Ask yourself these questions:

• Do I have enough of a surplus of income vs. regular expenses?
• Is cash flow regular enough to permit monthly or weekly repayments?
• What can I afford?
• What are my debt payments now?

Examine your financial situation. Compare your income to your regular expenses, and make sure that you can repay debt without causing yourself hardship.

Ten questions the bank will ask you:

• What is your job? 
• How long have you worked there?
• What is your total gross family income?  
• What is your date of birth and social insurance number?
• Do you currently own or rent the place where you live? 
• What is the monthly amount of rent or mortgage you are now paying? 
• If you are a homeowner, what is the current market value of your home?  
• What outstanding loans do you have? 
• What are your assets – car, home, investments – and their value? 
• What are your monthly liabilities? (include all regular bills and payments plus minimum credit card payments)

Twenty questions you should ask your mortgage representative:

• How can I increase or decrease the amount I have to pay each payment? 
• Can I repay without penalty? 
• How long will it take to get my application approved? 
• What’s the most efficient way for me to make my loan payments? 
• Can credit life insurance cover a co-applicant and me? 
• What kind of collateral, if any, is required to secure the loan? 
• What is the difference between term and amortization? 
• How will different amortizations affect the total interest I pay? 
• Will the information I give you be kept confidential? 
• If my credit rating is unsatisfactory, what can I do to improve it? 
• What is the interest rate and term? 
• What happens if I want to get out of the mortgage before the term is up? 
• Will I be required to pay for an appraisal? If so, how much? 
• Are there any application fees? 
• What will the CMHC fee be and how can I avoid it? 
• What about property taxes? How are they paid? 
• What happens if I put 10, 15, or 20% down payment rather than 5%? Can you calculate my payments? 
• What other services does your financial institution offer me? 
• Am I eligible for any government program like the OHOSP or RSP Home Buyers Plans? 
• What is your best advice for me?

Thanks in part to Brad Chambers from Neighbourhood Dominion Lending for this article. He can be reached at 519-318 6998,  Tell Him Our Team sent you!