These are particularly uncertain times, and it’s understandable if you’re conflicted about how to plan for the future when it comes to something as trivial as how you spend your free time. Now consider something as significant as where you live. Deciding to buy a house is a huge event, and there are plenty of additional choices that must be made in the process.
Let’s assume that you’ve made that core decision, regardless of the challenging circumstances. You’re definitely going to buy a house and there’s no changing your mind. Well, you can start thinking carefully about what you want, where you want to go, and how you’ll move — but something you need to keep asking yourself as you do is how you’re going to cover the cost.
Image by Paul Brennan
The main question when it comes to money matters is this: are you going to get a mortgage? Mortgages aren’t right for everyone, but they work out well for many people. In this post, we’re going to set out some further questions you need to answer before you decide. Let’s begin.
Do you have a broker you can trust?
One reason why some people prefer to avoid mortgages is that they don’t trust their local brokers. Maybe they have bad reputations, seem shady somehow, or offer terrible deals. Since negotiating directly with financial institutions isn’t a good option for most, not having any nearby brokers that seem worthy of trust makes it hard to proceed with confidence.
Something to consider, though, is that advancing technology has made the traditional broker setup unnecessary. You don’t need a local broker because you can find one online. Let’s say you’re looking for property in Orillia, Ontario’s Sunshine City. If you want to find Orillia mortgage brokers, you can simply turn to an internet service like Breezeful — by using a trusted online broker with local contacts, you can get optimal results.
Do you mind a long-term commitment?
A typical mortgage will leave you navigating monthly payments for 25 years. That’s a long time, and it may be considerably more time than you’re comfortable with having that kind of financial burden. With the global economy suffering so greatly, can you rely on having a consistent income? What if you take on that commitment but find yourself in arrears, something that has loomed as a threat since the COVID-19 outbreak struck?
Now, unless you can make a lot of money very quickly, opting to avoid a long-term payment system here will mean that you’ll need to wait for quite a while to save up enough money to get a shorter mortgage or buy a place outright — and while you wait, you’ll likely need to pay rent, further eating into your funds. Due to this, if you really want a house, you may need to accept it.
Do you have any viable alternatives?
Maybe you’re willing to take on a long-term commitment but you don’t want a regular mortgage. If so, you do have options. You could borrow the money from a friend or family member using peer-to-peer lending services like Peerform. It’s a complicated thing to figure out, but agreeing on terms could allow you to pay interest to someone close to you and have much more flexible payment requirements.
Or perhaps you could join with some others to buy shared ownership in a house. You wouldn’t get an entire house, obviously, but you’d be able to get away from renting and get your foot on the property ladder in a meaningful way. Again, though, if you’re determined to get your own house and can’t afford to buy one outright, getting a mortgage is your most practical option.
So, is a mortgage right for you? It depends on what you’re looking for and what terms you’re willing to accept. If you can stomach a long-term commitment and really want to get your own place, then there are some great online brokers you can use to find optimal terms. Are you ready to make this life-changing decision?
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