Home Buying Defining Financial Terms
In the video Home Buying Defining Financial Terms, the Canadian Real Estate Association of Canada explains what the amortization period is. #FinancialLiteracyMonth
November is Financial Literacy Month and Trusterra Mortgage is here to spread the word about it. When home buying defining financial terms is on your mind it is always important to seek all avenues of information and resources that are available across the world wide web and more importantly from industry professionals, such as #MortgageBrokers, MortgageAgents, #Realtors, and others.
At the federal level you can find more information about this initiative from the Financial Consumer Agency of Canada. You can also search for hashtag #FLM2014.
Resources for Home Buyers and Sellers
The Canadian Real Estate Association of Canada (CREA), one of Canada’s largest single-industry trade Associations has recently updated and relaunched a web site full of resources for home buyers and sellers.
The CREA resources for home buyers and sellers site is catered for families, individuals, and investors who are looking to buy or sell real estate in Canada. The resources for home buyers and sellers site is full of helpful, educational, informative, and fun tools for everyone of all real estate investment backgrounds.
To wet your appetite here are some of things you will find on the the CREA resources for home buyers and sellers site:
1.) Assess Financial Readiness
Assess your present household budget and your annual income to determine if you are eligible for a mortgage and how much you can comfortably afford.
2.) Consider Mortgage Options
A mortgage is a loan, generally used to buy a property. How much you pay depends on how much you borrow (the principal), the loan’s interest rate, and how long you take to pay it back (the amortization period).
3.) Mortgage Default Insurance
When you buy a home with less than a 20% down payment, the mortgage needs to be insured against default. This type of insurance protects the mortgage lender in case you are not able to make your mortgage payments. It does not protect you.
4.) Research Government Programs
The federal government has assistance programs to help homebuyers. Research government program requirements to see if you are eligible.
5.) Finding a Home
Finding your perfect home can be a long process. Your REALTOR® will help identify the right type of home for you and continually research new listings in neighbourhoods that meet your needs.
6.) Making an Offer
After seeing many different homes, you have finally found one worthy of an offer! What are the next steps?
7.) Closing and Related Costs
Closing costs are the legal, administrative and disbursement fees associated with buying a home. Understanding these fees will help you budget more accurately. Remember these are additional costs over and above the price of the home.