Save Money On Your Next Mortgage Transaction

Buying a home is not a “buy now deal with it later” process rather one that should be researched properly before you get yourself into hot water. There is so much to learn and the buyer and seller that are best prepared are the ones that come out on top.

Any time you are ready to make potentially one of the biggest investments of your life such as a mortgage loan take a moment to invest in yourself and your wallet.  Buying a home is a confusing, ever-changing process, with a lot of steps along the way.  All of those steps can end up costing you in cash and stress, so know where you are headed before you start the house hunt.

Whether buying your first home, refinancing, or selling and buying, the following tips could help to save you money on your next mortgage transaction.

  1.  Speak to your Home Insurance person ahead of time; Lawyers/Notaries are required by the lender to prove you have Fire Insurance, most Insurance Agencies will charge an “Insurance Binder Fee” to supply the lawyer that information.  Call ahead and make sure they don’t charge you…or go to a different agency.
  2. When shopping for the right Lawyer or Notary, ask for the “all in” price.  Many make it confusing by saying what their fee is without all the disbursements, tax etc.  If you are buying, ask for a quote on the total price of transferring the property into your name and putting your mortgage into place.  If you are buying and selling, make sure to specify that you have a current mortgage etc.  Being clear up front will save you down the road from surprises.
  3. Review your current life insurance/disability package with your Human Resources Department at work as well as your Insurance Broker (if you have one) to ensure you have proper coverage.  As soon as you have removed subjects on a purchase you are liable for completing the contract, regardless if something happens to you or your spouse.  Having sufficient coverage is one area we see consistently that people ignore.
  4. Rely on experts, not your buddy.  We see this all the time with our clients they have a friend who is a carpenter who does their inspection for them, they have an Uncle who is a lawyer do their conveyancing, they have their Aunt act as their Realtor.  Too often the Carpenter doesn’t know what he is really looking for, the Uncle doesn’t normally do that type of work, and the Aunt who is a Realtor works part-time on 1 or 2 deals a year.  Would you trust a Doctor who is part-time to operate on you?  Why trust your biggest financial transaction to people who aren’t experts in their field?
  5. Do a budget before you move and stick to it!  Too many people move in and then decide they need to buy all sorts of things to make their home perfect.  Take your time!  It’s better to have a list of things you would like to do, and slowly tick it off than to have the whole list complete and not be able to pay your mortgage payments!
  6. If you buy a new Condo, Town-home or Home, make sure to have your Lawyer review the agreement before you sign.  Far too many people sign agreements that are all in the developers favour.  If they don’t get your home finished on time what happens?  For most, they just have to wait until it is finished, which could cost you for storage, living expenses etc.  Don’t be afraid to add in clauses that protect you!
  7. Have your Realtor, Lawyer and Mortgage Broker review all the closing costs you will be subject to up front, so you know what you are dealing with and can budget for it.
  8. Always try to buy with future sales ability in mind.  Many people buy a place because it is significantly cheaper than something else on the market…usually they had a grow op in them, or something strange that makes them less desirable than another property.  The same will apply when you decide to sell it!
  9. Try not spend the maximum you are qualified for in your pre-approval.  It’s easy to fall into that trap, but remember, you want to still have a life even after you move in.

These are of course, just a few money saving tips; there are many areas that you can needlessly lose money when dealing in Real Estate.  Having the right Experts on your side will help with most when saving money on your next mortgage transaction.  Good luck!

Guest Post By: Michael Anthony Lloyd is a Mortgage Expert with DLC Canadian Mortgage Experts and has been helping Canadians with their mortgages as a Mortgage Broker since 1999.  Helping Canadians reach their “Mortgage Freedom Day” sooner is his goal.  He writes a Blog called The Daily Dig as well as leading the DLC CME team of 75 brokers.

Photo Supplied by: Michael Anthony Lloyd

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Mr. CBB
I’m from the UK and now a recent permanent resident in Canada. I bought my first house at the age of 21 after University then my second at the age of 24. I’ve always been fascinated with personal finance, savings, learning to make money and watch it grow while combating debts along the way. Canadian Budget Binder is a place where I get to share my experiences with personal finance and learn about yours along the way. I hope you stick around and check me out on Twitter, Facebook and Pinterest where I am active on all social media sites. Cheers, Mr.CBB
Mr. CBB
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Comments

  1. Mary F Campbell says:

    And also read at least a year’s worth of the condo/townhome’s Minutes of the Meetings, to see if there’s anything strange or that doesn’t suit you personally, that the HomeOwner’s Association has in place.

  2. Tasha Gray says:

    Thank for sharing your knowledge with me, you make it easier every month for me & my familt!

  3. Thanks for posting, I hope your friends find this useful…cheers!

  4. Tara Knott says:

    Another good read with helpful tips. Thanks!

  5. StevenandJessica Hart says:

    I’m not looking into buying a house anytime soon but it’s great to have these tips so I can be prepared when I do!

    • It’s important to always keep in the know how especially if you have a long term goal. Good for you and I’m glad you learned something today! Cheers and thank for stopping in mate. Cheers Mr.CBB

  6. Great article! Thanks! Once again, where was this 11 years ago when I was looking to buy my first home?! lol Oh well, live and learn they say. I was glad I had a lawyer to look over all of my paper work because he did find a bunch of stuff that the builder needed to change in the contract. I did trust too many people I knew and didn’t go to enough experts, so that is great advice. I so wish I was smarter about money back then…If I only knew then what I know now…we all say :-)

    • Don’t we all say that Jen ” wish I knew then what I know now”. Crikey I would have held on to my first flat and scored some serious cash (well to me lol). You are learning more everyday and the more you comment I can tell you are becoming smarter not only about your finances but also about life in general. Good for you and never stop learning Jen! Mr.CBB

  7. Thanks great article.

  8. Wendy LeDrew says:

    great post! Thanks for sharing. I often wonder why so many people re-mortgage? Why start back at square one, when you have some of the house already paid for? just to do your house up?!?! To me, I would want to get my house paid off A.S.A.P. and increase the value of my home as I can afford it, not put myself in more debt. Am I looking at this all wrong?….

  9. Great guest post MR!
    Having purchased my first home at a tender age of 25, I can say I lucked out with a great realtor, and her lawyer recommendation was solid. A great lawyer who cares can take away a lot of stress.

  10. joanne tjerno says:

    Wow great to read. So many things to think of when buying a home. Terrified to do it.

  11. Debbie C. says:

    Great advice!

  12. Congratulations to our random Quickie Winner….. Tasha Gray! Please contact me so I can send you your prize!! canadianbudgetbinder@yahoo.ca Thanks to all that commented and read this great guest post! Cheers Mr.CBB Sharing is caring… :-)

  13. It is certainly important that you stick to your buying budget and only look for homes within your price range. Don’t try to keep up with the Jones’. You’ll only fall into a debt trap.

  14. Christine Weadick says:

    Wow…. it’s been 21 years since we went through all this and so much has changed!!!!!! That’s for a great read!!!

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