Buying a home is bound to be one of the biggest purchases and investments that you’ll make in your lifetime. If you’re purchasing your first home, there a few important things to keep in mind and take into consideration before you begin the application process.
If you’re considering mortgage options, Kelowna’s top mortgage brokers will give you the best guidance, interest rates, and options. We’ve compiled a list of the top 4 things to consider when getting a mortgage in Canada. Contact us for further information and to begin your mortgage application.
1. Finances and Living Expenses in Kelowna
Your current income or salary will dictate if you’re approved for a mortgage loan, and how much you’ll be approved for. It’s true that most careers will lead to more lucrative positions and higher salaries, but that isn’t taken into consideration. It’s what you have and what earn the day you apply that matters. Your current finances will reflect a mortgage you can afford.
Before you begin looking at housing and mortgage options, estimate your monthly mortgage budget, including housing costs such as insurance, maintenance, property taxes, and utilities. This will give you a rough idea of what you can afford.
2. Your Canadian Credit Score
Your interest rate directly correlates with your credit score. Maintaining and building excellent credit demonstrates your financial responsibility and security. Making small purchases on credit cards and paying them down monthly is an excellent way to build a solid credit score.
Lenders reserve the best loans and best interest rates for clients with good credit scores. If you’re wondering how you can get the lowest possible interest rate, take a look at our blog How to Get Your Best Possible Mortgage Rate, and speak with our mortgage brokers at John Antle Mortgages for the best tips.
3. Mortgages: Mortgage Brokers or Banks?
The natural assumption is that banks are the best way to secure a mortgage. However, a mortgage broker can potentially save a client thousands of dollars while providing better rates, mortgage options, exceptional customer service and mortgage insights.
Mortgage brokers work for you and have the flexibility of finding the best rate and option for your unique situation. Most people report that mortgage brokers offer them better rates.
Kelowna’s top mortgage brokers at John Antle Mortgage specialize in offering mortgage solutions that go beyond the bank. We’ve got 5 Reasons To Use a Kelowna Mortgage Broker Instead of a Big Bank if you’re looking for more details and advice.
4. Mortgage Payment Plans, Types & Terms
There are a several different mortgage options. Your mortgage broker will secure the best options and rates for you, but doing some research and knowing the different options, such as a 30 year fixed rate, an interest only home loan, or a hybrid mortgage will help you understand your options.
Mortgages are generally 5 years, then they are refinanced at a different rate. There are 10 or 7 year mortgages as well. Longer mortgages mean higher interest rates. Depending on the current interest rate environment, you might want to hold on to the proposed interest rates for longer at the time of your mortgage.
Weekly mortgage payment are better than monthly payments in the long-run. Weekly payments will reduce your amortization period, which is the period of time it takes you to pay back your loan, by months or even years. The faster you pay your loan back, the less interest you’ll pay.