Mortgage Advice

More than a third of homeowners predict they will be nearing retirement before they own their own home, new research suggests.

Responding to a One Account survey, 36 per cent of homeowners predicted they would be at least 60-years-olds before they paid off their mortgage.

A further 20 per cent didn't expect to fully pay off their mortgage until some time in their 50s, with many also complaining that mortgage commitments were impeding on other areas of their life.

Just imagine as you're going through your favourite coffee drive-thru this week that a well-dressed gentleman stops and offers you $11,000 for your medium double double. Who would hesitate? We'd take the cash. It's not so far-fetched. In fact, if you take that coffee budget and apply it to your monthly mortgage payment a mere $30 extra per month -you could save yourself about $11,000 over the life of your mortgage.

For most Canadians, buying a home is the largest financial decision they will make in their lifetime. Yet, consumers across the country are more likely to painstakingly review dozens of investment possibilities for their portfolios than to scrutinize their mortgage choices. The mortgage world - like the investment world - can sometimes be confusing. There is a vast array of choices - open, closed, fixed, floating, long or short amortization, prepayment options, portability... and of course, the rate itself.

These are heavy days for Canadian homeowners. If you've been in your home even a few years, you've probably already enjoyed a modest climb in the value of your home. Even if you don't intend to sell, it's good to know that your real estate investment is doing well. But we're also enjoying an environment in which mortgage rates have reached historic lows.

That combination -- strong valuations and low mortgage rates -- has an unprecedented number of Canadians looking for ways to capitalize on the great opportunities available to them.

"A penny saved is a penny earned"... or so the old proverb goes. Of course, the value of a penny has changed somewhat from the time when your mother offered her wisdom on the value of keeping what you earn. Today, you could save thousands of dollars by simply making the right mortgage decision. If you're like most Canadian homeowners, your mortgage is a goldmine of potential savings.

Seniors today often live with a great deal of financial uncertainty. The retirement they imagined may not be consistent with the reality they face.

Forget everything you thought you knew about the benefits of taking a variable-rate mortgage instead of locking in for the long term.

A new study suggests the security of a five-year mortgage costs little or nothing beyond a riskier variable-rate mortgage, providing you get a jumbo-sized rate discount.

"Interest costs on discounted closed five-year mortgages have been close to, and often lower than, those of variable-rate mortgages since late 1996," senior Canada Mortgage and Housing Corp. economist Ali Manouchehri writes in the study.

Question: "What's the biggest financial investment most Canadians will ever make?"

Okay, that may have been an easy one if you read the headline of this column. For most Canadians, their home is their biggest investment - and their most powerful financial tool.

It's odd - given the importance of the mortgage decision - that many homebuyers will spend much more time deciding on which mutual funds they should invest in... or even which sofa to buy... than on which mortgage will best meet their needs.

Ask Denver mortgage loan providers what would-be borrowers want to know and the answer is simple. Those who are shopping for mortgage loans in Denver want to know what their rate would be for a Denver mortgage.

But for the average mortgage lender, the answer is hard to come up with at a moment

Renting a place has its numerous advantages but owning a home has its joys as well. Along with many other factors, investing in a home pays off only if you did your research and made a wise buy. While it's true that practice makes perfect, home-buying can be an expensive learning experience so it's better that you exercise caution right from the start.

Good thing, there are many resources available for first-time home buyers. Here are tips to get you started.