Most mortgage shoppers navigate their search by seeking out the lowest rate out there. But, experts say, it's the "small print" features of the contract that are also important.
Prepayment privileges allow you to pay down your mortgage faster without penalty. Look for mortgages that allow at least 15-20% annual prepayment.
Portability lets you transfer your mortgage to a new property if you move, avoiding break penalties and keeping your existing rate.
The penalty calculation method matters significantly. Some lenders use a more borrower-friendly method (3 months' interest) while others use a calculation that can result in much higher penalties.
Consider whether the mortgage is assumable, which could be attractive to future buyers if rates rise.
A slightly higher rate with better terms may actually cost you less over the life of the mortgage than the lowest rate with restrictive terms.