As we navigate through a period of higher-than-usual interest rates, the complexities of mortgages are becoming a significant concern for many individuals. To address these concerns, I sought the expertise of a seasoned mortgage broker, Sanja Foussias from Sherwood Mortgage Group, to provide insights into the critical questions you should consider when searching for a new mortgage—for a purchase, refinancing, or renewal.
Below, you will find a guide to empower you to ask the right questions so you can make informed decisions.
Here is a list of 10 essential questions (with additional sub-questions) that every client should inquire about when seeking a new mortgage, whether for a purchase, refinance, or renewal:
- What are the various mortgage types available, and which would be the most suitable for my financial circumstances?
- What is the present interest rate on a mortgage, and should I opt for a fixed or variable rate? How could fluctuations in interest rates influence my monthly installments?
- How long is the amortization period for the mortgage, and what are the consequences of selecting a shorter or longer duration?
- What minimum down payment is needed, and are there any extra charges tied to the down payment, such as mortgage insurance?
- Over the mortgage’s lifetime, what is the total cost of borrowing, including all fees and interest? Could you provide an itemized list of these expenses?
- Are there any penalties or limitations for prepayment if I decide to settle my mortgage early or make extra contributions?
- How long is the mortgage term, and what occurs upon its conclusion? What are my alternatives after the term finishes?
- How frequently must mortgage payments be made, and can I select a payment plan that aligns with my financial plan (for example, monthly, bi-weekly, accelerated)?
- What steps are involved in the mortgage approval process, and what documentation will I need to provide?
- Are there any particular programs or incentives for first-time homebuyers I might qualify for?
Navigate Your Mortgage Journey with Confidence: Contact me for an introduction to Sanja.
