So over the last few years, the housing boom, we've seen historically low-interest rates. And now we're starting to hear more and more talks about the rates rising and what happens if their interest rates do rise. So the truth is, with interest rates, so low, there's only one direction they can go, which is up. But don't panic, well, we will see the rates increase slightly, we won't see them skyrocket anytime soon. And the rates and regulations are always changing. But there are always going to be subtle changes that you can make to the mortgage approach that is going to make a huge difference to you. So today, we're going to talk about the small differences that you can make that can either cost or save you 1000s of dollars when looking at a mortgage.

So whether you're buying a first home, your second home, or an investment property, there's always going to be some key factors that you need to consider before making your purchase.

6 most common mistakes people make before choosing their mortgage.

1. You can and should obtain a pre-approval before looking at a home. Getting a pre-approval is easy and can give you complete peace of mind before shopping for your home. To obtain a pre-approval, you can go into your local bank, you could even do it over the phone or submit an online application. This comes at no cost or obligation to you and entails a completed credit application. And a certificate that guarantees you a mortgage at a certain level that allows you to shop for your home.

2. Knowing your monthly payment that you're comfortable with. A lot of people make the mistake of looking at mortgages as a certain dollar amount that they're pre-approved for like they're pre-approved for $500,000 on a home. But what you need to consider is how much you're approved for on a monthly amount. You may be approved for certain a mortgage amount, but those monthly payments are going to be higher than you're willing to pay. So you want to look at a mortgage of what will my monthly payments be? Reverse engineer it and make sure that you're shopping for a home based on the monthly payments you can afford.

3. Considering your long-term goals where you see yourself in the future and choosing a mortgage that suits those needs. There are a number of questions you should be asking yourself before you commit to a mortgage:

- How long do you think you'll own that home?

- What direction do you think interest rates are going and how quickly?

- And where do you see your income going in the next few years?

- Is your income level expected to change, is it expected to go up, stay the same maybe go down?

- How will that affect your ability to pay your monthly mortgage?

The answer to these and other questions is going to help you determine what mortgage is right for you.

4. Make sure that you understand the prepayment privileges and payment options that different mortgages offer you simply structuring your payments so that they come on more frequently can significantly less than the amount of interest that you'll pay on your mortgage. For the same reason, authorized prepayment or raising the payments will have a significant impact on how much you pay in the end, and how many years it will take you to pay off your mortgage. These two options can save you 1000 cut-off years, but not all lenders offer them. So make sure you ask those questions before committing to a mortgage.

5. Ask if your mortgage is portable or assumable. A portable mortgage where available is going to give you the option to carry that mortgage to your next home and possibly avoid paying huge discharge penalties. This means you will not have to go through the whole mortgage process again unless you're moving up to a much more expensive home. An assumable mortgage is where the buyer of your home is able to take over that mortgage. This can be a very powerful tool at the negotiation table and make your home much more desirable. And again, can save 1000s of dollars in discharge penalties.

6. Make sure that you deal with an expert mortgage specialist. Typically there's no cost or obligation to inquire on mortgage specialists. And I would recommend that you interview multiple mortgage agents before choosing the right one for you. So I can tell you from experience. When I'm dealing with my clients who deal with different lenders, there are certain lenders that make the process seamless and are able to quick and avoid costly delays. There are also tons of horror stories about clients who chose the wrong specialist.

So if you ever have any questions about who's a good lender that you should work with, you can always give me a call and I can refer some of the best lenders that we work with.