MORTGAGES: Simple mortgage advise - save more, pay more
TD Canada Trust recently circulated some advice about purchasing home, advice it is especially keen on the inaugural buyer knowing about. Excerpts: "Consider a larger down payment -even 10 per cent instead of five per cent can make a big difference to the amount you'll end up paying over time. "Choose your mortgage options carefully -whether you choose a variable rate or a long term fixed interest rate mortgage will depend on your comfort with interest-rate risk and your ability to carry a higher mortgage payment should interest rates rise. . . . .
"Choose a shorter amortization period. Instead of choosing a standard 25 or 35-year period, select a shorter amortization period at the beginning of your mortgage and dramatically reduce the amount of interest you pay over the shortened life of your mortgage. "Make lump-sum payments on your mortgage. TD Canada Trust mortgage holders can make lump-sum payments of up to 15% each year.
"Buy the house that fits your budget not just your lifestyle -too big and you could be giving up that lifestyle just to pay it off.
"Take advantage of weekly or bi-weekly mortgage payment options instead of monthly. By doing this you can reduce the interest costs of owning a home and pay off your mortgage faster."
