Common Mistakes Canadians Make With Their Mortgages
Purchasing a home is an exciting moment, and some people get caught up in it to the point that they lose focus and make poor decisions when taking on a mortgage. These errors, whether made before or during the procedure, can result in a higher interest rate or the denial of a mortgage that they would otherwise qualify for. Therefore when applying for a mortgage, it’s critical to make good decisions and have everything in order.
To educate you on the most common mortgage mistakes made so that you can avoid them at all costs, Angela Milosevic has put together a list of the most common mistakes Canadians make with their mortgages.
1. Blinded by the rate
Ask any mortgage broker, and they’ll tell you that the question they’re asked most frequently is: “What’s your lowest rate?”
The interest rate you’ll pay on your mortgage is a massive consideration, so comparing the rates lenders are offering is a good habit once you’ve slipped on your house-hunter hat.
2. Not reading the fine print
It is very much crucial to read the fine print. Understand what you’re signing up for! This contract will almost certainly include conditions that will cost you a significant amount of money throughout the duration of the mortgage.
It’s critical to double-check all of the numbers in the agreement to ensure they’re correct and to understand what penalties you’ll have to pay your lender if you violate the conditions of your contract by refinancing, prepaying, paying late, or paying off the full loan before the term ends.
There are a lot of fees, and there are a lot of criteria that you should be aware of.
For this reason, working with a mortgage broker will help you with all that, making sure to go over every detail.
3. Failing to see the bigger picture
Understanding the relationships between your mortgage and your overall financial situation is a key step in the mortgage application process. When determining which mortgage is best for you, don’t base your decision just on a single calculation of “Can I make my payments every month?” without first taking into account your complete financial situation.
4. Not having your documents ready
One of your mortgage broker’s primary functions is to provide lenders with paperwork confirming your income, assets, source of down payment, and overall reliability as a borrower. Without complete and accurate documentation, no reputable lender will be able to process your loan. Make sure you provide all the documents your mortgage broker requests.
5. Rushing in too quickly
Your mortgage will dictate the strength of your personal finances for decades. The small details you skip over during the mortgage process can result in you paying way more for your mortgage than you need to or missing out on a property you have your eye on.
To avoid these and other mistakes, reach out to Angela Milosevic, a professional mortgage broker from Cambridge, ON. With 15 years of experience assisting clients in realizing their dream of house ownership, I have a solid lender relationship, and I make it a point to provide you with the best mortgage services possible.
My full range of mortgage services includes first time home buyer mortgage, mortgage refinance for debt consolidation, mortgage refinances for home renovation or investment, self-employed mortgage, investment property mortgage, vacation or second home properties, bad credit mortgage, commercial mortgage, reverse mortgage, new to Canada mortgage, and spousal buyout mortgage.