Understanding the budget for your mortgage
In this video, Toronto mortgage broker Chris Molder discusses why it’s important to understand your budget and how much you can afford to spend on a home.
Don’t feel like watching? Find the full transcript below!
If you’re curious about your budget and how a broker can be your guide, this is for you!
How a broker helps you find your budget
Chris: [00:00:00] A mortgage broker does so much more than just getting you a mortgage or getting you an interest rate. It’s really important that a good broker helps you not only understand what you qualify for as a mortgage, but more importantly, what it is that you can afford. Now, before you can make any decision to purchase real estate, you need to have a really open and honest conversation with yourself about what you can afford. Realistically, it’s not good enough just because you have a friend or a colleague or a family member or somebody that, you know, that made a purchase of a detached home in Toronto work or the purchase of a condo in Toronto work. And you feel that you compared to them similarly, that that is exactly what you can afford. Maybe you can do better or maybe you need to scale back those expectations so that you don’t get yourself into trouble. So how do you avoid getting yourself into trouble and how do you determine what it is that you can actually afford? I think that is where a mortgage broker can provide a lot of value.
Questions to ask yourself
Chris: [00:01:08] You know, not only is it just a question about rates and lenders and products. I find one of the things that I do more than anything else as a broker is helping people with that conversation and guiding them through it, asking the right questions to help land on what is appropriate for you. It’s really important to ask the right questions and give honest answers to the questions that are around things like what type of lifestyle do you want to live? What are you willing to sacrifice to make a home purchase a reality? Are you going to give up travel, dinners out, whatever it is, your transportation, what gets sacrificed in order to make it work and work within your budget and cash flow? Also, questions around desirability for the future.
Plan your budget around your future
Chris: [00:01:59] What goals and dreams do you have for the future? What are you saving for? Is it a family? Is it more travel? Is it career moves in the future? So all these things are important considerations when we talk about mortgage financing and how to determine what you can afford through that conversation that we really help to guide you, to make you understand what is appropriate for you, and then set out the roadmap so you can proceed with confidence knowing that you’re making the right decision and you can now focus on the difficult task of finding an appropriate home for you.
Need more information?
Chris: [00:02:36] My name is Chris Molder. I am a Toronto-based mortgage broker and I love having this conversation with my clients. So if you’re a little bit lost and you’re not sure about affordability and qualification for a purchase that you would like to make, I’m going to invite you with a standing invitation to give me a call with confidence any time. I’m just a phone call or an email away, and I look forward to talking to you soon. Bye for now.
You can contact me anytime to get started. Book a call directly via my calendar below, or get in touch with me here.