If you’re in the market for a new home or are just wanting to refinance your current home, there are many mortgage planning tips out there that will help you along the way.
Homeownership and mortgage payments shouldn’t be another stressor in your life. With effective mortgage planning tips in Canada, you won’t even have to worry about your new long-term investment.
Planning out a mortgage into the future is a wise way to save money and be completely fireproof against any unforeseen circumstances.
Ensure to Borrow A Lower Amount Than You’re Permitted
There are typically two rules that mortgage brokers will use when they’re lending out money.
The first one is that the costs of housing shouldn’t amount to higher than 32% of your annual gross income. Some of the costs associated with this are the interest, mortgage principal, applicable taxes, heating bills, and half of the condo fees if it’s a condo. If you want to figure out the costs associated with your home, you can use a gross debt service ratio calculator.
The second thing that a mortgage broker will keep an eye on is your current total debt. This means your credit cards, any vehicles, and other housing bills. This amount shouldn’t accumulate to more than 40% of your gross annual income. You’ll want to calculate your total debt service ratios to know the full amount of debt load that you’re able to safely carry from month to month.
Going for the highest amount of money right off the hop is a risky decision. If your financial situation changes or your expenses take a sudden turn, then you could potentially run into trouble being able to make the monthly payments. If you shoot for a lower mortgage, then the cost of housing will be within what you’re able to pay.
To figure out the highest mortgage you’re able to safely afford, try out a mortgage affordability calculator.
If you want to know the amount you’ll be paying on a regular basis, try out a mortgage payment calculator.
A household budget calculator can also come in handy if you want to compare your income with your expenses, and then compare that to see if a mortgage will be affordable for you.
You’ll also want to keep in mind how increased interest rates will have an impact on your monthly payments. If the interest rates suddenly go up, then you need to be prepared for the higher monthly payments, as well. An example of this is if interest rates jumped up from 5% to 7% on a $250,000 mortgage. This means that your mortgage payments will increase by $300 a month.
Paying Off Your Mortgage Quicker
Increasing the amount you’re paying each month is a good way to pay off a mortgage faster. Try paying $700 instead of $640 per month.
Try doing lump-sum payments towards your mortgage principle. Adding little $800 payments every so often can go a long way in speeding up the mortgage payment.
Consider doing accelerated payments. This means that if you’re doing two payments a month, try doing two payments bi-weekly.
Pay your mortgage broker a visit for some other mortgage planning tips.
Paying more towards your mortgage initially will get it out of the way faster.
If you’re not able to make the mortgage payments for any reason, you’ll want to seek out financial help immediately. Your mortgage lender will be able to help you with the financial issues in any way that they can.
Mortgage planning tips can smoothen out the sometimes frustrating process of paying off a mortgage.
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1206 Centre street Suite 207 Vaughan, Ontario L4J3M9
Useful Mortgage Planning Tips For Homebuyers
If you’re in the market for a new home or are just wanting to refinance your current home, there are many mortgage planning tips out there that will help you along the way.
Homeownership and mortgage payments shouldn’t be another stressor in your life. With effective mortgage planning tips in Canada, you won’t even have to worry about your new long-term investment.
Planning out a mortgage into the future is a wise way to save money and be completely fireproof against any unforeseen circumstances.
Ensure to Borrow A Lower Amount Than You’re Permitted
There are typically two rules that mortgage brokers will use when they’re lending out money.
Going for the highest amount of money right off the hop is a risky decision. If your financial situation changes or your expenses take a sudden turn, then you could potentially run into trouble being able to make the monthly payments. If you shoot for a lower mortgage, then the cost of housing will be within what you’re able to pay.
To figure out the highest mortgage you’re able to safely afford, try out a mortgage affordability calculator.
If you want to know the amount you’ll be paying on a regular basis, try out a mortgage payment calculator.
A household budget calculator can also come in handy if you want to compare your income with your expenses, and then compare that to see if a mortgage will be affordable for you.
You’ll also want to keep in mind how increased interest rates will have an impact on your monthly payments. If the interest rates suddenly go up, then you need to be prepared for the higher monthly payments, as well. An example of this is if interest rates jumped up from 5% to 7% on a $250,000 mortgage. This means that your mortgage payments will increase by $300 a month.
Paying Off Your Mortgage Quicker
If you’re not able to make the mortgage payments for any reason, you’ll want to seek out financial help immediately. Your mortgage lender will be able to help you with the financial issues in any way that they can.
Mortgage planning tips can smoothen out the sometimes frustrating process of paying off a mortgage.