5 Mortgage Tips for Budget Savvy Buyers
In times like today, it is difficult to squeeze in your Canada mortgage payments in your budget and still make both ends meet. Though the mortgage rates are low and the housing market has never looked so good for buyers, the additional burden of mortgage payments makes a lot of people wary of transcending from rent to home ownership. The situation is particularly more difficult for young individuals – with a limited budget and risks of unemployment, it is next to impossible to think about a Canada mortgage.
However, one needs to understand that fitting a mortgage loan in your budget is just a matter of how you tackle your expenses and plan for savings. Explore the following top 5 mortgage tips for budget savvy buyers and maybe by the end of this post, you will be thinking about your first mortgage! Take a look:
1. Research, Research, RESEARCH!
This point cannot be stressed enough. It is never a good idea to go for advertised rates without doing thorough research, or drawing up a mortgage plan from your bank without asking around. Comparing mortgage rates has tons of benefits in the long term and you will be thanking yourself later for this proactive thinking! Research thoroughly about the mortgage rates, terms, amortization and other related factors before you make a final decision.
2. Cut Down Your Debt
Even if you do have a good credit score and sufficient down payment intact, it is never a good idea to sign up for a very large debt that may turn out to be unaffordable in the future. Choose a house that is beautiful, affordable and pertaining to your needs and requirements so that you can ensure a worry-free and relaxed future for yourself and your family.
3. Go for a Shorter Amortization
The amortization period refers to the total amount of time for which your mortgage will last. It is always a good idea to go for a shorter amortization as you can save on a large amount of interest in this way. Ask your mortgage broker for more information about what your payments will be for a particular amortization.
4. Switch from Monthly to Bi-Monthly
Though the payments will get accelerated and you will have to go on a tighter budget, you will save a significant amount of interest and will also build more equity in a lesser amount of time. Paying off your mortgage faster has a lot of benefits and can prove to be a worthwhile decision – do consider it!
5. Get in Touch with the Experts
If you are still unsure about which mortgage plan will work best for you in the long term, don’t hesitate in getting help from a mortgage expert. They will know about the market trends and affordability factor and will guide you in the right direction.
At the end of the day, it is all about planning and saving for a home and Canada mortgage in advance. The sooner you start thinking and planning, the easier it will be for you to make the move!