12 Jun Is a joint mortgage right for you?
This is part two of our blog on joint mortgages. After discussing the advantages and disadvantages of having a joint mortgage, we are going to address the different part of a mortgage as to how they look into a joint agreement and a non-joint agreement.
When it comes to mortgage payments, a joint mortgage may provide you with more affordable payments as it is spread between you and your partner, whereas in the non-joint mortgage, payments are heavier because there is no one with whom you can share the cost.
If you decide to purchase a home, you must have a down payment. With two incomes, you can probably afford to put more money into the down payment, a scenario that has many limitations when you only have one income. Your down payment will be less than what you can afford with a partner.
The other aspect comes with the responsibility and the fees for the house. Any home needs maintenance and repairs once in a while. In a joint mortgage, you can share these responsibilities and expenses, as opposed to paying for all of them by yourself. By the same token, in a joint mortgage, due to the fact that you are able to put a bigger down payment, your mortgage default insurance premium will be smaller or even nonexistent.
Finally, with more than one income, your chances of getting a better rate will increase as well. When you are by yourself and rely on a single income, chances are your rates may be higher.
However, if you feel this type of mortgage may not be the right one for you, there are always alternatives. You can wait longer while saving for a larger downpayment; you can consider the first-home buyer incentive or even see if yo can get a cosigner.
Don’t forget, we can help you find the right solution for you. Contact us if you have any questions or if you’d like us to work the different options with you.