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Money Advice for Life
Helping you choose your next mortgage
The economy is still recovering from the pandemic, inflation rates are high, and mortgage rates seem unpredictable. As a local credit union, we at Conexus understand the stress that many current homeowners and those planning to purchase are feeling, as we too are feeling the stress of uncertainties. Many of us are wondering what homeownership may look like for us over the next few years. And yet, we know that home ownership is a great fit for most people and an important part of our individual long-term financial health… so let’s talk about what’s important and where to start!
Find a knowledgeable lender that has your best interests at heart
There are so many lenders to choose from, so how do you choose the right one? Here are a few things to look for:
They ask you a lot of questions to fully understand your needs.
They have experience within the industry and can help guide you to choose the right mortgage.
They are a full-service lender and care about your overall financial health. You’re more than just a sale for a mortgage product.
Learn about your options
Is now the time to buy? What term length should you choose right now? There is no right answer to these questions as everyone’s situation is unique. When choosing the mortgage option for you, base your decisions on what you know now as this can help eliminate some variables later. A few questions you, and the trusted lender you select, should be asking include:
How long do you plan to live in this home? Less than five years? More? If less than five years, a four or five year closed mortgage most likely isn’t for you.
Do you plan to make any lifestyle changes in the next few years that could have an impact on what you could afford, such as career changes, family changes, etc.? Changes could impact your budget and what you can afford.
Understand your financial situation
How much money do you make each month? What expenses or debt do you have? It’s important to understand your current financial situation to know what you may be able to afford. If you like to travel, eat out, or are saving for retirement or paying down debt, consider spending less than your maximum pre-approval limit.
Know what you can afford
Ever fall in love with a pair of shoes to then see the price tag and realize you can’t afford them? The same goes for house hunting. Before you start looking at homes – online or in-person – get pre-approved so you know how much you can afford to borrow and what your interest rate will be. Many lenders offer a rate guarantee for a certain number of days allowing you to lock in a rate while you search for that perfect home.
Buying a home is one of the biggest financial decisions we make in our lives. There’s a lot to know and consider when getting a mortgage, and something you shouldn’t do alone. At Conexus, we have knowledgeable lenders across Saskatchewan who have your best interests at heart, available to answer all your questions, understand your situation, share options and find the right mortgage for you. Learn more and book an appointment today.