By planning your mortgage well in advance, you will save money and be better prepared to navigate any financial set backs.
If you are buying your first home or trading up, it is very important to make an informed decision when purchasing a mortgage.
A mortgage is a long term financial product.
1. Work out exactly what you will need to borrow and what the costs will be as a percentage of your overall gross income.
2. Factor in possible known life cycle changes during the mortgage term and also unknowns.
3. Consider the impact of higher interest rates during the mortgage term.
4. Set a date to pay more off your mortgage – pay it off faster.
WARNING: YOUR HOME IS AT RISK IF YOU DO NOT KEEP UP PAYMENTS ON A MORTGAGE OR ANY LOAN SECURED ON IT.
VARIABLE RATE LOANS : WARNING: THE PAYMENT RATES ON THIS HOUSING LOAN MAY BE ADJUSTED BY THE LENDER FROM TIME TO TIME.
FIXED RATE LOANS : WARNING: YOU MAY HAVE TO PAY CHARGES IF YOU PAY OFF A FIXED RATE LOAN EARLY.