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How to choose the right type of mortgage for you

Everything you need to know about choosing a mortgage

All homeowners dream of burning their mortgage papers after making that final payment. Smart planning and good decisions will help make that day arrive sooner than you’d think.

However, before jumping into the real estate market, you should figure out how much you can afford. There are many online tools that can help you do this.

Lenders want to make sure your total monthly housing costs – including mortgage payments, taxes and utilities – is not more than one-third of your household’s total gross income and that your total debt load (including car loans) is not above 40 per cent of your household’s total gross income.

All lenders have software programs that can figure out how much they’re willing to lend and how much house they expect you can afford.

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