Before you apply for a mortgage

• Do remember that the shorter your amortization period is, the more you will save in interest charges.
  
  
• Do remember that adding a few dollars to your regular payment may save you thousands of dollars in interest charges and reduce your amortization period.
  
  
• Do keep in mind that the pre-approved loan may overestimate what you can actually afford to pay.
  
  
• Do keep in mind that changes in interest rates may substantially increase your housing costs when you renegotiate your next term.
  
  
• Do request a copy of your credit file before starting to shop around for a mortgage.
  

Don'ts

• Don't underestimate the extra costs that you must pay when you buy a house. These represent 1.5 to 4 per cent of the price of the home and should be budgeted.
  
  
• Don't underestimate a small interest-rate difference between offers. A small difference may have a major impact on the interest you pay in the long run.
  
  
• Don't compare offers made to you based on the interest rate only. Compare offers using the Annual Percentage Rate (APR) which – in addition to the interest rate – includes all other fees related to your mortgage.
  
  
• Don't forget that the financial institution may guarantee you an interest rate 60 to 120 days before you actually take out your mortgage. This may protect you from any increases that may occur during this period.