So, what will it be for you today?

JOANNA STARCZYNOWSKI

Fixed rate? Variable rate? Open? Closed?... Sort of like going to your local coffee shop and asking for the double shot, low fat, extra hot latte! It can all be a bit daunting – there are so many varieties.

Choosing the right mortgage product, along with the suitable term, amortization, rate and financial institution, seems to be getting more complicated. Twenty years ago, there was no mortgage "shopping." You would go to your local branch, be told this is the current market rate for a one-, two-, three-, four- or five-year rate and the final decision was whether to go with an open or closed mortgage. No haggling. No deciding which amortization, as all mortgages were amortized at a maximum of 25 years. Down payments were either a minimum of 25 per cent for a conventional mortgage or, if less than 25 per cent, then it would be a high-ratio mortgage (and not all financial institutions even offered this option). Pretty simple, as the banker guided you through it all.

Well, times have changed.... The wheel kept turning as we went from just accepting what we were told to actually having choices. The mortgage has become part of our financial planning process and has allowed us to move into "affordable" homes with the no down payment, 40-year amortization and the open or closed rate options. It's like having that low fat extra hot latte with a double shot of espresso to keep the day going – though maybe the "latte" is no longer within your means because you've taken the mortgage with the largest payments and longest repayment time?

Have no fear, as there are many experienced and knowledgeable mortgage managers (brokers, specialists or advisors) within the financial world. They are usually available 24/7 to guide you through the most simple or challenging mortgage processes. They now meet you on your own turf, at the branch or at that local coffee shop to get the deal approved and closed for the home purchase. Also, they will probably buy you that specialty coffee while working on the application. Great deal!

Still not convinced? Just think that you could own your own place and let the equity increase in your most valued asset – your home. For a first- time buyer, it is the move from being a tenant or living at home. It is the opportunity to be an official homeowner and it's also the time to budget for this new purchase. What are the costs? Would you qualify? What should you expect? In what neighborhood do you want to live?

Buying your first home is probably the biggest purchase you've ever considered making. Knowing what to expect can make the process a lot easier.

How much can I borrow? Every situation is different. Your mortgage manager can help determine the best house payment or PITI (principal, interest, taxes and insurance), based on your income, existing debts, credit score and comfort level.

What type of credit history is required to get a mortgage? Customers who pay their bills within 30 days of the due date and have no outstanding collections, judgments or liens, receive the best credit ratings. A review of your credit report can determine if you qualify for a mortgage, based on your credit history. There are broad ranges of products for almost any credit situation. If you don't qualify immediately, the mortgage manager can tell you what steps need to be taken to repair your credit report.

Can I be pre-qualified for a mortgage? Yes, if you provide your monthly income, monthly debts and credit history, a prequalification can be done.

Do I need a realtor? You can look around on your own using the various Internet websites, flyers or driving to open houses. The best results, however, would be with a qualified realtor, who would help you out in finding the right community, place and price, based on your expectations.

First-time homebuyers are not the only category of clients for mortgage managers. There is a large influx of baby boomers looking to purchase by downsizing, or growing families wanting to upsize.

Then, there are the investors: clients looking to purchase properties using the equity from their existing homes (here again, your mortgage manager would assist you) or other cash assets as down payments and mortgaging the balance of the investment. Great idea for a real estate portfolio! But always keep in mind your three best friends: financial planner (banker), lawyer and accountant.

Investing into real estate is a risk but, with good, sound advice, it could be profitable.

With the continuation of low mortgage rates, flexible payment plans and affordability, you can call your mortgage manager/specialist/broker and have them take you out for that latte or cappuccino to discuss what your best mortgage options are today.

Joanna Starczynowski is a mobile mortgage specialist at the Royal Bank of Canada.

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