Need some advice about what to consider when purchasing a home?

Chris Wisniewski of TD Canada Trust has the following tips for homebuyers, especially first-time purchasers:

Big things

-Consider a larger down payment — even 10 per cent instead of five per cent can make a big difference to the amount you’ll end up paying over time.

-Choose your mortgage options carefully — whether you choose a variable rate or a long-term fixed interest rate mortgage will depend on your comfort with interest rate risk and your ability to carry a higher mortgage payment should interest rates rise. As anticipation about rising interest rates grows, more people may be want to explore longer-term fixed interest rate mortgages.

-Choose a shorter amortization period. Instead of a standard 25-or 35-year period, select a shorter amortization period at the beginning of your mortgage, dramatically reducing the amount of interest you pay over the shortened life of your mortgage.

-Make lump-sum payments on your mortgage.

-Buy the house that fits your budget, not just your lifestyle — too big and you could be giving up that lifestyle just to pay it off.

Small things

-Take advantage of rapid weekly or bi-weekly mortgage payment options instead of monthly. By doing this, you can reduce the interest costs of owning a home and pay off your mortgage faster. For instance, if you started with a 25-year amortization by making rapid bi-weekly payments, you would pay off your mortgage in 21.4 years. On a 30-year amortization, you would pay off your mortgage almost five years sooner — and on a 35-year amortization, more than six years sooner.

-Go to the bank before you start looking for a home and get a pre-approval for a mortgage. Wisniewski stresses that pre-approval is not a substitution for your own “gut check.” Prepare a realistic budget and take a look at the impact of mortgage payments. Based on your lifestyle, be realistic about whether you can afford the amount of the mortgage.

-When factoring in the costs of home ownership, think about all the extra costs you could be faced with that may be included in your rent, such as basic utility costs and home maintenance.