If you’re like many newcomers to Canada, one of your top financial goals is likely to own a home in your new country. With that in mind, you’ve likely considered how much you can afford as a down payment, what you’re looking for in a home and what neighbourhood you’d prefer. What might be less clear is how to decide which mortgage solution makes the most sense for you.
Get professional advice
A professional mortgage advisor can help you review your overall financial goals, such as whether you prefer the certainty of a fixed rate or the potential savings a variable rate might offer, what you can afford as a down payment and how much you will need to borrow in order to buy a home in your price range.
An advisor can also help you ensure your mortgage is aligned with your goals. When buying a home, you need a realistic plan that helps you pay down your mortgage while staying on track towards your other financial goals like saving for a child’s education or planning for retirement.
Fixed or Variable?
Once you’ve established the basics, it’s time to look at rates. The two main options to choose from are fixed or variable rate mortgages.
A mortgage advisor will consider how your mortgage payments will fit into your financial situation now and in the foreseeable future with a focus on long term affordability. For example, a variable rate mortgage may offer a lower rate today, but rates may increase over the next few years, which could increase your payment and potentially affect your ability to save for other goals. In this case, you might consider the security of a fixed rate mortgage. Consulting a professional mortgage advisor will help you determine the smartest solution for you.
No Canadian credit history?
With some lenders you can qualify even with no Canadian credit history2. However, it is very important to establish credit as quickly as possible. That way you have as many options as possible with the lenders that are available to you.
It is important to be aware of all the “extra” costs associated with buying a home, such as lawyer’s fees, provincial/municipal transfer fees, moving costs, and so on. Your mortgage broker can help you determine what those costs will be.
Once you have moved, you will have ongoing costs like maintenance, property taxes, home insurance, and utilities. When you are ready to look for a home, get a preapproved mortgage from GLM Mortgage Group. Your interest rate is locked in for 90 – 120 days, and you know exactly how much financing you qualify for.
“We’ll Get You a Fast “YES” At the Sharpest Rate … Guaranteed!” – Geoff Lee, President GLM Mortgage Group.