There’s an important step Nicole Wilford wants people to remember when they are considering purchasing a new home — whether it be their first time or umpteenth time.
And that’s to take into account the mortgage.
For many people, a mortgage is a fact of life when it comes to buying a house. Wilford, a mortgage broker with Slegg Mortgage in Sidney, says it can often be forgotten when the search for the perfect house begins. Often, the mortgage can determine just how much house a person or couple can buy. And it doesn’t stop there.
Costs — taxes, utilities, upkeep, fees, closing costs and more can add to the total cost of a new home and to the mortgage. This, said Wilford, gets more important the closer people are to the minimum down payment of five per cent.
“For many people, they don’t think of these costs until after they start searching for a new house. I think they need to start with their potential mortgage first, to see how much they qualify for. People may even want to see a financial advisor for a complete overview of what they can comfortably afford.”
For most people, their monthly budget is the bottom line. Wilford said a broker can help deliver that entire picture and find a style of mortgage that’s right for them.
While each individual situation is unique, Wilford said there can be a variety of mortgage choices — from traditional financial institutions to mortgage-specific companies and private lenders. They can be limited in scope when people only have the minimum five per cent down payment — or more varied if potential buyers have more money to put towards the purchase price. One of the more popular types of mortgages, she continued, is a Purchase Plus Improvements mortgage.
“This could be good for someone who only has the minimum down payment and needs cash for renovations of a house in their price range.”
Other options, such as using RRSPs or gifts toward down payments can also be discussed.
Wilford’s job, she explained, is to help clients find the right lender to meet their situation. What will help, she said, is if buyers come prepared, know how much they can afford and are prepared to do a little financial work to help make their dream of home ownership come true.
“That will make it a stronger deal.”