MORTGAGE Blog & ARTICLES
Preparing for the First Mortgage
The mortgage rates in Canada are relatively low. Apart from it, the housing prices also soften from one province to another. For the majority of people interested in seeing a mortgage broker, it is best to look for the housing market in Canada. They should ask themselves if they are able to afford buying a new home.
There are many different steps that need to be taken by novice buyers. By means of considering these steps, they are able to assess their preparedness financially. Thus, they can readily commit themselves in owning a home.
Apart from it, they can be completely aware of the many various aspects that are involved in applying for a loan. They can pay attention to the mortgage payments that let consumers start on the right track.
Here are among the things that homeowners should pay attention to:
The Portion of the Income They Need to Spend on the Housing
Most of the homebuyers are not paying attention to their income. They need to specifically estimate their money for other needs. They must also take time to consider their money in paying their mortgages.
They must remember that mortgage payments include insurance and interest. Other things included in the payments are the costs, property taxes and the like. They usually accumulate in the long run. The best rule that applies in the mortgage payments is on keeping the ration of the mortgage debt at one-third.
The Importance of Using Mortgage Calculator
Due to the many home financing products that can be found in the market, consumers have no idea which one to use. A mortgage calculator is a helpful tool for novice buyers. This helps them in determining the monthly payments for every mortgage type. Apart from it, they no longer need to compute the percentage of their income. This is usually calculated that helps them more.
On the other hand, homeowners may have their personal debts as well. These are often found in credit cards, utility payments and auto loans. The debts and housing payments should account for forty percent of the entire household income.
Choosing Between the Mortgages with Various Amortization Periods, Lengths and Interest Rates
The various amortization periods, lengths and interest rates must be considered by novice buyers. The type of mortgage usually has its benefits. They may just find it more confusing.
In understanding more about the amortization period, this is believed to be the period of time through which one has to pay off his or her principal balance. With short period of time, they are able to save thousands of dollars. These are only on the interest payments; however, they may present a huge amount on monthly payments.
Choosing between the variable-rate and fixed-rate mortgages is a difficult task. With the latter, homeowners need to be sure that the monthly payments are consistent. This way, they are helped in making better plan for their finances. The former offers cost-saving advantages on the part of the homeowners. However, the fluctuations in the market could increase the monthly payments unexpectedly.
As long as the homeowners throw their mortgage at the earliest time of their lives, they can save in the long run. The first down payment is the key. By opening your savings account, this helps you in taking that big leap to homeownership!
- Bank of Canada
- Commercial Mortgages
- Company Updates
- Financial Planning
- First Time Home Buyers
- Home Ownership
- Housing Market
- Market Watch
- Mortgage Education
- Mortgage Products
- Mortgage Rates
- New Mortgage Broker Updates
- Notable News
- Personal Finance
- Property Investments
- Real Estate
- Refinance & Renewal Mortgages