Low Mortgage Rates – Allowing Individuals to Finally Become a Home Owner

11/06/2013 11:36

Much thanks to the low mortgage rates available today, your dreams of finally becoming a home owner has been made a lot easier to realize. There are many benefits of buying and owning a home as opposed to simply renting a property. Unlike renting an apartment, a unit, or a home, buying one is a worthy and sound investment, as the overall value of the property can appreciate over a period of time. In addition to this, owning a home can also help you accumulate some form of equity.

Having your own home will also provide you with long-term financial stability and security – this is something that you can leave to your loved ones. If you are still renting, or if you have rented, think about how much money you have spent paying your landlord. You could have used this money instead to pay off your mortgage – the rate of interest that will be charged by a lender when you take out a home loan.

One thing to keep in mind when taking out a mortgage loan is that the more money you put in for the down payment, the lower the amount of money you would have to borrow. What does this mean? It simply means that the greater the down payment you will be able to make, the more money you will be able to save in the loan interest over the duration of the loan. As stated by the Canadian law, banks will only be able to provide mortgage financing to those who can secure a minimum of 20% down payment, unless the mortgage will be insured against default. Getting mortgage default insurance can be a great help to you when purchasing a home. This will also allow you to build equity sooner.