- Start with your preselection -Write down your loan amount and the maximum payment calculated. Check this information against your own budget and determine your comfort zone. Use these two amounts as your minimum and maximum parameters.
- Identify your financial objectives- Very often an attractive mortgage rate can make you forget your financial objectives. Avoid committing yourself to a longer time than necessary, as it increases your total interest costs and takes away from your priority needs.
- Identify your priority needs with respect to your financial and mortgage objectives whether you want to have payment stability, payment security or accelerated mortgage repayment.
- Determine the mortgage solution based on your needs and your repayment capacity -If you decided for payment stability and security choose a money-saver mortgage or a variable-rate mortgage. If not, select a Capped-Rate Mortgage or a Fixed-Rate Mortgage.
- Does your down payment or your equity in the property amount to more than 25% of the price? If so, choose an option to refinance your existing mortgage. If not, select a short-term mortgage that expires at the same time that you would like to start your project or refinance your existing mortgage for up to 90% of your property value.
Thus a custom mortgage solution helps the mortgage prospects to have a better understanding of his mortgage loan needs and requirements.