Totally agree about smaller lenders. I remember when I was buying my first rental property, the big banks wouldn't even glance at me twice—too many boxes unchecked, I guess. Ended up going with a local credit union. Sure, the rate wasn't amazing, but they actually listened and made it happen...
Smaller lenders are definitely underrated. When I bought my place, I shopped around like crazy—big banks were all about ticking boxes, and I didn't fit their neat little mold. Ended up with a smaller lender too, and honestly, the slightly higher rate was worth it just for the flexibility and personal attention. People obsess over rates, but sometimes paying a bit more upfront saves you headaches down the road.
"People obsess over rates, but sometimes paying a bit more upfront saves you headaches down the road."
Totally get your point about flexibility being worth a premium. I've seen investors chase the absolute lowest rate only to get stuck with rigid terms that cost them dearly when situations changed unexpectedly. Still, with mortgage rules tightening up now, I'm wondering if smaller lenders will be forced to become stricter too. Might we lose some of that flexibility advantage we've been enjoying? Curious how this will shake out...
I hear what you're saying about flexibility, and normally I'd agree—it's definitely saved my bacon a couple of times. But honestly, when I refinanced last year, I went with a smaller lender offering a super low rate, even though their terms were a bit stricter. At first, I was nervous about losing that wiggle room, but it actually forced me to be more disciplined with my finances. Funny enough, having fewer options made me plan better and stress less.
A buddy of mine went the opposite route—paid extra upfront for flexibility—and ended up never using any of those perks. He jokes now that he basically paid for peace of mind he didn't need. Of course, hindsight is always 20/20, right?
With these new mortgage rules tightening things up, I'm thinking smaller lenders might actually lean into their niche even more. Maybe they'll double down on competitive rates or find creative ways to offer value without the traditional flexibility we've gotten used to. Sure, some might get stricter, but others might see this as an opportunity to stand out by offering something different.
Guess what I'm saying is, flexibility is great, but it's not always the best choice for everyone. Sometimes a straightforward, no-frills deal can be exactly what you need—even if it means giving up some of those safety nets. It'll be interesting to see how lenders adapt to these changes...
I had a similar experience with a client last year—he insisted on paying extra for flexible terms, convinced he'd need them. Fast forward 18 months, he hasn't touched those options once and jokes he's funding his lender's Christmas party... hindsight indeed.
