Finance

Choosing the right mortgage (broker)

With the housing market crash south of the border, lenders everywhere have become more stringent in their requirements for making a mortgage loan. Repercussions are being felt even here in Canada. I read recently that they are not going to offer any long term (40 year) mortgages anymore in Canada with zero down. There must be a 5% minimum down payment. If you are thinking of purchasing your home, let a mortgage broker guide you through the financial details. A good mortgage broker will help you establish your budget even before you start house hunting.

When the time comes and you are in a position to purchase a home, what are the steps you should take? How do you hire a realtor? What will a realtor do for you? Where do you obtain financing? Who should you speak to, your Banker or a Mortgage Broker? How many different types of mortgages are available to you? Which type of mortgage do you choose? How do you know you are getting the best rate? Do you need a down payment and what, if any, are the repercussions if you don’t have a down payment? What type of term as well as amortization period is available to you. What about prepayment penalties, are there any, or are you able to prepay without a penalty, if so, what percentage will the Bank offer you? Will you need an appraisal, an inspection, a survey and if so, who will pay for these? Then there are property taxes to consider, insuring this new property to consider and hiring a Lawyer who has experience in real estate transactions and who will represent you at an equitable fee.

Not discouraged yet? Good, because as long as you do your homework, via family, friends, the internet and hire qualified people from realtors, brokers, appraisers, inspectors etc., who are looking after your best interest, the transition from renter to home owner should flow smoothly. Each and everyone of these professionals should give you expert advice and their time to be absolutely sure you understand each step along the way and that you are totally comfortable in the transaction. Ask lots of questions as this is new to you. A good idea would be to write your questions down before meeting with your realtor, broker, so you don’t forget anything.

A wealth of information is available to you through Canada Mortgage and Housing as well as Genworth Financial use it. If you are considering moving Quispamsis/Saint John and surrounding areas, consider talking to Pat Lockhart. Pat’s an accredited broker and she can help you get the best rate that suits your needs.