What are all the costs that are involved in mortgages? - Mortgage Guys
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Looking beyond the numbers! What are all the costs involved in a mortgage?

Getting the best Mortgage

Before you even start thinking about the repayments on a mortgage, first accept that the initial down payment you make will determine how much each month you will commit to paying back the bank.  The simple facts are that the loan interest is calculated on the size of the mortgage. Therefore, the less you borrow, less you will pay back over the loan period! However, if you’re a first-time buyer, you must be aware of the changes in the mortgage regulations and other influences that can affect first-time mortgages in Kitchener.

One common aspect related to a mortgage is that lenders are seemingly starting to give preference to those buyers with a significant down payment and applying certain incentives.  This has in some instances created confusion with buyers who are depositing less than 20 percent compared to those paying over that percentage.  

Interest rate basis

There are various interest rates available in the marketplace, applicable to short- and long-term fixed and variable rates, to posted rates, as advertised by financial institutions such as banks and credit unions. You could be questioning the differences between posted and discounted rates, and how they will affect first-time mortgages in Kitchener!

Briefly put, when you approach a lender, the rate offered to you will depend on various factors and be influenced by your debt ratios and credit report. If your record shows you as being a reliable borrower, then you could be offered the best and lowest available rate by the lender.

Take into consideration that a portion of a percentage point can represent $20 a month and not be critical. However, if you gain the best available interest rate and couple it with a large down payment, then the actual cost of your mortgage is significant. At the other end of the scale, a minimal down payment combined with a high-interest rate could create a serious financial issue.  

Loan Maintenance

Should you be in the position of renting a home and now want to learn about first-time mortgages in Kitchener; do not make the mistake of comparing your present rental payment with your future mortgage payment. Firstly, it will not be accurate and also it’s not based on full information. There are various financial aspects associated with buyers and obtaining a mortgage, which can be challenging and create the need for informed decisions. To ensure your new home is a positive experience, seek the advice of the experts in first-time mortgages in Kitchener!