️ higher down payment needed

✔️ stricter qualification

No-frills mortgages often cannot be used for rentals at all.

7️⃣ What happens if I switch from variable to fixed?

Some mortgages only offer “standard rates” when locking in — not discounted ones.

✔️ lock-in rules vary

✔️ some lenders charge more

✔️ flexibility is essential

Understanding this before choosing a variable rate avoids future regret.

8️⃣ How is my mortgage registered?

Your mortgage may be registered as either:

✔️ Standard Charge — easy to switch at renewal

✔️ Collateral Charge — harder to move, often costs money

Collateral charges limit your ability to change lenders without legal fees.

💬 Final Thought

Every mortgage has built-in rules that affect penalties, flexibility, portability, and long-term costs. Asking these eight questions upfront protects you from restrictive terms and ensures your mortgage truly fits your future plans.

If you want help reviewing mortgage fine print, The Frontline Mortgage Group can compare options and highlight the hidden details so you choose with confidence.