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Mortgage Advice: What Should First-time Homebuyers Know?
Becoming a homeowner in Canada today is tough. With the hot Canadian housing market and provincial and federal governments trying to curtail unbridled price wars through changes to mortgage lending rules and foreign buyer taxes, what mortgage advice can you give clients in times like these?
Buying a home isn’t easy at the best of times. Many homebuyers see so many open houses before they find something they actually like and then they’re competing with other homebuyers for that same property.
When it comes to financial matters, clients should call their mortgage broker first — and then keep them on speed dial! As a broker, you’re not there just to find a deal. It is also advantageous for a buyer to look at what they can afford to buy and assess their ceiling before getting out in the marketplace – these are calculations that they need you for.
By situating yourself as the go-to person on all aspects of the transaction, not just the financial part, you can easily provide your client with more. When clients dip their toes in the waters of homeownership (especially if it’s their first go-round), a mortgage broker will be able to provide personalized advice geared toward closing the deal safely, happily, and without leaking cash.
Here is a list of tips to give to your first-time homebuyers:
- See as many properties as possible.
- Be realistic. A number of first homebuyers start their hunt looking at properties priced well above what they can afford. Homebuyers should look in the right price range and areas – you can help them determine what those ranges are.
- Be inquisitive. If a place is cheap there is probably something wrong with it.
- Check that everything works.
- Plan the mortgage properly. Having kids, travelling overseas, going back to study, or running away with the circus – work out what that means in advance for mortgage payments.
- Get independent advice from an experienced and knowledgeable mortgage broker who can look at all of the options.
- Pay more than the minimum. Getting mortgage free in 10 or 15 years is easy if one is disciplined about it.
Getting good advice from a mortgage professional is one of the best decisions a homebuyer can make. Knowing all the different things that can impact a sale – from interest rates to neighbourhood reports – is something mortgage brokers should just know.
Getting more information about a property and the applicants is easy. With all the right information at your fingertips, your mortgage advice will have a bigger impact. Want to know how you can verify property related information easily and accurately?
Please visit Purview today at www.purview.ca.« Back to Blog