Ask an Expert: How Can I Be Mortgage Savvy?
Want to do your research before heading into mortgage territory? At Avi Urban, we work with the experts to help you make the best decisions when buying your new townhome or apartment with us. One of these experts is Laura Parsons, Bank of Montreal Manger of Mortgage Specialists and Calgary Sun Columnist.
This week, Laura is back to help you be savvy when choosing a mortgage. “[In 2011] the Canada Mortgage and Housing Corp. (CMHC) conducted a survey of more than 3,500 recent mortgage consumers in an effort to assess their understanding of home financing options,” explains Parsons. The survey showed that “Canadians are becoming savvier home buyers and are doing more research to thelp their decision making.”
Here are some tips from Laura on researching your mortgage options:
- Use an online calculator: “Specifically, 75% of respondents said they used an online calculator during their search,” says Parsons, “and with social media and mobile devices at a buyers’ fingertips, the Internet is an important tool in their repertoires.”
- Compare scenarios: “65% of customers indepedently compared the costs of different interest rate scenarios on different amortization or payment schedules. Doing this by using online tools can help you understand how much you can afford.”
- Seek out advice from the pros: “81% of buyers continue to view homeownership as a good long-term investment and said they releid on a mortgage professional for advice. It showed that many took time in planning their purchase.”
- Be pro-active: “Another statistic shows that some people are proactive in paying off their mortgage sooner. The survey found that 39% are setting their payments higher than the minimum required and are planning on reducing their amortization period. This also tells me consumers are getting all the information on pre-payment options and understand how easy it is to lower their overall interest costs.”
Being mortgage savvy is all about knowing your options. “Based on the results from the CMHC survey,” shares Parsons, “Canadians are taking time to understand their home financing options – and that is good news.” If you have a question about your home financing, reach Laura Parsons at email@example.com.