3 Myths about Mortgages

Mortgage Rates are always a trending conversation or topic in the news. This is because there are so many opinions about how to manage your mortgage best. They come at us from banks, mortgage brokers, financial investors. 

And that is not all. Our family and friends bring their thoughts, ideas and opinions to us as well. 

It’s a challenge to discern what is the best choice! 

Everyone has a different story, circumstances, and factors to consider when managing and making decisions about their mortgage. Therefore, it is not a simple black and white template that works for all. However, some things can help us identify the relevant factors and help in peeling back the layers of tough mortgage decisions and planning. 

I often hear people who believe these myths about mortgage rates:

Myth #1

I will never be able to afford a mortgage

Awareness is power, and before you can consider how to manage the most significant investment of your life, you must know what you have and what you can do with it. Most people are shocked to learn that there are options to get into the real estate market they may not have realized. The best way to do that is by creating, owning and buying into a budget that clearly outlines where you are, what you can count on for income, and realistically accounts for what you spend. A trusted realtor will help guide you through the steps to help you figure out what you might be approved of for a mortgage and help obtain the pre-approval assurance before you go house hunting. 

Myth #2

I am going to lose my home when I have a life transition

I continually hear about people worried over the fear of losing their home when a crisis hits, such as unemployment or divorce, or they are beginning to consider a change in their lifestyle retirement.  The truth is that mortgage carriers want to keep you as clients, and there are creative options to get homeowners to keep their homes during transition times. 

Reverse mortgages are my absolute favourite mortgage management solution! They allow you to keep your home longer once your budgetary balance is not as profitable short-term or long-term as earlier in life. This will enable you to enjoy a slower and less demanding lifestyle but keeps you in the investment that not only continues to grow in value but still offers you joy in being able to live there. Of course, a reverse mortgage is not for everyone but can be a fantastic solution if your circumstances and lifestyle would benefit from it. If you are cautious or nervous about whether reverse mortgages are a favourable option for you, ask a professional who you trust. 

Myth #3

I will be house poor if I buy a house.

The thought of buying a house and then being unable to renovate, buy furniture or ever do any of your favourite travel or entertainment experiences that have been an enjoyable part of your lifestyle is a fair concern. But what many people don’t realize is the opportunities with a mortgage to use the equity to help with other important expenses. Doing your dream renovations or sending your child to University does not have to be impossible or stressful! Using the equity in your home can be a great solution to allow you to get the money for these things to happen that are held up in your largest investment, your home. It may be more accessible than you think. 

The most important thing to note about mortgages is that it doesn’t have to be a scary word. On the contrary, mortgages are a positive thing in life. They provide more options for you to build your resources and enhance your lifestyle. Best of all, the money you spend on your mortgage is being paid back to you, and you will always reap the benefits of homeownership in the long run. 

Got questions? I am here to help! Let’s chat.  

Mortgages do not need to be scary!

Read on about how to make mortgages work for you and your family.,