As a first-time homebuyer in Saskatoon, the process of buying a house can be daunting. With so many different types of residential mortgages available, it’s hard to know where to begin. That’s why we’ve put together this guide to help you navigate the world of home buying and find the right mortgage for you.
Getting started
The first step in the home buying process is to get pre-approved for a residential mortgage. This will give you a good idea of how much you can afford to spend on a house and what your monthly payments will be. To get pre-approved, you’ll need to provide your lender with some basic information about your income, employment, and credit history.
Types of residential mortgages
There are several different types of residential mortgages available, including fixed-rate mortgages, adjustable-rate mortgages, and hybrid mortgages. Fixed-rate mortgages have a set interest rate for the life of the loan, which makes them a popular choice for first-time homebuyers who want stability and predictability. Adjustable-rate mortgages have an interest rate that can fluctuate over time, which makes them a good choice for homebuyers who want to take advantage of lower interest rates in the future. Hybrid mortgages offer a combination of fixed and adjustable rates, which can provide both stability and flexibility.
Choosing the right mortgage
When choosing a residential mortgage, it’s important to consider your financial situation, your long-term goals, and your lifestyle. Do you want to pay off your mortgage as quickly as possible, or do you prefer a lower monthly payment? Do you plan to stay in your home for a long time, or do you anticipate moving in a few years? Your answers to these questions will help you determine which type of mortgage is right for you.
Sources:
- Canada Mortgage and Housing Corporation. (2022). First-Time Homebuyers. https://www.cmhc-schl.gc.ca/en/buying/first-time-homebuyers
- Government of Saskatchewan. (2022). Residential Mortgages. https://www.saskatchewan.ca/residents/housing-and-renting/buying-a-home/financial-considerations/residential-mortgages
- Bank of Canada. (2022). Understanding Mortgage Qualification. https://www.bankofcanada.ca/2022/02/understanding-mortgage-qualification/
- Ratehub.ca. (2022). Fixed vs. Variable Mortgage Rates: What’s the Difference? https://www.ratehub.ca/blog/fixed-vs-variable-mortgage-rates/
- Mortgages of Canada. (2022). What Type of Mortgage is Best for You? https://mortgagesofcanada.ca/what-type-of-mortgage-is-best-for-you/
- Canada Mortgage and Housing Corporation. (2022). Mortgage Calculator. https://www.cmhc-schl.gc.ca/en/finance-and-investing/mortgage-loan-insurance/calculators/mortgage-calculator