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use caution when getting a mortgage edmimmtiribwmmmmiitom consumers buying houses this sum mer could spend almost as much time shopping for mortagages as they do comparing properties it would be exaggerating to say there are as many different types of mort gages available as there are different styles of houses but the variety of financing options certainly is astound ing says al coleclough registrar of real estate and business brokers for the ontario ministry of consumer and commercial relations according to coleclough the prolif eration of new types of mortgages was sparked by fierce competition among lenders most financial institutions offering residential mortgages have de veloped their own unique incentive plans to attract customers some lenders reduce application fees offer attractive early payment plans or run lucky draws the range of mortgage terms now offered is just as diverse some lenders offer terms from six months to ten years this new mortgage market is a boon for consumers who have had to face in flexible plans that often didnt meet their individual needs coleclough says but there are pitfalls hidden among the many advantages the registrar warns due to the sheer number of financing options confused consumers can wind up with mortgages totally un- suited to their personal circumstances dont be taken in by bells and whistles it would be foolish to sign up for a mortgage plan just to save a few hun dred dollars up front on the application fee the important things to consider are interest rates prepayment privileges early repayment penalties and terms once satisfied with the fundamental plan take a look at the frills offered as signing incentives coleclough says consumers should also be sure they arent relying too heavily on interest rates remaining low only a few years ago hundreds of ontario families lost their homes when rates skyrocketed always leave yourself a cushion a bit of untouched income to be called into use if rates go up again coleclough advises to calculate how much you can afford to put into mortgage payments set up a proper budget it should list costs for all necessities of life include any expenses for hobbies or activities you are not willing to give up add in all existing debt payments but dont include rent or current mortgage costs this should give you a rough idea how much it costs the family to live each month without accounting for housing subtract the total from your net monthly income your takehome pay this final figure represents your total remaining income never commit yourself to a mort gage that eats up all that leftover money says coleclough one major emergency or a small hike in interest rates when the mortgage is due for re newal could cause you to lose the house there are no rules on how much in come to keep in reserve house buyers have to use common sense and take an honest look at their own circumstances says coleclough it may help to check into potential in creases in mortgage costs by calculating monthly payments at a few different in terest rates the ministrys consumer information brochure how to buy a house offers more tips on financing and general advice about buying real estate for a free copy contact the consumer information centre at 555 yonge st toronto m7a 2h6 9631111 many lenders also produce booklets explaining their own mortgage plans and offering general information for house buyers be wary when borrowing money consumers facing monthly loan pay ments that total more than 20 per cent of their net incomes should be wary of get ting any deeper in debt say credit ex perts if too much of your disposable in come is committed to paying off past expenses its difficult to save money and often impossible to handle emergen cies says ann rowan a credit expert with the ontario ministry of consumer and commercial relations mccr according to rowan all consumers should set up budgets if only to get a clear picture of how their money is used once you know how much is spent on the necessities of life and existing debts its much easier to plan for the future debts require particularly careful scrutiny add up all the monthly pay ments for loans credit cards and any items purchased on installment plans dont include mortgage costs if these payments total more than 20 per cent of your monthly income after taxes it may be time to start cutting down on debts certainly few people should consid er taking out any more loans at that point rowan says remember if you endup overloaded with loans and cant make payments debt collectors could start knocking on the door your credit record may suffer for years to come and worst of all you could end up borrowing yourself into bankruptcy its also important to keep in mind that credit costs money add up all the in terest charges owed on loans for the rest of this year you may be shocked to dis cover the total cost of all your debts on a more positive note credit can be a useful convenient tool if handled with care after taking a hard look at your cur rent financial situation you may decide it is safe and reasonable to borrow money for a particular purchase be sure to shop around for the best terms money lending has become a fiercely competitive business and finan cial institutions are offering a wide vari ety of incentives to attract customers more than half a percentage point differ ence in interest rates can change month ly payments significantly discussions with a few loan officers can help consumers find the best deals available along with the most suitable repayment plans- family trust corp april top achievers markham unionville linda hawco stouffville uxbridge jane merrill noreen averv mary hogg just listed elegance plus ravine 214900 you deserve this classic greenpark 4 bed room greenhouse kitchen spiral oak staircase plus beautiful landscaping on ravine lot m lynn morrison 2941372 fabulous unionville 67 summerfeldt cres immaculate 4 bedroom main floor family and laundry gorgeous finished base 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