Your key consideration for mortgage financing is affordability. In order to qualify for a mortgage, you must, among other things, be able to afford to make your monthly mortgage payment.
Three factors determine what your monthly payment amount is:
- Mortgage amount
- Repayment period
- Interest rate charged
Your mortgage amount will be based on the amount of equity or down payment that you can provide after you have decided on the price of the property you want to buy or build. The repayment period and interest rate charged are variable factors and will affect the amount of your mortgage installment.