In an increasingly competitive mortgage market you start to see the banks push mortgage products that will give them an edge over their competition. They will offer any incentive they can to get you committed to a mortgage for as long a term as possible.

With cash back mortgages they offer to give you 5 percent of your mortgage amount as cash back.

What the bank won't tell you when you renew or refinance your home is that they are giving you a higher rate of interest than new customers.

Most people believe that if you are loyal to one bank, pay your mortgage on time, and keep all your other business such as investments and insurance with that bank that you will reap the benefits of lower rates but in reality the exact opposite is true.

If you are thinking about purchasing a new home be aware of the difference between a pre-approval for a mortgage and an actual approval. Most people are unaware of what the difference is between the two and not knowing can end up ruining your life financially.

A pre-approval letter is something you secure from a lender in order to go house hunting.

When most homeowners are thinking about refinancing or renewing their mortgage the first thing that comes to many peoples mind is the interest rate. Most people are curious about what the best interest rate is, and although this is an important part of the mortgage it is not the only important element. In this article I will attempt to illustrate a few important factors you should consider when shopping for a mortgage, as well as show homeowners how to avoid some common pitfalls.