• Every week at Robert Floris’ Mortgage Architects office we get hundreds of mortgage and finance inquiries. The question we receive the most is what is the best mortgage for me? For sure, it’s a different answer for everyone. We will look at the concerns you should consider before making your decision.

    1. Risk Levels

    Mortgage studies will prove that having an adjustable rate mortgage [ARM] can save you more than a fixed rate. This year may be the exception to the rule. I really believe in the variable rate but my wife is wired differently. She likes to know what her payment is and to sleep at night. What is your risk level?

    2. Payment Options

    It is proven that paying your mortgage with weekly or biweekly payment help pay the mortgage faster. However, not all mortgages are the same. We have many clients who want to pay semi monthly [on the first and the 15th of every month] to coincide with their paydays and are happier with that set up.

    3. Payment Amount

    This is by far the biggest question we receive. What will my payment be? It is quite common to hear that clients do not want to be house poor and still want a life.

    4. Amortization Amount

    The longer you have a mortgage amortized such as 30 or 35 years, the lower the payment. However, you also pay the highest interest amount over the longer years. Always consider your own age when reviewing amortization amount.

    5. Down Payment Amount

    For most Canadians, it is difficult saving 20% of the purchase price. In this case, it has to be government insured. There is a variety of products in the home finance business depending on how much you can save.

    6. Flexibility

    Many Canadian homeowners are opting to take collateral mortgages. What is this? It is a mortgage in which the bank can lend you more money as the value of the home escalates without doing a regular refinance. The danger with many consumers is that it is easy to borrow money and you stay stuck in debt.

    7. Family Life

    This is an area we feel is very important in determining a mortgage choice. If kids are in your future, then determining daycare costs [usually $1000/mth] should be considered.

    8. Job Status

    Is your job in peril? Most likely many of our teacher police and firemen have escalating salaries. This is excellent in helping how to determine mortgage needs since your options will open as your income escalates.

    9. Financial Goals

    Having the right financing is huge in determining your lifetime goals. How many years do you want to pay the house off and can you still save for other family values such as vacations, education and retirement?

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