Summary, tips and silly things home buyers do

To summarize, your objective should be to look for a reputable lender at the lowest possible interest rate.

Aside from that, your secondary objective should be to get the shortest possible commitment, highest possible prepayment and minimize your mortgage approval cost.

You first need to get some idea as to how much you can get approved for. Mortgage brokers and banks will vary in this case.

Unlike most commission based sales, I do recommend using the Internet to search for mortgage brokers. As long as you know your stuff, there is very little a mortgage broker can do to harm you (unlike Real Estate Agents)

However, I do recommend using banks over mortgage brokers, if you can. Banks are simply more reputable.

If you are new to getting a mortgage, don't fall in the trap of going with a higher interest rate because housing prices will go up. That simply could put you in jeopardy just like the US housing crash of 2009.

Don't aim to starve yourself so you can pay off your mortgage like no going out to dinner or movie for five years. People have thought o these silly ideas, but few if any follow through. They just end up going into debt.

Although you can make smaller commitments like no buying coffee everyday. But these commitments will save you money whether you have mortgage or not. Thus, these saving techniques is really independent of your mortgage. That is, if you couldn't commit to it before your mortgage, you probably wouldn't be able to commit to it after.

Don't aim to pay off your mortgage as quickly as possible if you have other debts or intend to get other debts. Your mortgage interest should be the lowest interest rate compared to any other debt interest. I knew one person who made a huge down payment on her mortgage because she didn't want to make large scheduled payments. But then she bought a car and had to take a out another loan that had an even higher interest rate. She should have just use the down payment to pay off the car loan.

There other ideas that can help you pay off your mortgage like The Smith Manoeuvre. Although I think this idea is dead due the Tax Free Savings Account.

One simple way to set your mortgage payment schedule equivalent to your salary pay day schedule. If you calculate the interest savings of this simple idea, you could save up to five years of interest.

Good luck, hunting!

If you have any other questions or concerns, post them, so I can respond.

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