A mortgage is very crucial and beneficial when it comes to owning your own home. However, many people struggle to find the right mortgage for them because of the many misconceptions they believe. To learn the truth behind these common misconceptions, keep reading below.
1. Good Mortgages Are More than Just Their Rate
Many people will make the mistake of just focusing on the rate of the mortgage when it is much more than that. The rate of your mortgage is definitely important. However, you also need to consider down payments, closing costs, your interest rates, and other points when you are deciding on a mortgage. All of these are important factors that will determine whether or not a mortgage is the right one for you.
2. Mortgage Brokers Do Not Usually Charge Fees
Some people believe that mortgage brokers charge fees. However, most of the time, they will not charge the client a fee. Instead, they earn money by getting a finders fee from the mortgage lender directly, and this should not be directly taken upon the client. So, if you are hesitating whether to get a broker or not because of possible fees, you can check with them. They most likely do not charge anything or will only have a very minimal fee, if ever.
3. The Ottawa Mortgage Market Is Stable
Ottawa residents are concerned about the supposed bubble that could topple over the mortgage market. However, the truth is that the bubble does not exist, despite what many people think. The mortgage and real estate market in Ottawa is stable and is not something that would topple over any time soon. Instead, the real estate bubble is centred in Toronto and Vancouver, but even then, it is not too big of a bubble to be a major concern for you.
4. Reverse Mortgages Are Not Bad
This is a huge misconception that many people have. Many people who have heard of reverse mortgages assume that they are bad for the elderly. However, this is not the case at all. Reverse mortgages are basically a loan given to the elderly so that they are able to live comfortably in their elderly years when they are no longer working. This loan can be paid off anytime and does not need to be necessarily repaid immediately while the client is alive and living on their property. It works out well for them to do things they want without worrying about their finances, and their property remains in their names, as well.
5. Bank Loans Are Better
This is not necessarily the case. In fact, bank loans are more difficult to deal with as they often have a standardized process that they follow, which makes it more difficult to appeal to them in case you face an emergency. They may also require a lot more documents and could be stricter when it comes to qualifications.
Mortgage lenders are often more forgiving and flexible. There are also many mortgage lenders out there, giving you many choices when it comes to your mortgage needs.
Buying a home is an important decision. Having a mortgage is a good way to make your dream of owning a home come true. As long as you are aware of the common misconceptions, you will be able to make the right decision for yourself and your family.
If you are looking for mortgage services in Ottawa, then you can contact Ottawa Mortgage Services. We are a mortgage agency that will be glad to assist you with pre-approvals, refinancing, and debt consolidation. Get in touch with us to learn more.