5 Thoughts on Getting the Right Mortgage

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By: rezasamanian
on 1st May,2013

That said, it is easy to understand why every consideration must be given to ensuring you have made the right decisions about your mortgage loan.
5 Thoughts on Getting the Right Mortgage


Let's face it; purchasing a home is the largest single financial transaction most of us will make in our lifetimes. That said, it is easy to understand why every consideration must be given to ensuring you have made the right decisions about your mortgage loan.

Get appropriate guidance
Mortgages are a maze. There are endless variations in rates, terms and types. No one can suddenly become an expert,  but anyone can seek the expert assistance of a Toronto mortgage broker. Unless you want to take up an intensive study of the mortgage loan market and undergo the repetitive process of making  mortgage loan applications, I urge you to engage the services of a mortgage broker. Locating a mortgage broker in Toronto is easily done online.

Understand your current financial circumstances
There is no better time to have a thorough grasp of your finances than when seeking a mortgage loan to fund the purchase of your home. Knowing your present financial circumstance will allow you to select the appropriate type (fixed or variable, the appropriate term (up to twenty-five years) and the right amount to pay down on your home.

Estimated potential for future earnings
Almost certainly, your mortgage payments will continue into the distant future. As a result, you will necessarily need to give careful consideration to your future earnings potential. These considerations must take into account the stability of your job, your spouse's job (if any), any career changes you and/or your spouse may be considering and, of course, what positive or negative impact these events will have on your household income.

Consider the impact on your finances which may result from buying an existing home
Buying a new home may mean fewer maintenance expenses. In contrast, buying an existing property can entail maintenance costs that must be anticipated. There is no guarantee that you will not incur maintenance costs on a new home, but it is less likely.

Planning for children
If you have or are planning to have children, the impact of child care costs must be considered. These child care costs include higher education. Having children may have an impact on household income if a spouse decides to forego career and stay home to raise the children. You want to make sure that your mortgage is structured in a way that meeting the monthly payment does not preclude saving for education costs.

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