5.4.4 Questions to ask about mortgages

1. How much can I afford to borrow? (Use your income and expense budget to calculate what you can afford. Don’t plan on spending every penny in your income—leave a cushion in your budget for unexpected expenses. The Financial Consumer Agency of Canada’s interactive Mortgage Qualifier Tool can help you estimate how much a financial institution will lend, but it may be more than you can afford comfortably.)

2. How much will I have for a down payment?

3. How much of an increase in my mortgage payments will I be able to afford if interest rates go up?

4. Have I shopped around to find the best combination of interest rate and features for my needs?

1.What is the interest rate? What is the term?

2. What fees do I have to pay?

3. Can I make extra payments when I have money available?

4. How can I save on interest charges? What options do I have?

5. What options do I have if I want to pay my mortgage off early?

6. If I sell my house or property before the scheduled maturity date, will I have to pay an extra charge?

If Yes, how much will the charge be?

7. If I sell my house or property, can I transfer the remaining amount of my mortgage and the terms to a new property without paying an extra charge?

If Yes, what fees or limitations apply?