Everyone is looking for the lowest rate when they are looking for financing to purchase their real estate property. That is why they are often blinded by other hidden risks that would cost them much more money. Before we go take out any money you should ask yourself the following questions to help you find out what you really need:
1. Are you going to keep your new home for a short term or a long term?
2. Are you planning to pay off your mortgage earlier than the contract term?
3. How much down payment are you looking to put down?
Based on the answers that you have on the above questions, you realize that what you really need is a fixed term mortgage instead of variable mortgage. Or, you may want to have a slightly higher interest rate but have the option to repayment your mortgage early so that you don't get penalty for doing so.
Depending on the market condition, your mortgage advisor would also make other suggestions to save you as much money as possible. Keep in mind that mortgage advisor is paid by their lenders, so it would not cost you a penny to seek for their advices. Buying and selling a real estate property is a big decisions, so be as well prepared as possible in order to make the best choice when the big day comes.
Note: I have added this section to the “Resource” section. You may find the icon on the left hand side. In there you will also find a mortgage calculator that helps you calculate your monthly mortgage payment. Hope this would be an asset for you.
For any additional question that you may have, please call me, Andrew Wang, at 604-782-1964.