Indicators of an Affordable Mortgage
For most people, one of their biggest dreams in life is to own a home. With so many mortgage options available, it can often be confusing figuring out what it means to acquire an affordable mortgage. There are a number of indicators that will tell you if a mortgage is affordable. Below is a list of indicators to help you determine if a mortgage is affordable.
1. Because of the current state of the housing market, lenders are now offering great deals on interest rates. Currently there are deals available where you can get a mortgage with an interest rate of around 5%. Many financial experts recommend acquiring a 15 to 30 year mortgage locked in at a low interest rate. The complete mortgage term could save a homeowner thousands of dollars. Locking the interest rate as a fixed-rate will normally have a term of 15 or 30 years. This will ensure your interest rates will not increase over the life of the mortgage. It is important to remember that the longer the mortgage term, the lower your interest rates. As well, the higher the mortgage that you obtain, the higher your monthly mortgage repayments will be. There are variable rates one can secure with their mortgage, but they fluctuate with the market. If the market is doing well, your interest rates will decrease, but if the economy starts to deteriorate your interest rates will increase.
2. Before applying for a mortgage, you first have to assess how much you can afford. You can determine how affordable your mortgage will be by using an online mortgage calculator. You will enter such information your income which will help determine how much you can actually afford to pay each month. Remember this is a base amount that does not include the cost associated with the purchase of the home. You will also have to put down a deposit. The higher the deposit, the lower your monthly payments will be.
3. Paying a monthly mortgage is not the only expense you have to consider. There will be other expenses such as utilities and home maintenance. It is also important to remember that you will have to consider additional expenses such as closing fees, title fees, attorney fees, taxes, registration fees, monthly homeowner insurance payments, etc.
A mortgage is probably the biggest financial commitment you will make in life. It is important to acquire an affordable mortgage to ensure that payments can be met even if your financial situation changes. Financing your mortgage is a serious life investment. The key to getting an affordable mortgage is to compare quotes from several different lenders to get a rate that is low and will not drastically increase if the market takes a down turn. As well, you should always read the fine print of the mortgage contract to avoid any future unexpected surprises that could affect your monthly payments. With the current incentives now being offered for mortgage seekers, this is a great time to find a great deal on a mortgage.
Whether you’re looking for mortgage rates or great GIC rates, with Meridian Credit Union you’ll have a customized financial plan that makes sense for you. Just for you.
Mortgage FAQ:
Question: Has anyone had a bad experience with reverse mortgage in Canada?
I am considering a Reverse Mortgage on my home. I’ve done my research, but I’ve never heard if anyone has had a bad experience.
Answer: If reverse mortgages in Canada are similar to reverse mortgages in the US, then you shouldn’t have a bad experience with it as long as you do your research. The loans can be pricey if they’re used for short term needs. Also, if you blow all of your money on vacations and non-essentials, that’s probably not the best use of your home equity. However, if you carefully plan and incorporate a reverse mortgage into your overall retirement plan, you shouldn’t have any bad experiences. Its a great product for some people, but its not for everyone.
Question: Can someone tell me about the mortgage industry?
What kind of mortgage loans does Canada have? Where is the best place so I can find a job being a mortgage professional?
Answer: Just about anywhere can hire you as a mortgage professional, as they work on commission and usually don’t get a salary. In the US if you work for a mortgage broker and not a bank, you will need a real estate license. A good way to get into the business is to start as a mortgage processor. That person takes care of the files and makes sure all the paperwork is in there before submitting the loan to underwriting. You can learn what you need to know as a processor, then when you know what you are doing, you can go on to originating the loans as a loan consultant. Beware of scam loan brokers, though. If anything looks fishy, get out of there. You could get in trouble along with the bosses if you work for a company that is doing anything illegal.
Question: Mortgage issue! Is it going to be alright?
So like the idiot I am, for the second time in about 8 months, I’ve forgotten to transfer money from one account to another in time for my mortgage payment coming out. and I’ve done it again today! I call the mortgage company and they said just to call them when it bounces next week and they will send the request again for withdrawal. Is it really not as big of a deal as I think? Last time when the same thing happened I called them the following week when I saw the 45 bucks deduction for it bouncing and they took it out that day.
Answer: You’re going to get dinged for the bounced check fee, so make sure you have enough in your account to cover it.
Bounced checks and late payments aren’t good for your credit score, but as long as you aren’t 90 days behind in your mortgage, the lender isn’t going to do much.
Question: Who has to pay the mortgage?
I’m from Canada and my husband and i have a mortgage. I am not on the deed, property or on the mortgage. My question is; In Canada if we were to get divorced would I be stuck with half the mortgage? Also would I be entitled to half of the money from the sale of the house or not? I don’t want anything from the house am just wondering if I get a clean break from the house with the mortgage.
Answer: If you are not a lendee, then you do not have to. But if the loan is in both of your names, you are equally liable for the loan.
Question: What are my rights….?
I lived with a woman for the past three years, and last week she asked me to leave and will not give me any financial assistance. What are my options? Please bare in mind, I contributed a significant amount to living expenses and mortgage payments my entire time there.
Answer: If you paid part of the mortgage you have a right to the money you paid, unless you never signed the contract for the house/apartment which was being bought. If you paid without your name on the contract then it’s your word against hers and you it’s up to you to decide whether you think that you could make a court believe that you made mortgage payments. If so I would claim for repayment.
As for living expenses, when people live together that is normal. Money invested in property (mortgages) are investments and you have a right to your contribution.
Question: Purchased a house & only obtained old survey/title of house under ex-owner name. how can I get 1 under my name?
I purchased a house in Quebec (Canada) and obtained Mortgage papers, the sale papers that I and ex-owners of the house signed on it as well as the old survey/title of the house which is under the ex-owner name. Was I supposed to have received one under my name? If not, where do I go to get it? How much does it cost?
Answer: If you took out a mortgage for the property, your lender will submit the property change to your area registrar of deeds etc. However, the new deed (at least in the U.S.) remains with the lender until the mortgage is paid off.
Question: Down Payment on House?
How much might I expect to pay for a down payment on a house that’s worth about $750,000 in the Vancouver, Canada area? (lower mainland) I’m thinking 10 year mortgage
Answer: I know for 30 year it’s usually around 10% or 12%. For a 10 year, you’re probably looking at 30% or more down. It mostly depends on your income and what sort of mortgage you qualify for.
Question: How easy/hard will it be for me to get a mortgage in Canada?
I am considering emigrating to Canada, and would much rather buy a property than rent. Would my lack of credit history in Canada affect my eligibility for a mortgage? I will have plenty of cash for a house deposit and expect to earn at least $60k per year, but don’t know if this would be enough to persuade lenders.
Answer: It really depends on where you are moving to. Unfortunately, you usually have to be working steadily at a job for 1 year before a bank will look at you. There are other financing options though.
If you have the down payment, they may look at you. Vancouver housing starts at $500,000.00