Definition
A home loan that you repay over time, usually with monthly payments that include both principal and interest.
What to consider
- Ensure your monthly payment fits comfortably in your budget.
- Regularly review your mortgage details to see if refinancing makes sense.
- Think of your mortgage as a long-term commitment that builds your equity.
Real world scenarios
- Janine weighs the pros and cons of fixed-rate versus adjustable-rate mortgages before purchasing her first condo. She ultimately chooses a fixed rate for predictable monthly costs.
- Sergio refinances his mortgage when interest rates drop, reducing his monthly payment and saving on total interest over the life of the loan.
- By placing a 20% down payment, Mei avoids private mortgage insurance, reducing her overall mortgage-related expenses each month.
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