Finding a Mortgage - Top Ten Tips

In the last year the economic downturn has changed the face of the mortgage industry some claim for good. Banks and other lenders have cut mortgage lending severely and finding a mortgage is no longer an easy task.

Buying a house is one of the biggest purchases we make in our lives and picking the right mortgage is essential. Here is the conundrum: fewer lenders mean lesser choices, so in these tough economic times how do you still get the best mortgage deal. Below we will provide you with 10 valuable tips that will help guide you to your dream home and help find you a suitable mortgage.

1. Do your research well

There are some really good mortgage brokers that will tailor-make a suitable mortgage plan for your needs. However, before you go to one of these brokers do a little research on the internet to see what your options are, in addition, this gives you a better understanding of how things work.

Mortgage Top 10 Tips

1. Do your homework

If you already have a mortgage, dig out your documents and find out more about the product you currently have. It’s not enough to just know what your monthly payments are. Find out what rate you are on, when it’s up for renewal, the penalty fee to break your mortgage, and the restrictions for changing your mortgage rate (i.e. the conversion privileges for moving from a variable rate into a fixed rate).

If you are a first time home buyer, make sure you have a complete picture of your total income, debts and expenses so the lender can easily determine how much you can afford. A good rule of thumb is that your mortgage payments should not exceed more then 40% of your net income.

2. Don’t take on more debt than you can afford

It seems that Canadians (and the rest of the world) are taking on too much debt. This is partly a result of record low interest rates which have encouraged consumers to borrow more money. But interest rates have been low for a long time now and as the economy picks up pace, it is inevitable that rates will increase.

Many experts are saying rates will increase in the third quarter of 2013, so be sure to plan for rate increases when calculating how much debt you can afford.

The Top 4 Home Mortgage Refinancing Tips

With the economy and housing market the way they are many people can save a lot of money by getting a home loan refinance. Millions of homeowners will easily be able to save hundreds of dollars per month, their home from being lost, or both. Here are 4 of the most popular and best reasons homeowners get a mortgage refinancing.