Often people say ‘Don't pay your landlord's mortgage for him' or “Build equity for yourself instead of throwing your money out the window.”
Buying a home is one of the biggest investments you will make, so it's important to make a decision that is right for you, whether that is to rent or to buy!
The best way to avoid paying more than you can afford is to be prepared. Before you begin to look at homes, meet with your mortgage broker.
They can calculate your ‘debt service ratio' which will determine how much you can actually afford based on your income and the amount of debt you have.
It's easy to get caught up in the excitement of purchasing your own home. Keep in mind that there are costs related to most home purchases that are not often thought about, and that these costs might alter your maximum affordable price.
So it's good to keep them in mind when you are working out your budget.
Shopping for a new home can often be a confusing process for homebuyers, especially when you are unsure of what you can afford. Obtaining a pre-approval is one of the easiest ways to eliminate confusion.
It lets you know exactly how much you can afford and allows you to shop with confidence.
Your home will likely be the biggest purchase you ever make, and with so much at stake, it is crucial to have knowledgeable professionals advising you along the way.
A mortgage broker and a REALTOR can guide you through the successful search and purchase of a home.
Your mortgage broker will sit down with you to review your financial picture, including your sources of income, debt service ratios, your creditworthiness, and your downpayment.
They can help you determine how much you qualify to borrow, what your monthly payment is, as well as help you decide how much you actually feel comfortable borrowing.
Each type of mortgage has slightly different features which appeal to different people.
While an open mortgage gives you the flexibility of making extra payments or paying off the mortgage completely, a closed mortgage has a lower interest rate.
Some people may take comfort in knowing that the interest rate will not increase during the term of a fixed mortgage, but others may accept fluctuations in their variable rate mortgage in exchange for potential long term savings or the chance to pay their mortgage faster.
The right mortgage for you is the one that best matches your overall comfort level and fits with your income and lifestyle.
A mortgage is a mortgage, right?
You may want a flexible payment feature which allows you to make an extra payment or skip a payment. Or maybe you consider portability important when you sell and want to transfer your mortgage to the new purchase.
Want to prepay your mortgage? A mortgage broker will thoroughly analyze your needs and help you find the mortgage that is right for you.
When you're entering the world of real estate and buying and selling property, you want a professional who puts your best interests first.
As a licensed professional, a mortgage broker is there to answer all your questions, provide options and assist you in picking a mortgage product that best suits your needs.