Purchase A New Home Can Be Overwhelming
Buying a new home is an exciting and a life-changing experience. It is one of the biggest financial and lifestyle decisions that you will make in your life-time, and it is therefore necessary to get the help and the assistance that you need.
To begin with, it is of utmost importance to be educated about mortgages when considering purchasing a home. A mortgage is a loan that uses the home you purchase as a security, and is registered as a legal document against the title of your property. The most common aspects of a mortgage that need to be understood are:
- the principal, the amount of the loan;
- the interest, the amount the lender changes for the funds;
- the amortization period, the actual number of years that it will take to repay the mortgage loan in full;
- the term, the length of time for which a mortgage agreement exists between you and the lender;
- the maturity date which marks the end of the term;
- and options which let you tailor the mortgage to fit your personal needs and circumstances.
Next on the list is to be educated in the types of mortgages that are available. There are two basic types of mortgages, Conventional and High Ratio Mortgage. Conventional mortgage does not exceed 80% of the property value, where as the High Ratio Mortgage exceed the 80% of the property value.
The next big factor that comes into play when considering purchasing a new home is your financial condition and the big question this poses is, how much can you realistically afford? This is determined by two factors, your down-payment and your ability to carry mortgage debt. Your down-payment is determined by the amount of money you own from your own assets, and at-least 5% of the total purchase. When you have greater assets and a higher down payment, it can mean that your monthly payments of the mortgage debts will be reduced or otherwise, you can pay off your loan at a faster rate. Your ability to carry the mortgage debt is determined by a simple two method system used by lenders which determines the mortgage amount that you can comfortably pay back based on your income. Once these two factors are determined, it is easy to determine the size of the loan you can handle, which of course depends on the interest rates and amortization periods.
The next few steps involve working with the mortgage broker, getting approved, applying for mortgage and mortgage insurance, and are quite easy after making it over the big walls.
Therefore, before considering buying a new home, it is necessary to self reflect upon some of the most important questions. Is home ownership right for you? Are you financially ready? Which home is right for you? Are you ready to go through the work involved during the buying process? Do you know about mortgages and the types of mortgages that are available?
After answering these questions and deeming yourself as ready after having done some research of your own, it is of great importance to consult a mortgage broker. As an Ottawa mortgage broker, I can assist you and help you take a realistic look at what you can afford and work out an action plan. Like most people, your purchased home will probably be financed with a mortgage loan. As a mortgage broker, I have access to a wide range of lenders, and will in shop around in order to attain the best possible mortgage to fit your needs, without additional costs.
As an Ottawa mortgage broker, it is my job to provide you with the complete and thorough assistance and guidance that you need in order to make your dream a reality.
Just take 2 minutes to fill in this simple online form with your details and click submit, and I will be more than happy to help find you a mortgage solution that best suits your requirements.
Please contact me today to answer all your questions.