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Why You Might Want to Reconsider Getting Your Mortgage at a Bank

Mortgages offered by banks come with hidden traps in the form of clauses. If you want to break the mortgage you’ve taken from a bank, you need to prepare yourself to pay a pretty penny. This scenario can be very painful for people who’re facing the brunt of financial crunches and want to get out of a mortgage before it’s up for renewal. They would have to forfeit some of the amount as a penalty.

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Unsplash | Understand all clauses with respect to the mortgage you’re about to take

Under usual circumstances, such a situation would befall only a handful of people. But with the world going through a pandemic, many have had to lose their jobs, hence the need to break their mortgages to make ends meet. On top of that, instead of extending relief to their customers, some banks have pulled their hands away, leaving the customers to their fate.

As a result, several financial experts claim getting mortgages from banks is just not worth it. Let’s try to delve a little deeper into this.

Mortgage Shopping

Most of us look at several options for mortgages before fixating on one with the lowest interest rate. While there’s nothing wrong with that thinking, we need to pay attention to the breakage penalties for such mortgages. Although at the time of taking a mortgage, we may believe that there’s no reason we would want to get out of it before its stipulated time, unexpected things do happen, which can leave us no choice but to break such deals.

This pandemic is an excellent example of the reasons that can suddenly occur, forcing one to break a mortgage. Even if that were not the case, illnesses always need to be considered. A health condition can come up, and we may require funds suddenly. In such situations, we may need to get out of a mortgage.

Regardless of the reason, it’s always a good idea to have measures in place in the beginning so that you don’t find yourself in trouble later on. You can talk to your bank about this and find out what their best offer is. Customers can also solicit the assistance of mortgage brokers to compare different banks and their offers. They are professionals in this field and would be able to offer you some good advice.

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Unsplash | Taking a mortgage broker’s help may be beneficial

Read – Facts about Working with a Mortgage Broker

COVID-19 and Mortgages

With the pandemic ranging across the world, the economy is almost on the verge of collapsing. At this time, a lot of homeowners have lost their source of income, and as a result, their homes. Fortunately, some global financial establishments have come together to understand people’s woes and have agreed to defer mortgage payments. Some banks are giving their customers the option to skip payments as well.

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Unsplash | If you’re having difficulty repaying, talk to your bank to see how they can help

Wrap Up

Many recognized banks are among the first to establish solidarity with those who are struck by the pandemic. They have presented themselves as willing to help their customers during this time. After all, allowing customers to break their mortgage on compassionate grounds is the honorable thing to do.

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