Buying a home for the first time when you’re Canadian is a unique experience. There’s now a dizzying array of options for borrowing: private mortgage lenders, second home loans and home equity loans, they can all be confusing! If you want to get a good deal and understand the contract you’re entering into for the next 30 years, you need a mortgage broker. Here we’re going to go through what you need to know about home mortgages.
Are You Ready to Buy a Home?
Before you start shopping for mortgages, you need to ask yourself if you’re really ready to buy a home. Is your credit in need of repair? If so check out our page on debt consolidation. Do you have steady employment, or do you have a job that is hard to prove income (self-employment or small business owners for example)? With a mortgage broker you’ll have a helping hand to prove your income and will make the mortgage process so much easier.
What Home Should You Buy?
While you might love the look of one home, you’re going to want to look at many different homes. Do you want a neighbourhood where you can walk around or do you want the ultimate self-sufficient condo? These are the kinds of things you’re going to have to take into consideration to make sure you get the right home. Since most home mortgage rates run between 15 and 30 years this is going to be your home for a long time to come. Make sure you can love it and live in it.
The Home Mortgage Process Explained
You need to shop for your home loan BEFORE you start looking at houses. A mortgage broker will help you find a great rate and a good amount that gives you breathing room to find your dream home. A real estate agent will work from there; knowing your budget helps you save money applying for homes and having home inspectors to come out. You’ll also know that a house is just out of your range and won’t have to waste time thinking about what could have been.
Once you’ve been approved and sign the papers, you own a house! You’ll have to pay your loan on time or you may face penalties. Working with a mortgage broker you can make sure that the terms of the agreement are fair and sensible; there are many terms that can make little sense and come back to bite you later. Prepayment penalties charge you more for paying ahead of time, and balloon payments blow up your loan payments to insane heights when you’re ready to close it out.
Is a Home Mortgage Right for You?
If you need money for the down payment on your house, you need a home mortgage. There’s just no way around it, and you’ll be able to get into the home of your dreams. With the help of a mortgage broker you’re going to be able to get a fair rate and pay off your home in a shorter amount of time.