When you think about your future, is home ownership one of your goals?
Your home will be the biggest purchase you make in your lifetime. With that much on the line, ensuring you get the best rate and most favourable terms on the mortgage that allows you to buy a home is essential. In many cases, consulting a mortgage broker can help you achieve these goals, and potentially alleviate some stress along the way. And what’s more, they do that job at no cost to you.
If buying a home is on the horizon for you, here are our top tips to keep in mind when you’re thinking about your mortgage.
Make a mortgage broker your first call
Mortgage brokers are licensed professionals who have access to multiple different lenders. This gives them the ability to find the mortgage that best fits your financial situation.
It’s easy to fall in love with your dream house, but the key to making that dream a reality is knowing your price range before shopping. Just like you budget for everyday purchases, you’re going to want to give yourself a price range for your new home, including the associated costs. Talking to a mortgage broker first and getting pre-approved is not only a key step in the process, but it can prevent disappointment if you have your eye on a property outside of your price range.
You’re in the right place! Doing research in advance of such a large purchase is crucial. Making sure you have a working knowledge base will make the conversation with your mortgage broker go even more smoothly. While having a low rate is important, other factors, like the prepayment terms and penalties are just as important. There’s a lot of information available from reputable sources, so make sure you’re walking in with your eyes wide open.
Bring that inquisitive spirit when you meet with a mortgage broker. Buying a home is a big deal, and you’re bound to have questions about the process. Ask them. That’s what a mortgage broker is there for. Make a list of what you need to know before meeting with your broker so you know everything is covered, and don’t hesitate to follow up if you think of something else. It’s easy to shy away from asking questions for fear of appearing uneducated, but we challenge you to fight that fear. We learn far more by asking questions than staying silent, so ask away!
Finding “the one”
How do you know how to find the right mortgage broker? Ask for a recommendation from friends or family. Check out their social media. Get a feel for their personality. Try to find someone who typically works within the area you want to live – they’ll have a wealth of knowledge about the neighbourhood you have your eye on.
Ready to talk to a mortgage broker? You can find a broker in your area through our friends at Mortgage Professionals Canada.
The views and opinions expressed in this column are those of the contributor and do not necessarily reflect those of Equitable Bank. Any information provided is for information purposes only and Equitable Bank makes no representations as to the validity, accuracy, completeness or suitability of any content. You should seek the advice of a qualified professional or undertake your own research before making financial decisions.