Buying a home is probably the single most expensive purchase a person will make during his or her lifetime. However, not understanding the various facets of your mortgage options or the buying process could wind up costing you dearly if you aren’t careful.

More often than not, these errors of judgment are the outcome of falling prey to the numerous myths and misconceptions that exist due to the lack of accurate information.

At Mortgages For Less, we want you to enjoy the fulfillment of owning a home with the least amount of fuss over a mortgage. To help you do this, and steer clear of any false notions, we have debunked three of the most widely believed myths about mortgages.

1. Only First Time Homebuyers can put 5% down on a home.

There was a time, where only First Time Home Buyers were eligible for a five percent down payment. Everyone else needed at least a ten percent down payment. This has not been the case for a very long time, and a five percent down payment is available to anyone looking to purchase a primary residence or a second home.

When you put less than a twenty percent down payment there is always the need to pay for ‘mortgage default insurance’ which is added to the balance of the mortgage. Aside from this charge, there is no reason you can’t put a five percent down payment every time you purchase a home. This allows you to use sale proceeds from your current home to pay down debt, and then start fresh with a new mortgage on your next home.

2. Self Employed people can’t qualify for a mortgage.

This is only true if you are self-employed for less than two years, and don’t claim enough income on your personal taxes. Once you have a two-year history of claiming self-employed income on your taxes you are treated by mortgage lenders the same way as a salaried individual at the same income amount. There are so many advantages to being self-employed, and as long as you file your taxes and claim the income, it won’t be a disadvantage to you when you are trying to qualify for a mortgage.

3. It is better to wait until you have 20% down payment to avoid mortgage insurance.

The problem with this is that for most people if they are not paying a mortgage, they are paying rent somewhere. 100% of your rent payment is an expense that you will never get back. Buying a home with a smaller down payment and paying the mortgage default insurance premium allows you to start paying toward equity in the home. In a healthy real estate market, it also allows equity to appreciate in the home. It is a known fact that homeowners have a higher net worth than non-home-owners. Waiting costs money and is a lost opportunity.

If you’re looking for the best mortgage broker in Calgary, AB, get in touch with Joshua Tagg at Mortgages For Less. I will ensure you do not fall prey to any myths and will help you get the best mortgage rate and terms available. For a complete list of my services, please click here. If you have any questions about Joshua Tagg at Mortgages For Less, I’d love to hear from you. Contact me here.