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What to Look for in a Mortgage as a First-Time Buyer

With an increasing number of people hoping and trying to get on the property ladder, more and more first time home buyers are looking for mortgage. Toronto seems the obvious and most preferred choice for first time home buyers.

Buying a house is the biggest decision of one’s life, arguably after marriage. If done right, the process and experience of owning a house can be cherishing; and if one is not equipped with correct and complete information, well, this can be a pit of quicksand and leads to nothing but nightmare.

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There are numerous first time home buyers in and around Toronto. And with rapidly changing market trends and mortgage related norms, it is very easy to get confused. But there is hope! If due care, caution and diligence is practiced, this proverbial mortgage maze is not too difficult to get through. While the case may depend on individuals, here are a few things to look for in a mortgage as a first time buyer:

  • Do your homework: You must be absolutely sure and prepared for all the possibilities before applying for your first mortgage. One can start with asking self a few questions to determine if the time is right.
  • Do you have a control over your finances? You must be in a financial zone where you analytically decide if or not you can exercise control over your finances.
  • What would be the limit of your deposit? As a general rule, the better the credit score and the bigger the deposit; the brighter the chances of securing a mortgage.
  • What are the overheads involved? Be aware of the brokers commission or fees involved in various steps and processes involved.
  • Getting the best mortgage deal: Talk to multiple lenders to know more about the market and employ the services of brokerage as they are experts and can be instrumental in getting you the best deal.
  • How much repayment can you afford to pay: It is imperative that one has the finances in order before applying for a mortgage. You must be aware of the limit of repayment you can afford to pay.
  • Know the various types of mortgages available and decide the best one for you: There are two choices here: variable rate, one that can change – and a fixed rate, which will not change for a certain period of time
  • Know the time frame for the mortgage to be approved: This well ensures you do not have sleepless nights dreaming about the favorable or otherwise, outcome of the mortgage application.

Buying a house comes as a great source of happiness, sure. However, it comes at a cost. Someone who has a first time home mortgage should be prepared to shell out extra bucks for up keeping and maintaining of the property. Not just that, first time home buyers, everywhere, including Toronto must keep buildings insurance expense in mind too. Keeping these in mind as a first time home buyer applying for a mortgage will help you successfully sail through the mortgage process.

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