Most young people dream of owning their own home. Many also face the prospect with some trepidation. Your first-time home buyer mortgage is, after all, one of the biggest financial commitments you are ever likely to make. The decisions that you make now can have far-reaching implications for a very long time. The licensed mortgage brokers at Certified Mortgage Brokers Mississauga have been helping young people to make these decisions for years.
Before you buy, there are a number of questions that you should answer.
What can you afford? Buying a home comes with many hidden costs not least of all property taxes, maintenance and utilities. You need to make sure that you have the funds to cover these. The joy of owning your own home can be quickly undone under the burden of growing expenses.
What is your debt to income ratio? In total your debts should not make up more than 40% of your income and housing no more than 32%. This will put limits on the property that you can afford to buy.
Your mortgage broker is trained to help you to navigate the various terms and conditions that pertain specifically to mortgages. Understanding these and applying them to your current and future financial plans and lifestyle choices could save you loads of money in the future.
He can work out for you exactly the mortgage for which you will qualify and the resultant repayments. He could even get you pre-approved to give you certainty and to hold the interest rates while you go house hunting.