With new mortgage rules coming into effect and mortgage rates due for an increase as the Bank of Canada’s rate increases; Canadians will soon find themselves in a bind when purchasing a home.
To help ease the stress of purchasing a home, I have a few tips you may want to consider following.
1. Lock in Mortgage Rate
When you apply for a mortgage, you will be able to lock in the rate. This is generally for a maximum of 120 days. This guarantee will let you have the rate you want despite any increases made during the time period.
2. Consider Future Possibilities
With rate increases bound to happen soon, and you are worried about affordability, take into account a 1 – 3% increase in your payments. By doing this you can have peace of mind knowing the whether or not you can afford a home now or in a few years.
3. Leave Room
With a pre-approved mortgage, you will know what you can afford, however do not make any rash decisions. Take into account your current lifestyle, and consider any future changes. You should purchase a house within a comfort zone, which will help if any unexpected costs come up.