What you need to ask your mortgage broker

Choosing the right mortgage is complicated and you need to evaluate the pros and cons of each mortgage product. The mortgage broker has the required knowledge to help you in finding the right mortgage for you. But to help you find the right mortgage you need to ask your mortgage broker the right question. Here are some questions you need to ask your mortgage broker.
a) Find out if the mortgage that you taking has a ‘payment holiday’ option. Not all loans are same and if you are facing a difficult situation will the lender give you a payment holiday. Of course, if the lender allows you a tax holiday he will charge you interest for that period and your dues will be recalculated. b) Most companies don’t entertain excess payments as they get less interest from you. Also find out the excess money that you can repay. Some companies restrict the amount that you can repay which can be either a percent of the mortgage amount or a fixed amount. So make sure the mortgage does not impose any restriction on overpayment.
c) Find out how interest is calculated on the amount borrowed. Some companies charge interest either daily or on annual basis. Interest calculated on annual basis is lower when compared to interest calculated on daily basis. So it is important that you check not only the rate of interest but also how interest is calculated. So make sure you ask the right questions both your mortgage and brokers to avoid problems in the future.