Lou Cruz RE/MAX Crest Westside (vanw7)

Cell 604-345-3824 | EMAIL loucruzrealestate@gmail.com |

Many people suffer from post New Year's hangovers as their holiday spending account statements begin to arrive in the mail/inbox.  This year, start the year off with a plan to minimize your monthly expenses and your interest carrying cost.  Your mortage broker can assist you by conducting a no-cost, no obligation financial check-up and evaluate your multiple options.

 

Having access to all major institutions, mortgage brokers can provide you with the right product, mortgage or line of credit to assist you with your plan for 2013.

 

As an example, please see the before and after scenarios for people that took steps to rid themselves of their high interest debt.  The result is staggering -  a monthly savings of $1670 and the ability to reduce their amortization by 10 years if they contribute the initial payments towards their mortgage.

 

BEFORE         BALANCE              PAYMENTS             AFTER       BALANCE            PAYMENTS

 

Mortgage         $250,000.              $1,390.00                                   $300,000.            $1,434.00

 

Car Loan           $15,000.                 $ 439.00                                          $0                       $0

 

Credit cards      $25,000.                  $750.00                                          $0                       $0

 

RSP Loan          $10,000.                  $525.00                                          $0                       $0

 

TOTAL               $300,000.               $3,104.00                                  $300,000.            $1,434.00

 

A mortgage broker's goal is to provide their clients with expert advice ensuring they have access to the right information and the best solution in the industry.  Speak with your mortgage broker, you will be pleasantly surprised.

 

This information was provided by Maria Yazadjian of Dominion Lending Centres.  You can contact Maria directly at 778-321-3448 or by Email at:  maria@my-mortgages.ca   Make sure to let her know you read this on my blog!!

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The Canadian Real Estate Association (CREA) provides a number of different resources to help you buy a home.  It provides helpful advice on the basic knowledge you need before buying a home, plus useful advice to guide you throughout the process.  Topics covered are:

 

1.  Assess Financial Readiness

 

Assess your present household budget and your annual income to determine if you are eligible for a mortgage and how much you can comfortably afford.

 

2.  Consider Mortgage Options

 

A mortgage is a loan, generally used to buy a property.  How much you pay depends on how much you borrow (the principal), the loan's interest rate, and how long you take to pay it back (the amortization period).  Do not be afraid to negotiate interest rates and mortgage terms with different lenders.  They are offering you a product and talking to more than one lender helps you make an informed decision.

 

3.  Mortgage Default Insurance

 

When you buy a home with less than a 20% downpayment, the mortgage needs to be insured against default.  This type of insurance protects the mortgage lender in case you are not able to make your mortgage payments.  It does not protect you.

 

4.  Research Government Programs

 

The federal government has assistance programs to help homebuyers.  Research government program requirements to see if you are eligible for things such as First-Time Home Buyers' Tax Credit, Home Buyers' Plan (withdrawing from your RRSP), etc.  The provincial government also offers incentives to First-Time buyers.

 

5.  Finding a Home

 

Finding your perfect home can be a long process.  Your REALTOR will help identify the right type of home for you and continually research new listings in neighbourhoods that meet your needs.  Your REALTOR will assist with questions such as: Where Do You Want to Live, What Type Of Home Do You Prefer, What Type of Ownership Are You Looking For, etc.

 

6.  Making an Offer

 

After seeing many different homes, you have finally found one worth of an offer! What are the next steps?

 

 

7.  Closing and Related Costs

 

Closing costs are the legal, administrative and disbursement fees associated with buying a home.  Understanding these fees will help you budget more accurately.  Remember these are additional costs over and  above the price of the home.

 

For the entire article, please check out CRAS's website at: 

 

crea.ca/sites/default/files/Homebuyers_Road_Map_EN.pdf

 

 

 

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