Mike Bolger REALTOR® in Kitchener / Waterloo

People who can afford their mortgage payments but cannot afford anything else are called House Poor. You don’t want to find yourself in this situation. Buying a home that you can't afford will place significant restraints on your financial life. Here are some things that can assist you in finding a house that you can realistically afford. The first affordability rule, as set out by the Canada Mortgage and Housing Corporation (CMHC), is that your monthly housing costs that include the mortgage principal and interest, taxes and heating expenses (P.I.T.H.) should not exceed 32% of your gross household monthly income. For condominiums, P.I.T.H. also includes half of your monthly condominium fees. The sum of these housing costs as a percentage of your gross monthly income is your GDS ratio. What is your GDS ratio and can you pass the mortgage stress test? Use this mortgage calculator , no more than 30% to 32% of your gross annual income should go to "mortgage expenses...

Are you getting a new mortgage and considering a variable rate? Express caution because the best variable rate could cost you more in the end. With house prices soaring in the Kitchener and Waterloo area, homebuyers are desperate to get as large a loan as they can. The Huffington Post published an article about lenders who are pushing riskier mortgages on Canadians. Unfortunately, banks are always looking for ways to make more profit and will persuade you to do what is the best interest of the bank. Be wise and do your research before committing to a mortgage. The Huffington Post says it's the worst time possible to pick a variable-rate mortgage. Who has your back in the biggest purchase of your life? I know some reliable mortgage brokers that are in my network who I trust to give my clients the best advice possible. If you need mortgage advice, let me know, and I could connect you. Contact Mike Bolger Now (519) 616-2656 Here is the article: http://huff.to/2nepBFu