Buying Kamloops Real Estate > Home Buyer's Guide > Securing a Mortgage > How to Make the Most of Your Mortgage




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While you're shopping for a new home, don't forget about your mortgage. Take the time to shop at several institutions for the right plan for you: compare terms, rates and payment amounts. Small items like terms, rates and payments can either cost you or save you thousands of dollars over the life of your mortgage. The following list shows some suggestions on how you can make your mortgage payments work harder for you.

Get Pre-Approved

It's fast, simple and free. Before you shop for your home, spend some time with your financial institution. You'll receive a written pre-approval for a specified amount. Then when you've finally found your dream home, there’s no waiting involved!

Consider Your Comfort Level

In some cases, you may qualify for more or less than the dollar amount you want to commit to each month. Take the time to calculate different payment plans. Be sure you're comfortable with this amount and develop a budget. Remember it's always wise to leave yourself some breathing room for unexpected expenses or emergencies.

Consider Your Long-Term Goals

Before committing to a mortgage ask yourself these important questions: How long will you own this home? Will interest rates rise or fall? Will your income rise or fall? Will you be able to commit to monthly payments? Being objective about these factors can make a difference in the type of mortgage that's best for you.

Review Payment Schedule & Additional Privileges

The more you can pay and the more often you can pay, the more you’ll save. For example, making weekly or biweekly payments can take years off your mortgage. This way you lessen the amount of interest accrued over the term. Increasing your monthly payment can also reduce interest and term. Some mortgages allow you to pay a lump sum towards the mortgage at a specified time. Be clear about pre-payment privileges, as not all mortgages include them.

Consider a Portable and Assumable Mortgage

You can take a portable mortgage with you, should you ever move. You'll avoid paying discharge penalties and re-applying, unless you’re moving to a more expensive home. A buyer can take over your payments if you have an assumable mortgage. This could work to your advantage, making it easier for a buyer to purchase your home.

A REALTOR® can provide referrals to financial lenders who can assist you in obtaining the best mortgage for your needs. Having worked with families in various financial situations, his or her services can make a significant difference in the cost and effectiveness of the mortgage you obtain.

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