The 3 P’s That Will Make Your First Mortgage Toronto Great

If you have any plans when it comes to obtaining your first mortgage Toronto

anytime soon, you need to consider some of these important points before you

even try. For many of us, buying your first house or investing in a residential

property is one of the major and biggest financial investments they will ever

have to make in their entire lifetime. It is because it involves a huge amount of

hard-earned money.  For this reason, we are putting ourselves in a better position

if we are going to carefully plan everything about it first. As much as possible,

we also need to have a good amount of perseverance and patience as we begin

our quest in finding the right residential property to buy. The following points

will help and guide you in finding the right home to buy.

Perseverance: Don’t Go Spending Beyond Your Means

If you want to remain true to your budget and not go beyond what you can really

spend on,  make sure that the homes you will look at are the ones that you

can really afford to buy. The moment that you give in to the urge of checking out

a rather expensive house, it is very likely that you will be tempted to consider it

instead, even though you are very much aware that it is beyond your financial

capability. You may even sometimes find yourself reasoning out to yourself, at the

back of your mind, why you should consider a top of the line house even though

you know for a fact that it is expensive.

There is one rule of thumb here that you need to keep in mind so you won’t be

tempted to break your own budget, your taxes and principal interests should not

go beyond the 25% of your monthly salary. Going overboard may eventually put

you in a difficult financial quagmire. To better illustrate this, say for instance that

you have a $1000 monthly mortgage dues, you’d be in a good disposition here

if your minimum monthly income is at least $4000. Working this out backward,  

under the assumption that you just made a 20% down payment, the $1000 that

you will allocate as your mortgage budget every month should be good enough to

afford for you a home that is valued at $200,000, at the very least.

Patience: Don’t Get Tired of Saving Some More Money

Theoretically speaking this can be done, but reality has it that it is virtually

impossible  to obtain a mortgage these days unless you have a good amount of

savings that can be set aside as your down payment. A minimum amount of down

payment is required which is at least 20% of the property’s current market value.  

But if you have the means, you are encouraged to pay even more. This will inspire

your lender to award you a lower interest rate for your mortgage loan.

It will also work to your advantage if you have an extra amount of savings worth

six months of your mortgage dues. This means to say that if monthly you have a

$1000 mortgage due, you  need to have savings that are not less than $6000. This

saving may not necessarily have to be in cash form, but it should be an investment

that is easy-to-get-your-hands-on or could be easily converted to cash in case of

emergency.

Planning: Venture Only If You are in Great Financial Shape

Most of the young and first-time homebuyers are unaware of the fact that their credit

rating will greatly impact the interest rate that a financial lender will give them. It

is no sweat if you really want to have a good credit score, but most of the time

people are so neglectful and oblivious of the best practices they should observe

when it comes to having a credit.

I suggest that you pay attention to the following if you want to have a decent

credit rating:

- Make it a good habit to only keep a limited amount of trade lines. When
you speak of trade lines, this refers to your loans, leases, contracts, and
everything similar with utility providers and credit cards.

- As much as possible do not incur late payments on your utilities. Never be
late when it comes to making your payment.  Late payments can have a
slow, hurting impact to your credit score.

- Make sure that your credit card balances are below 40% of its allowable
credit limit,  going beyond that may send a wrong signal to your lender
giving them the impression that you are a high risk borrower.

- Keep yourself abreast of your current credit score. Should you suspect any
inaccuracies or irregularities on how your rating was done, you need
to raise this issue up to the attention of the proper authorities. They can
only rectify errors after you report it to them.

Finally,  acquiring a house of your own for your future family can start even

while you are a young professional and still trying to build a career of your own.

The earlier you start on this goal, the better disposition you will have in the future.

But do not be dismayed or lose heart if at first, you encounter some bumps along the

road, this is normal and is actually a part of anyone’s journey when it comes to

having a house of your own. If you will heed the above-mentioned pointers, stumbling

blocks would be easily cleared off your track and your first mortgage Toronto

experience is bound to become seamless and smooth as it should be.