If you are a prospective homebuyer the first thing you need to think about is where you want to live. You have to think about the type of location you need -near schools, outside the city, near a big park.
Then you should look at your budget - what price you can afford based on debt load. Usually person could afford 3.4 times their salary. so a couple with an income for $100,000 could afford to buy a house worth $340,000. The house, all debts, including the new mortgage, can be no more than 40 per cent of their salary. So out of that $100,000 gross income, no more than $40,000 can be used to cover their debts.
Then there's the down payment, which the buyer must have in hand before a mortgage will be granted. If you're buying a house you need five per cent for the down payment and 1.5 per cent of the purchase price for the additional costs such as notary fees, taxes, property insurance, home inspection, moving costs.
There's another consideration for home buyers: you have to pay a premium to the Canadian Mortgage and Housing Corporation (CMHC) in order to get a CMHC-approved mortgage.
Then you should think what kind of mortgage do you want. Eventually it will become important to you to being able to make additional lump sum payments or weekly or bi-weekly payments. You should consider many things about mortgage - for example, the ability to defer or reduce your mortgage payment in the case of an unexpected event or shortfall. You want real flexibility when it comes to mortgage payments. That's why you need a good mortgage agent to guide you through the whole process.
For more information go here - http://www.torontogreathomes.com/
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