If you have decided to buy a house and you are looking for a mortgage, you need to consider the following financial aspects of your situation and future plans:
- Annual household income. This is a basic calculation to make. Also, think about the possible changes to your income and repayment process.
- Down payment. According to current rules, you need to make at least a 5% first payment for taking out a mortgage. The amount of available mortgage is determined by this down payment.
- Amortization period. A long period gives you the possibility to make minimum payments. However, shorter period, while requiring higher payments, makes it possible to pay less on interest.
- Other expenses. Consider house related expenses, such as insurance, taxes and maintenance that you will have to pay each month.