Canada Mortgage Loan
Canada Mortgage Loan: How to Tell If You're Ready for a Mortgage
Believe it or not, real estate can be an “impulse buy.” For example, your friends who got married a year after they purchase their first home. Or, the guy you went to college with buys a building to expand his business. Or, your single friend who just got a raise decides to purchase her apartment.
Before you make the leap however, there are some pre-qualifying questions you should ask yourself before applying for a Canada mortgage loan.
5 Questions to Ask Yourself Before Applying for a Canada Mortgage Loan
Canada Mortgage Loan Pre-qualifying Question #1: Why do we want to buy?
Getting a Canada mortgage loan is an important financial decision. Make sure it's based on sound reasoning, e.g., not because your friends are buying, but because it's what works for you, your family and your financial situation at the time.
Canada Mortgage Loan Pre-qualifying Question #2: How much of a down payment do we have/will we have to save?
If you put down less than 20%, you will not be able to get a conventional Canada mortgage loan, which tend to have the lowest interest rate.
While there will always be Canada mortgage loans available to you if you have good credit, it's always best to put down as large a down payment as you can afford to get the best interest rate.
Canada Mortgage Loan Pre-qualifying Question #3: How much can we afford? Key to figuring out down payment is figuring out how much house you can afford.
Any Canada mortgage loan calculator on the web can tell you this. Log on and start plugging in some numbers to get some ideas.
Canada Mortgage Loan Pre-qualifying Question #4: Are we willing to make lifestyle changes to accommodate a mortgage?
Unless you are wealthy, getting a mortgage usually requires lifestyle sacrifices. After you figure out how much of a Canada mortgage loan you can afford, you will get a very good idea of where you stand financially.
Then, you have to decide if it's something you're willing to do.
Canada Mortgage Loan Pre-qualifying Question #5: Where do we want to buy? Real estate is all about location.
The main reason you want to consider location is value. Whether this will be your last home, or whether you plan to sell in a few years, buying in the right location is key.
Canada Mortgage Loan Location Tip: Consider this: If you plan to sell in a few years, the neighborhood you choose to buy in figures prominently. An up-and-coming neighborhood, for example, could not be the best buy because what if values don't rise as quickly as you expect them to by the time you get ready to sell?
If you plan to retire in the home, it could be part of your retirement nest egg. Therefore you want to be sure the home will appreciate well in value.
As you can see, location figures prominently, no matter your future plans.
Back to top
