Financing the purchase of a home or any other piece of real estate can be an expensive venture. It is, therefore, wise to consider taking out a mortgage loan if you don’t have all the cash up front. When taking out such a loan, it’s important to make sure that you get the best mortgage broker on the market. Altrua Financial comes highly recommended as they offer you the best expert advice and guarantee low mortgage rates from leading Canadian banks and mortgage lenders.
Before making the decision to get a mortgage, it’s important to consider the pros and cons.
Pros of a mortgage loan
Lower rates and fees
Mortgages generally attract lower rates and fees compared to other types of borrowing. This could save you a lot of money that you can use for other needs. However, some lending companies charge ridiculously high mortgage rates, so it’s important to conduct ample research before choosing your mortgage lender.
Tailored borrowing
There are different types of mortgages such as fixed rate, variable rate and tracker mortgages. This means that you can choose the one that best suits your needs.
Cheaper than renting
In the long run, taking out a mortgage is cheaper than renting. Putting money towards a mortgage means that you are paying for something that you will eventually own. It helps you build your own real estate asset rather than funding someone else’s.
Long term mortgages
It is possible to take out mortgages for as long as 30 years which means that you will be paying less money in monthly installments. This spreads the cost of the purchase over a longer period of time.
Ability to change your home
As a homeowner with a mortgage, you have the ability to change your home as you wish which is not possible if you are renting.
Increase in value
Property mostly increases in value over time. This means you could potentially pay far less for your home than its financial worth in the future.
More money to use on other investments
Purchasing a property through a mortgage gives you the chance to use your money on other investments such as starting a business or other alternative as you will only be using a small part of it to repay for your mortgage.
Cons of a mortgage loan
Debt
A mortgage loan is a debt which means you are agreeing that you will be repaying a certain amount every month.
Additional charges
Taking a mortgage is agreeing to repaying your loan with additional charges including valuation charges. In the end, you will be repaying more than the initial amount.
Secured loan
If you run into unexpected financial trouble and can’t pay your mortgage as agreed, you could lose your home because your mortgage is secured against the property you are buying.
Most people who would like to purchase a home cannot buy using cash due to the rising cost of real estate. Getting a mortgage loan can help you get the home of your dreams with affordable repayments.