Buying a home is one of the biggest investment you will ever make, but it also means making payments on the mortgage. Being the highest expense and most people struggle to pay off mortgage loans which need not be the case. You can have the best mortgage score while clearing all your debts easily.
According to a study carried out by the Bank of Canada, the debts in an average Canadian household have increased to 70 per cent with mortgage debt being the main contributing factor which has raised a huge concern.
Fortunately, according to mortgage professionals, this situation can be taken care of. They have suggested that the best way to pay off mortgage loan is to avoid incurring other debts until after clearing the mortgage.
Homeowners can get the best mortgage possible which means they will be able to save more and sink into more debts.
Tips for getting the best deal on your mortgage
According to experts, the first step for buyers is to shop around using a mortgage broker. You should never go with the first option you get. Sit down with your mortgage professional and compare different plans and choose one that suits your individual needs. Being able to save even few bucks in your monthly payments will go a long way.
When you get quotes from different companies, look at all the fees charged by the lender and ask for clarification on any policy that is not clear. A mortgage with no fees does not necessarily mean it is cheaper as the fees could be included in the rates.
Secondly, do not make the mistake of believing that you can only get a mortgage from the bank. Banks are only the leading providers, but there are so many other institutions that give out mortgages with even better deals because they are looking to build their clientele. There is also high competition between these institutions which leads to reduced rates and fees.
Mortgage rates, credit requirements, loan to value ratio and payment requirements vary between lenders. To get the best score, compare the available mortgage options and choose one that suits you best and one you can afford without straining.