Buying a property is buying a lifestyle, as Pierre-Raphaël Comeau, senior advisor, financial planning, at Laurentian Bank Securities (LVBL) points out. “Saying yes to a house also means saying no to certain expenses, such as travel or restaurants,” he says.

The latter likes to pass the “reality test” to first-time buyers. He calculates with them the total monthly cost of the coveted property (heating, maintenance, insurance, etc.) and compares it with the current expenses related to the rent. “You can then set up a savings plan before buying the property. In addition to the budget, other projects are to be considered.

“Just as you have an investor profile for your investments, you have a borrower profile for mortgage financing,” says Jonathan Dion, Mortgage Representative at Desjardins. He explains that someone who is risk averse might prefer the fixed rate, which is much safer since the rate and the payments will be guaranteed over time. The lowest rate is therefore not necessarily the most suitable for you.

What happens to your mortgage agreement in the event of death or disability? This delicate question deserves to be asked. “Banks generally offer life and disability insurance as part of the mortgage product. It’s not a stress you want to deal with when you’re in the middle of it. Better to have an umbrella before it rains,” says Pierre-Raphaël Comeau.

The wealth management expert reminds us that the legal aspect should not be neglected at a time when the mortgage often lasts longer than the couple. “We buy together most of the time. In relation to the mortgage, we will be jointly and severally liable for the debt. This means that if one of the two is no longer able to pay, the other must take care of it. »

Mortgage terms vary from institution to institution, notes Jonathan Dion. “Do borrowers have a mortgage margin? Is it possible to make early repayments of its funding? If so, what are the conditions? Can mortgage payments be doubled? There are lots of little clauses that potentially allow you to repay your loan faster and save interest in the end, ”he illustrates.

Transform a variable rate into a fixed rate within the term, refinance your loan without going to the notary and use the practice of moving (which consists of taking the financing of a property that you are selling and transferring it to a new acquisition) are all elements that change according to the flexibility of the institutions.

The term of a mortgage is the length of your contract. Economic forecasts are taken into account in the choice of term. “If we expect interest rates to go up, maybe we’re better off going with a longer term,” said Jonathan Dion.

The same consideration is required for the amortization period, i.e. the number of years during which you repay your loan. “Depending on borrowers’ ability to repay, a longer amortization will give them more liquidity for the time being. Conversely, a shorter amortization will increase payments, but save a lot of interest over the term of the financing. »

Prequalification allows future buyers to have an idea of ​​the financing they could obtain. It does not require a credit check or validation of documentation. The more official pre-authorization confirms this amount.

“I think this is a crucial step, which guides the rest of the project,” says Jonathan Dion. However, this is not mandatory even if more and more real estate brokers require documentation to make a visit. Pre-authorization also facilitates the search for a property and the process when filing a promise to purchase. »

Without wanting to preach for his parish, Jonathan Dion believes that it is essential to be helped by a specialist throughout the process. “Counseling should be tailored to your needs, depending for example on the type of property or your level of affluence. As this transaction is often a life project, it is important to choose someone with whom the current passes. The expert can also put you on the track of promotions or advantageous criteria.