Moving is never an easy decision, and the process is far from easy as well. Along with being a far from easy process, it is also a lengthy process, so we are here to lend you hand by giving you 5 Steps to the Best Mortgage. Hopefully these steps can be helpful to you finding your new home.
1. Mortgage Down Payment – make the largest down payment possible; and if you are a first time buyer, be aware that you can use up to $25,000.00 of your RRSP’s toward the down payment. A larger down payment will save you money in the long run as you will be borrowing less (a smaller mortgage) and you will also be able to save money on the cost of mortgage insurance.
2. Amortization period – set your mortgage up with a shorter amortization period, the shorter the loan repayment period, the less you will pay in interest.
3. Lump Sum Payments – Find out what type of prepayment privileges your mortgage company has. Making lump sum payments periodically will reduce your principal and your long term interests costs.
4. Pay Often – ask your mortgage company for a comparison of long term interests cost based on monthly, weekly or bi-weekly payments, and you will see how much interest you will save with weekly or bi-weekly payments versus a monthly payment
5. Get Information – make sure you do research and speak to a few mortgage brokers. Obtain information on the best mortgage rates, mortgage terms and mortgage options. Get as much information as possible and make the right decision for the best mortgage for your family.