Posted 2.11.13 @ 13:25
No one wants to pay more than they have to – if you’re refinancing your home to upgrade before you sell or you’re about to buy a new home, you have to know how to find the best mortgage. It all starts with understanding how much you can really afford. Just because you’ve been pre-qualified or pre-approved for an outrageous amount doesn’t necessarily mean you should buy a $500,000 home! Think about how much this is going to cost you in minimum payments over the life of the loan; can you afford to pay double that? The faster you pay off your mortgage the faster you sock away equity for the future.
There are conventional mortgages, traditional mortgages, combination mortgages, all kinds of mortgages. If you’re buying a Oakville luxury home for sale or refinancing a home you’re going to have different needs. You’ll want to work with your bank, a mortgage broker or financial planner to really understand what’s out there and how to take advantage of the market while conditions are at their best. Virtually everything is on the table, but you’ll need to know what kind of mortgage you’re looking for before you get started.
Is the Interest Rate a Teaser Rate?
You’re going to want a professional to look over your mortgage contract. Is the interest rate stated in the contract the same as the one you were promised? Will the low interest rate transition into something less interesting in 6 months or a year? It’s important to really know what kind of terms you’re going to end up with before you sign on. Don’t just take their word for it, always have a real estate lawyer look before you sign. Once your signature is on the page there will be little if anything that can be done if things are wrong.
Is this an Investment Property, a Stepping Stone?
You’ll want to go in with a plan. Is this Oakville luxury real estate going to be an investment property, are you selling your current home to have that luxury dream home you’ve always wanted? Each will need a different approach. If this is an investment property you can take a higher interest rate and deduct it as part of your taxes for the next 20 years and see a benefit. If this is a home for you you’re going to want a low interest rate so you can pay off the property as quickly as possible and own it outright.
How Much Can You Really Afford?
Before buying Oakville luxury real estate you have to really ask yourself how much can you afford? Just because you’ve been pre-approved or pre-qualified for a large sum doesn’t mean you should push it to the max. Make a repayment plan up before you take out the mortgage and stick with it.
But while you can find a great mortgage, finding a great home can be far trickier. We’re Oakville luxury real estate agents and we’ve been here since the beginning – call us today and see what we can do for you.