Fri, 05 Apr
So you’ve decided to purchase a home, congratulations! Before becoming a homeowner you must calculate your budget and keep in mind that it’s all about balance. Yes, you want to find the perfect home; however, you want to do so at an affordable cost.
97% of Canadians agree that cost in the most important consideration when choosing a home.
The Edmonton Home Pros team help future homeowners from day one, until the moment they move into their new home. Below are three simple steps to help you calculate your home buying budget:
1. Find your options. Do you know the difference between variable-rate and a fixed-rate mortgage? Do you know what amortization period best suits you? Take the time to learn about your options, it will help you make a better informed decision. Payment flexibility is also important to keep in mind if you are looking to pre-pay.
2. Crunch some numbers. Search for your desired Edmonton home with confidence- knowing that each property you view is within your budget. Download an online mortgage calculator to compare different mortgage options and payment plans.
3. Get pre-approved. You can do this at your home bank at no cost or obligation, it also gives you the perfect opportunity to go in and talk to a mortgage specialist. By doing so, you will be prepared when you find the Edmonton home you want.
Looking to buy an Edmonton home? Contact Stephen Lau today for your complimentary home buyers consultation. Alternatively, you can also begin searching for Edmonton homes for sale.
Fri, 22 Mar
Paying off your mortgage faster may not always be a good thing.
For Canadians it’s all about balance: balancing your checkbook, balancing your work and personal life, and balancing your debts. Over the last year, the real estate market saw two dramatic changes: household debt climbed to a record high and 32% of homeowners increased their mortgage repayments.
Somehow, these Canadians had found ways to pay off their mortgages faster. In fact, approximately 1.9 million mortgage-holders had made additional payments during the past year. The remaining 60% continued to make their minimum biweekly payments while contributing to their RRSP’s, utilities, groceries, vehicles and daycare costs.
While being mortgage-free is a homeowners dream, one must remember that it’s all about balance- although their mortgage debt is falling, their consumer debt is rising. Some of the 1.9 million mortgage-holders acquired debt elsewhere, such as: credit card balances and lines of credit. As a result, they are not getting ahead in their overall debt load, despite their faster mortgage repayments. It’s a dangerous game, especially when credit card debt comes with a very high interest rate.
The keys to obtaining mortgage freedom are balance, cash flow discipline, and a commitment not to spend additional income on items other than your mortgage repayment. Mortgage rates are at an all time low, so now is a perfect time for Canadians to take advantage of it and shorten their amortization periods- as long as they do it wisely.
Stephen Lau and the Edmonton Home Pros team can help Edmontonians become homeowners. Looking to buy a home? We can bring in mortgage specialists to talk financing options with you and answer any questions you may have. Contact Stephen Lau today!