Congratulations, you’ve decided to purchase your first home! So, now what? How do you make your dream of homeownership a reality?
Your first step is to talk to an experienced mortgage agent who will outline all the important aspects of a mortgage and answer any questions you may have along the way.
Selecting the right mortgage with the ideal features to suit your unique situation is critical in ensuring a successful homebuying experience. After all, there is way more to a mortgage than simply the rate!
Following are three important mortgage features to ask about when selecting the product that best meets your needs.
1. PREPAYMENT OPTIONS
If possible, you’ll want to have the ability to increase your mortgage payments or make lump-sum payments to help pay your mortgage down faster. Even if you don’t think you’ll be making extra payments, remember that every bit helps, so it’s best to have this option just in case. Your mortgage agent will be able to ensure your mortgage contains a prepayment clause. Ask about the amount you can prepay without facing penalties.
2. MORTGAGE PORTABILITY
It’s tough to predict the future and know exactly how long you’ll remain in your home. What happens if you decide you want to move from your current home to a new home during the lifecycle of your existing mortgage? In this case, you’ll want to ‘take your mortgage with you’. In other words, transfer it to your new home. This is known as a portable mortgage. You need to, however, be aware of a few things in this situation, especially whether your existing mortgage rate is lower than what’s currently being offered in the marketplace. Your mortgage agent will be able to explain the ins and outs of this feature.
3. MORTGAGE CONVERSION
This feature allows you to convert a variable interest rate mortgage to a fixed interest rate mortgage within a certain time period, or at a specified date. You may wish to convert your mortgage in order to assist with budgeting and overall money management. Make sure you talk with your mortgage agent about how this may affect your existing mortgage, including prepayment options and penalties, which will be outlined in a conversion agreement.
Have questions about your mortgage options? We’re here to help! Answers are just a call or email away.