The most important thing when taking out a mortgage is to make sure you can meet repayments. If you borrow more than you are ultimately able to pay back then your home may be repossessed. Therefore you need to be confident that you will continue making enough money to make those payments every month. Let's take a look at some of the other things to consider. Interest rates The Bank of Canada sets target interest rates eight times a year: in January, March, April, July, September, October and December. In turbulent economic times, it can change rates even between these periods. The interest rates sets by the bank of Canada do not directly affect the rate of interest payable on your mortgage, however, your lender is likely to react to changes made by the BoC. For example, if there is inflation (a steady rise in the costs of goods and services), the BoC may raise interest rates to discourage borrowing and encourage saving. If the interest rate remains raised, your lender will typically raise the interest rate on your mortgage. They will not be able to do this until the end of the current term. Hopefully, your income will have risen in line with inflation and you will be able to increase the amount you are paying each month without difficulty. This will probably depend on whether you can adjust your own wages or whether you are able to negotiate with your employers. Lender flexibility As with every kind of contract, the best advice is to read closely and read it twice! When taking out a loan it is very important to read the terms and conditions, especially those dealing with late or missed payments. Before you take out a loan you should have a clear understanding of what will happen if you are unable to make a payment. Some lenders will allow you extra time to pay, others will impose punitive fines. You should be clear on what the stakes are! Again, like interest rates, late-payment policies may change with inflation or if the lender has financial worries of their own. If you would like more advice with regard to mortgages, get in touch with a financial advisor today.