Read the early settlement terms of your mortgage

Plans change over the years of a mortgage. You may want to sell, receive a bonus you would like to put towards the loan, or move to another bank. How easily you can do any of this depends on the early settlement terms in your mortgage offer, which are easy to skim past when the focus is on the rate and the monthly instalment. Before you accept an offer, ask the bank to explain partial and full early settlement: how much notice is required, whether any costs apply and how a partial payment changes the instalment or the term. Write the answers beside each offer you are considering. If you expect to sell within a few years, these terms may matter as much as the headline rate. Prepared by Masterpiece Property.