BEST ADVICE EVER
Don't get talked into a payment that exceeds your budget! That is soooo easy to do when house hunting.
Don't fall into this trap. I'm always astounded at what seems to be increasingly the "new norm" when it comes to mortgages - 25 years, even 30. Heck, in the USA I'm hearing about 40 and 50 year mortgages.
Do you really want to be 60 or 70 years old and still making mortgage payments?
The best financial decision we EVER made was to buy a house that was way under what the bank approved us for. Don't get me wrong, it's still a pretty nice little house (Detached, 2 car garage, 3 bedrooms, pool, etc) but it was almost $100,000 under what the bank approved us for.
The result? We took a 15 year mortgage. The extra money that we would have spent on a 25 year amortization on the $100,000.00 more we could
have spent goes into our payments instead, and in the end that means that we're mortgage free a decade earlier - in our early 40's. For us, the mortgage free reality is only a few years down the road now, and I'm looking forward to the financial freedom that's going to come with it.
30 year mortgage? I just can't wrap my head around that. It seems patently ridiculous to me. I wasn't even terribly comfortable with 25. So what if someone else has a bigger or fancier house than you - ultimately, I guarantee WE get the last laugh, and a much more comfortable retirement.