Ask Your Mortgage Broker

Your Mortgage Broker Has The Answers

Your Capital Mortgage Broker can effectively point you in the correct direction when trying to secure a mortgage.
Searching the real estate market for a new place you can call home is a tough experience, since it is usually the most important financial obligation made in one’s life. However, you can make it a whole lot easier by talking to a qualified mortgage broker who can advise you throughout the process by providing reliable advice that will help you gain knowledge on mortgages and how they may influence your situation. Here are 4 essential questions that you can ask your mortgage broker that can get you on the right financial track to your new home.

How much must I put as a down payment?
Plenty of first-time home purchasers believe that they must make a substantial down payment in order to receive the best mortgage rates, but this is not always the fact. Mortgage insurances enable first-time buyers to put no more than 5% down and receive identical mortgage rates as individuals who put 20% or more down. Your certified mortgage broker can definitely assist in deciding how much money you should put as a down payment in order to purchase your home, while still successfully navigating your financial budget.

What must be considered for my future?
Research has indicated that about 70% of Canadian citizens would be concerned about their mortgage payments if there was an increase in interest rates, or if a partner lost their source of income. Always keep in mind that the things you can afford at the moment may not be your top priority later in life. Will you be able to make a payment if you take into consideration costs of daycare and parental leave into your monthly finances? What would you do if interest rates increase or you needed to take a job with less pay. Your qualified mortgage broker can take all of these factors into consideration when handling mortgage rates with lenders.

What price can I handle?
The unfortunate fact is that most individuals typically choose their new homes before looking at their financing. It is paramount to determine the approximate amount you can manage before diving into your search of your new home. Generally, overall housing costs, which includes the mortgage principal and the interest payment, as well as housing and heating taxes, shouldn’t be over 32% of your monthly cash flow. Your overall debt load, which includes household costs and various debts like car loans and credit cards, must not be over 40% your monthly financial income. This is where a Capital mortgage broker comes into play. They take a look at all of your income sources and credit report in order to help determine the kind of home that you can ultimately handle financially.

Any particular mortgage type to focus on?
The two most popular mortgage options are fixed & variable. The fixed interest rate is put in place once you sign up for your new mortgage, without any future modifications. However, variable rates may change and adapt to future interest rates in the market. Even though market changes are difficult to presume, your mortgage broker can provide historical information and data regarding the financial cycle, which will help you choose the best option. Your mortgage broker will additionally make sure to assess your financial risks and offer the best option based on your financial situation.