All posts by Clyde Curry

Top Benefits of Getting a Mortgage

buying a home

Nearly every person has a dream of owning a home. That explains why the government keeps promoting homeownership throughout the years. Remember that home investments boost the economy in a wide range of ways. Nowadays, you can easily get Canada residential mortgage to own a home and enjoy a lot of benefits for the homeowners. The following are some of the benefits of a mortgage.

Build Credit

Purchasing a home is a significant investment. Therefore, most homebuyers ought to obtain a mortgage to buy a home. In fact, obtaining a mortgage can help you build your credit rating when you make your monthly payments on time. Remember that higher credit ratings can help you lower the interest rates for borrowers and enjoy preferred status whenever banks make loans.

Enjoy Tax Breaks

Usually, property tax, points, and mortgage interest can be deducted from your annual tax returns when you have a mortgage. Also, qualified mortgage insurance can be deducted. Remember to fill the right tax return form to enjoy these benefits. A percentage of your homeowner’s insurance can be deducted. It is advisable to check with your tax adviser before you start claiming deductions and ensure all forms are completed properly.

Build Equity

When you obtain a mortgage, it means you can own a home. The truth is that owning a home is a huge investment you can ever make. Remember that homes can increase in value and help you build valuable equity. Ideally, equity offers you a considerable net profit when you sell your home. In fact, you can even pay cash for your subsequent homes.

Borrowing Leverage

When you stay in a home and fulfill your mortgage payments, you build borrowing power. Remember that equity is an important tool you can use to get another mortgage to pay for remodeling projects, pay for college fees, and meet other necessary expenses. Moreover, equity can be used as a line of credit for emergencies, investment property, and major purchases.

Freedom

Whenever you acquire a mortgage, your home becomes yours. Ideally, the deed that is filed in the courthouse will reflect your name as the owner of the home. In this case, you are in control, and you can modify your home to suit your specifications and do anything you want. Although you do not need permission from anyone, remember to respect your neighbors. Also, if you belong to a homeowners’ association, you will have to abide by its rules.