If you are considering purchasing your first home and require a first-time home buyer mortgage, working with a qualified mortgage advisor will go a long way toward ensuring you get the right first time home buyer mortgage to suit your needs.
Here are a few tips for applying for your first-time home buyer mortgage:
1. Manage your existing debt
Taking on a mortgage means taking on debt. Before you apply, consider what you can afford and how getting a first time home buyer mortgage will affect your ability to pay your existing debts. Your mortgage broker will take your current debts and payments into consideration and help you figure out how much you will be able to afford to pay on your mortgage.
2. Take all home buying costs into account
Your down payment won’t be your only expense when you buy your first home. Many first-time home buyers make the mistake of forgetting about other expenses such as legal fees and mortgage insurance. Make sure to budget for these other expenses and not just your down payment.
3. Don’t put too much pressure on your finances
Remember that you don’t have to buy a home at the top end of your price range. If you take a lower mortgage than you are approved for, it means you’ll have more money available for other expenses such as utilities, property tax and maintenance.
And with less pressure on your finances, you’ll likely have less stress and will be better able to enjoy your new home.
4. Consider different types of mortgages
Most Canadians automatically go for fixed rate mortgages because they seem to offer more security, but this may not be the best choice for you. If you don’t mind experiencing a little volatility, you might be able to save quite a bit on interest payments by choosing a variable rate first time home buyer mortgage.
Be sure to discuss all your options with your mortgage advisor.
5. Work with a mortgage broker who will compare rates for you
Just because you do your banking a certain financial institution, it doesn’t mean that they will automatically give you the best rate. They won’t.
You probably already shop around to get the best rates on other things, so why wouldn’t you shop around for something as big a mortgage. Even a small difference in interest rates can really add up over time. By working with a qualified professional mortgage broker who has access to many different lenders, you are more likely to get the best rate.
Are you ready to take the first step in home ownership? Call the team at Akal Mortgages today.
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