Mortgages: What You Need to Know

Posted by Dave Koszegi on Wednesday, March 16th, 2016 at 1:41pm.

Mortgages are arguably the most important loan you will have in your life. Potentially the biggest loan you will have in your life, they are complex and require the help of a professional partner that you trust to provide advice and support.

Your mortgage broker will ensure that you get the best deal possible and pre-approve you for a certain amount, so that as a future homebuyer you know how much you can afford (taking into account the interest rate, property taxes and other monthly costs, etc.). When you are pre-approved, sellers will know you are more serious. This can be mandatory in a sellers market and can give you an advantage in a competitive bidding situation. Some other costs you will want to take in to consideration are closing costs and fees that may be charged before signing off on your mortgage agreement.

Mortgages can be tricky, with changing interest rates and new rules. Last month new mortgage rules were implemented in Canada. Now, borrowers will need to put a bigger down payment on the house they want to buy. Buyers must now have a minimum down payment of 10 per cent on a home over $500,000 and 20 per cent for homes priced over $1 million. For homes under $500,000 a 5 per cent down payment will remain the same. This will force potential homeowners to save longer, reduce risky borrowing and not rely heavily on debt to purchase a home. 

Give the Dave Team a call at (250) 723-7653 to find out more about mortgages and how to get pre-approved. We can refer you to our highly recommended mortgage brokers that can help you navigate through the process. 

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