So, you’re finally thinking of owning that dream Edmonton home? Great for you! In today’s article, we’ll discuss that things you need to prepare for if you and you’re spouse are planning to get a mortgage loan.
First and foremost, now is the best time to get a mortgage since Edmonton and the rest of the Alberta region is experiencing a low interest rate environment.
We did a quick look at the prevailing interest rates today in Alberta, check out the screenshots below.
Courtesy of http://www.lowestrates.ca/mortgage/alberta
Courtesy of http://www.ratehub.ca/current-mortgage-rates-alberta
There are tons of banks and mortgage brokers competing to provide the best rate so it’s up to you to make that wise, informed decision.
Now, here are a few things that you need to prepare for when getting the mortgage.
KNOW THE DETAILS: “The devil is in the detail”. Before signing on the dotted line, educate yourself first with the mortgage mechanism. Double check the terms and conditions and if possible, seek advice from an expert. We have plenty of them here.
Usually, there are hidden costs and fees that come with such low interest rates. DON’T neglect these! It will become a pain in the butt in the future, that’s for sure.
THE RULE OF 28: If there’s one thing that we could learn from the housing crash in the US-it’s that we should not take out too much loan that we can’t afford. Americans were taking out mortgages like crazy! They were getting loans that far exceeded their income capability and that was a recipe for disaster. We all know what happened next.
The rule of 28 states that the monthly mortgage payment you take should not exceed 28% of your monthly income. TAKE LESS THAN WHAT YOUR LENDER WOULD LIKE TO GIVE YOU. Don’t succumb to the temptation.
FINALLY, HOME IMPROVEMENT: This simply means taking care of the house. Buying it took a lot of your time, effort and money so it is but wise to preserve its current state or make improvements out of it.
These are the skeletons on to which you should build your thoughts and emotions around when taking out your first mortgage. It’s easier said than done, I know, but with this knowledge, we’re hoping you’ll be better off than those people who doesn’t know a thing.
For a list of available Edmonton homes for sale, visit our new and improved Edmonton MLS listings.
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