In the last years, the mortgage domain has been through a series of changes and this has made it difficult for home owners to make the right decisions. Today, they are so many lending products that people have to understand their options clearly before reaching a decision. No matter if you are someone who just wants to buy their first home or you want to generate equity from your existing home in order to fund your retirement, the decisions that you will need to make will be of the utmost importance.
The choices you make can depend a lot on your current financial situation and the stage that you have reached in your life. It is important to get the advice of a professional mortgage broker, according to Stefan Krepski at Capital Mortgages in Ottawa. If you receive the proper advice, you can understand which are the correct features and benefits for your particular situation. May it be refinancing an existing home or just purchasing your first home a mortgage broker can help!
First-time home buyers usually have a long learning curve, as the mortgage process may be something new to them. Stefan says that the secret for them can be to understand the way investment fits their needs from a financial prospective. First-time home buyers usually have other life events to focus on when they are purchasing a home: family and career changes, marriage, etc. They have to reevaluate their financial priorities, and this also involves any debt they may have or any future plans.
First time purchasers should look for what their finances can manage and any additional cost that is involved in home ownership. Common things that matter can be mortgage rates and terms, but also closing fees, mortgage insurance charges for high-ratio mortgages and land transfer taxes. Flexible terms can also be considered, along with any option related to pre-payment privileges and home equity lines of credit, as this could provide advantages in the long term.
If you have built up equity in your home, the features that you look for in a mortgage will be very different. If you have a higher income, you can benefit from payment flexibility. There are mortgage options like cash-back, which can be useful for covering the costs of moving and the renovation of a new property. Accelerating mortgage payments and decreasing the costs of interests can be possible if you manage the finances properly. The current equity can be transformed into a line of credit, which can be used to pay for a vacation property or for the education of your children.
Cash flow can be managed in retirement better if Canadians pay their debt right before they retire and become mortgage free. Once a mortgage is paid, things become different and decisions begin to be based on lifestyle instead of being based on finances. There are various factors that come into play: geographical location, your capability of maintaining your property and the need for freeing up funds to improve your lifestyle. Canadians have to work with a mortgage broker who can help them understand how cash-flow and expenses have to be managed for being able to reach the right decisions. In this way you can be sure the best solution is used for every stage of your home ownership.