Parade of Homes

money matters Choose the right mortgage for your needs By Donna Minkus >> buying a home may be the largest single investment you ever make. It's exciting, and it can be a bit daunting, but getting your financial house in order with a pre-approved mortgage will make the process go much more smoothly. "Meeting with your financial institution prior to purchasing your new home will give you a better understanding of what you can afford and what a comfortable mortgage payment looks like for you," says Leanne La Riviere, consumer lending manager at Steinbach Credit union's (SCu) Lagimodiere Branch. "Discussion points in a meeting with your consumer lending officer should include how much and where is your down pay- ment coming from; a review of your current income, personal assets and financial obligations, and any other costs that one should consider when purchasing a home," La Riviere says. Choosing the right mortgage is equally important. your lender can guide you through various fixed- and variable-rate options that may allow you to increase regular payments and/or prepay a certain percentage of the mortgage without penalty. CIBC Mobile Sales Force area sales manager Ernesto Ferritto says fixed-rate mortgages guarantee the interest rate will stay the same for the entire term. F i n A n C e S "With a variable-rate mortgage, the interest rate fluctu- ates throughout the term, based on the prime rate," Ferritto says. "Historically, variable-rate mortgages have proven to be lower than fixed-rate mortgages over the long term." Builder mortgages offer different options as well. SCu spe- cializes in new-home construction mortgages, says Aaron Denysuik, consumer lending manager at SCu's Linden Ridge Branch. "Whether you're building your own home or work- ing with a new home builder, our lending specialists have the knowledge and expertise to help guide you through this process," he says. SCu offers five types of builder mortgages, including a turn key mortgage, which is designed for homes being built and funded by the builder; an assumption mortgage, which is similar to turn key but requires an initial deposit, and a con- tract build mortgage where funds are advanced at specific stages of the build. CIBC builder mortgages include a draw mortgage, which also releases funds at different stages of the build, and a comple- tion mortgage, where a deposit is made to the builder up- front and the remaining funds are released upon possession. photo: www.gotcredit.com 126 Parade of Homes Spring 2016

• Cover