Always consider your financial capabilities. Do not go into unreasonable debt. Here are two rules to follow to find out what you can afford:
- You should probably be able to pay 10 to 25% of the purchase price with personal savings or with a helping hand from your loved ones.
- The monthly repayment of a mortgage loan cannot exceed approximately 1/3 of the monthly household income.
Take into account the costs that are added to your monthly payment, home insurance (also called fire insurance), balance outstanding insurance and property tax. Here are the mortgage shopping tips for you now.
The Fees for You
Some fees that arise from the purchase of a house need only be paid once (registration fees, notary fees, mortgage fees). If you want to calculate exactly how much these costs will be, you can consult the page “calculation of costs of deed of purchase. In the case of a new construction, you will pay 21% VAT on materials and working hours.
There are tax benefits associated with entering into a mortgage. The tax benefit varies from region to region and is subject to various conditions. Take into account that it is only 1.5 to 2 years after the conclusion of the loan that you will receive the first tax benefit.Consider whether you can benefit from a social loan, because it will be much more advantageous than the rates offered by banks. For Wallonia, you will find all the information on these loans.
Even more than for any other financial product, it is advisable to compare the offers! Check with several banks for the rates offered and try to find the most advantageous rate. You can also hire a credit broker, who will do this comparative work for you. A small difference in monthly payments can lead to a large amount over the entire term of the loan.
Take Your Time
Take the time to compare the advantages and disadvantages of different mortgage formulas. Choose the formula that suits you best: constant monthly payments or fixed capital repayments? Fixed or variable interest rate? Remember that it is also possible to combine different formulas!
You cherish the project of buying a property, but the world of mortgages gives you hives? You do not understand anything about all these stories of term, down payment, amortization, interest, insurance? Do not panic. Here is what you need to demystify mortgage loans and how to choose an informed loan!
The down payment
To buy a property, you have to pay a portion of the price of your pocket. This amount, called down payment or cash down must represent at least 5% of the sale price. So, for example, to buy a condo for $ 300,000, expect to have to pay a minimum of $ 15,000 in down payment.