Buying a home is one of the biggest financial decisions that you will ever make.
Make sure you're ready by evaluating your current financial situation. Before you submit a purchase offer, it's important that you plan ahead and are prepared for the various expenses that homeownership entails. Step one? Talk with a mortgage broker.
How a Mortgage Broker Can Help
A mortgage broker is hired by a home hunter, like you, to help locate and review potential mortgage products. He or she will assess interest rates and locate competitive terms based entirely on your financial requirements. Once you've found a product that fits your needs, a mortgage broker will help guide you through the pre-approval process so that, when it comes time to make an offer, you're ready to move fast.
Working with a mortgage broker will save you time, money and hassle. Why stress out over rates and terms when a mortgage broker can provide you with simple, straightforward advice? Contact a certified Canadian mortgage broker today for fast, efficient and private financing advice.
Understanding Your Mortgage Options
The world of mortgage products can be confusing, especially for first time home hunters. The following is a brief overview of just a few of the products available to you:
Fixed Rate Mortgage
A fixed rate mortgage has an interest rate that is fixed (i.e. never changes) for the entire term of the mortgage. As time goes on, more of your mortgage payment will go directly towards the principal of your mortgage and less will go towards interest. A fixed mortgage rate gives you 100% certainty that your interest charge will not change over time.
Variable Rate Mortgage
A variable rate mortgage has a floating interest rate. This means that, if interest rates go up, more of your mortgage payment will go towards covering interest charges. If interest rates go down, more of your payment will go towards the mortgage principal. Variable mortgage rates usually have a lower interst rate than a fixed mortgage; however this rate could fluctuate at any time.
Poor Credit Mortgages
Bad credit doesn't have to prevent you from purchasing a home. Poor credit mortgage products are designed to help individuals overcome their credit history and purchase property. Applicants will need to meet a number of requirements prior to qualifying for this type of financing. Review this article for more information or contact your mortgage broker.
For additional mortgage information and advice, visit the Financial Consumer Agency of Canada website. HomeSort users can also contact a FamilyLending.ca mortgage broker for personal help and practical guidance.