When considering a mortgage, there are a couple of questions you need to ask yourself. A mortgage is a great long term investment. You can also browse to https://centrehypothecaire.com/ for different mortgage loans.
The best way to work this out is to look at your taxable income, minus any outstanding debt and your monthly payments. Look at around 32% of your income to cover the mortgage payments, property taxes, and utility bills.
However, when considering this make sure you know how much you can afford. Do not leave yourself without those little luxuries.
Type of Mortgage Available
The next part to consider is what type of mortgage your actually need. A qualified mortgage broker will be able to assist you with this, however, there are a few different options: Mortgages usually come in two forms closed or open:
Open Mortgages – Opposite to closed mortgages. The interest rate of the mortgage may fluctuate and there are no penalty fees for early redemption. Because of the added flexibility, the interest rates are normally higher.
Closed Mortgages – Closed mortgages are where the interest rate is fixed for the full term of the mortgage. The rate is normally lower than most mortgages, however, if you wish to pay off the mortgage and change the mortgage terms you will incur a mortgage penalty fee.
Variable rates Mortgage – The variable rate mortgage means that the interest rate will vary according to market conditions. These types of mortgages can either be open or closed.
Fixed-rate Mortgage – The fixed-rate mortgage has the interest rate fixed for the entire mortgage term. This is a good way to work out the exact mortgage payment needed each month.