If you’re a first-time home buyer, you might have it in mind to pay off your mortgage as quickly as possible. The prospect of making extra payments from time to time probably seems great! But the reality is: there are penalties for paying off your mortgage sooner than agreed. And big banks dish out the biggest penalties of all.
When many new homeowners think about their mortgage payment they often cringe to think they’ll be making them for the next 25 years. Most of us like to get out of debt sooner rather than later and save on as much interest as possible. So knowing a few tricks to get your mortgage paid off faster always comes as welcome advice!
Character, Capacity, Capital, Collateral and Conditions. Knowing how these five characteristics apply to your quest to buy a home will make you a better, smarter, and more prepared first-time home buyer!
You might know what it takes to run your own home; paying the bills, doing the shopping, cooking the meals and cleaning up. If you pay rent you may also be pretty good at making a budget and living within your means. However, do you really know what it costs to own your own home? Before you decide to buy your first home spend some time “playing house” and find out if you have what it takes.
Credit cards. Love em. Hate em. Probably both. In any case, most Canadians hoping to start building their credit need to use one. Lenders have made credit card usage more and more attractive with the invention of spending perks like travel rewards and cash back. If you have the self-control to use a credit card as a tool you’ll get the most out of it.
If you haven’t been able to pass the stress test on your own, you’re not alone. About 10% of buyers who could qualify for a mortgage before the stress test no longer qualify. In fact, many existing home owners can’t even qualify for a lateral move into a new home and are having to downsize. Here are some tricks to help you get the qualification you’re looking for.