Buying a home in the Greater Toronto Area is a process not to be taken lightly, and you need assistance from professionals who always have your best interests in mind. This kind of service often isn’t as easy to find as it should be. Mortgage brokers are frequently able to take advantage of first-time home buyers by settling them into mortgages that aren’t as good of a fit for the buyers as is possible. They can do this because often first-time buyers do not understand all of the terminology used within mortgages. This is one purchase that you have to be completely certain of before you sign on the dotted line.
I want you to make the process of securing a mortgage easier and more straightforward for you by laying down here what you need to know when shopping for your first mortgage.
Know the factors that affect your pre-approval
You can be pre-approved for certain mortgages only after every cost associated with a home you are considering is taken into account. This includes the cost of the home, maintenance fees, and property fees. So, to find out whether you will be eligible for a mortgage, you need a solid idea of all of the costs that come along with the type of home you are considering.
Determine whether you need a portable mortgage and whether one is available
A portable mortgage is one that could be transferred to a different house, should you ever decide to move. If you have a fully portable mortgage, you will not have to pay any additional fees to transfer your mortgage over and restrictions will be limited. In some cases, a home buyer will feel absolutely certain that they won’t move before their mortgage is up, while in other cases there is less certainty. Know what your situation is, and read the fine print–some mortgages claim to be portable, but they have so many restrictions that they really aren’t useful to the extent you need them to be.
Understand how your exit fees work
You may want to leave your mortgage early entirely, and you’ll often have to pay a fee to do so. Having knowledge of this fee beforehand can save you some grief. Often these fees are based on the amount you have remaining in your mortgage and the difference between your interest rate and the current posted interest rate. Read yours carefully so you aren’t surprised later on.
I am committed to giving first-time home buyers the attention they need so they can secure the Tmortgage that will truly work for them.