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Second in a series

Choosing the right mortgage is never easy. With an increasing choice of options available, the need for careful selection has never been greater. Not only are home buyers faced with a wide array of mortgage products, they seem to have less time and energy for sorting out what’s best for them.

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“There’s a lot more that comes into play when determining which mortgage is right for you,” says Todd Lawrence, senior vice-president, CIBC products and payments.

One of the most important things to determine from the outset is what you can afford, he says. “Home buyers need to look beyond the immediate considerations such as interest and monthly payments to get a true picture of what they can comfortably manage.”

For example, buyers should be aware of the many additional costs that go with acquiring a new home. These include closing fees, land transfer tax, GST/ HST, mortgage life insurance and legal fees. In some cases there may be survey, home inspection and appraisal costs. If you have a high-ratio mortgage (i.e. your down payment is less than 20% of the value of the home), you will also be required to pay a one-time insurance premium that is based on your mortgage amount.