If you are thinking of purchasing a home, you most likely have a lot of questions. We’ve come up with a quick quiz to test your knowledge and see if you’re mortgage ready.
Question: Can I afford a mortgage?
Answer: You will need to budget and have a down payment of at least 5%. To find out if you can afford a mortgage, check out our free mortgage affordability calculator.
Question: What percentage of my income should I calculate for monthly housing costs?
Answer: On average, the total cost of your monthly mortgage, property taxes and the monthly portion of your annual home insurance should not be more than 25 to 30 per cent of your monthly net pay. You should also look at any major expenses you may have in the next few years such as needing a new car, children going to college etc. by adding a little wiggle room to cover these and unplanned expenses.
Question: Will I always get the best mortgage rate from my financial institution?
Answer: Not necessarily. If you are a loyal customer, your financial institution may offer rate discounts. It’s always best to compare best mortgage rates from other institutions or a mortgage broker before getting a mortgage from your financial institution.
Question: What is the range for typical closing costs?
Answer: You’ll want to budget between 3% and 4% of the purchase price of a resale home to cover closing costs, so costs could run anywhere from $6,000 to $8,000 depending on factors like where you live, the type of home you’re buying, or if it’s a new construction.
Question: How much should my down payment be?
Answer: The minimum mortgage down payment in Canada is 5% and many lenders can offer insured mortgages for both new and resale homes with lower down payment requirements than conventional mortgages.
Answer: Yes, as long as the renovations add equivalent value to the property. Be sure to be prepared to provide quotes for the renovations.
Question: Can you include renovations costs to your mortgage?
Answer: Yes, as long as the renovations add equivalent value to the property. Be sure to be prepared to provide quotes for the renovations.
Our mortgage experts at Oakville Mortgage are ready to answer all of your mortgage questions and let you know if you’re mortgage ready. Real Mortgage Associates Inc. is comprised of some of the most dynamic and experienced personnel from the mortgage industry. We will provide all the necessary advice and guidance that you might require for your mortgage application, interest rate negotiation, or any other related procedure. We constantly work towards offering you the best solution in the most cost-effective manner and offer some of the best mortgage rates in Ontario.
Contact us today or complete our 2 minute quick application. We look forward to answering your questions and assisting you.
