Canadians are definitely talking about the housing market… How do you navigate the rules? Is this the right time to buy? Are rates going to drop? (And when will the rates drop?) ! For many, it feels like some uncertain times ahead. If you’re wondering how to survive the Canadian housing market without a huge amount of stress and wasted money, here are 9 tips for you.
1. Take care of your credit
It’s so important to have good credit behaviours so you always qualify for the best mortgage rate. Pay your bills on time. Don’t let your credit accounts exceed 30% of the credit available. Before you cancel any credit cards, get advice. And don’t apply for a store card just to save on your purchase that day!
2. Let renters help pay your mortgage
A home with a rental suite can be a great option for homebuyers, especially if the area you love is pricey or you don’t want to buy a condo at a lower cost. It’s also a great option for existing homeowners looking to reduce their mortgage payment.
3. Check out the mortgage prepayment penalty
If you ever need to get out of your mortgage early, the right mortgage could save you thousands! Not all lenders calculate penalties the same way, and the differences can be substantial. It helps to know which lenders have the fairest prepayment penalties and I’ve got that information at my fingertips.
4. Choose low-interest debt
Whatever your need might be – paying down high-interest debt, funding education, a large purchase, investments, or renovations, your mortgage might be your most cost-effective financing option. If you have enough home equity, it’s worth checking out.
5. Home Buyer Tax Credit
When you buy your first home, you may be able to take advantage of the $10,000 non-refundable Home Buyer Tax Credit amount, which provides up to $1,500 in federal tax relief. Not sure if you qualify? Ask your accountant or look to the source.
6. Renovate over relocate?
The right renovation might be all it takes to turn the house you’re in, into the home of your dreams. It is almost always less expensive to renovate than to relocate! I have great renovation financing options if that’s where you’re heading!
7. Renew with your eyes open
When your lender sends out a letter suggesting you renew your mortgage at their current offer, get advice. Don’t renew with your eyes closed! This is your opportunity to negotiate the best possible deal!
8. Speed up your mortgage pay-down
Change from monthly payments to weekly or bi-weekly payments. Or, take your tax refund and put it against your mortgage principal. Your interest costs will go down with every dollar you’ve reduced on your principal. Here are some strategies for you to check out.
9. Don’t neglect your savings
In managing debt, you want to make sure you don’t need to use credit to get you through a financial emergency when your car breaks down or your washing machine quits. Make a point of setting aside a small sum every paycheque into a special emergency fund.
Bonus- # 10: Talk to your mortgage professional
And lastly, it’s always a good idea to get expert mortgage advice well in advance of buying your home, and then check in on an annual basis. Let’s take the time to review your situation and create your plan for surviving and thriving in the year ahead!
How to survive the Canadian housing market? 9 tips
Your mortgage blueprint for the rest of the year
Canadians are definitely talking about the housing market… How do you navigate the rules? Is this the right time to buy? Are rates going to drop? (And when will the rates drop?) ! For many, it feels like some uncertain times ahead. If you’re wondering how to survive the Canadian housing market without a huge amount of stress and wasted money, here are 9 tips for you.
1. Take care of your credit
It’s so important to have good credit behaviours so you always qualify for the best mortgage rate. Pay your bills on time. Don’t let your credit accounts exceed 30% of the credit available. Before you cancel any credit cards, get advice. And don’t apply for a store card just to save on your purchase that day!
2. Let renters help pay your mortgage
A home with a rental suite can be a great option for homebuyers, especially if the area you love is pricey or you don’t want to buy a condo at a lower cost. It’s also a great option for existing homeowners looking to reduce their mortgage payment.
3. Check out the mortgage prepayment penalty
If you ever need to get out of your mortgage early, the right mortgage could save you thousands! Not all lenders calculate penalties the same way, and the differences can be substantial. It helps to know which lenders have the fairest prepayment penalties and I’ve got that information at my fingertips.
4. Choose low-interest debt
Whatever your need might be – paying down high-interest debt, funding education, a large purchase, investments, or renovations, your mortgage might be your most cost-effective financing option. If you have enough home equity, it’s worth checking out.
5. Home Buyer Tax Credit
When you buy your first home, you may be able to take advantage of the $10,000 non-refundable Home Buyer Tax Credit amount, which provides up to $1,500 in federal tax relief. Not sure if you qualify? Ask your accountant or look to the source.
6. Renovate over relocate?
The right renovation might be all it takes to turn the house you’re in, into the home of your dreams. It is almost always less expensive to renovate than to relocate! I have great renovation financing options if that’s where you’re heading!
7. Renew with your eyes open
When your lender sends out a letter suggesting you renew your mortgage at their current offer, get advice. Don’t renew with your eyes closed! This is your opportunity to negotiate the best possible deal!
8. Speed up your mortgage pay-down
Change from monthly payments to weekly or bi-weekly payments. Or, take your tax refund and put it against your mortgage principal. Your interest costs will go down with every dollar you’ve reduced on your principal. Here are some strategies for you to check out.
9. Don’t neglect your savings
In managing debt, you want to make sure you don’t need to use credit to get you through a financial emergency when your car breaks down or your washing machine quits. Make a point of setting aside a small sum every paycheque into a special emergency fund.
Bonus- # 10: Talk to your mortgage professional
And lastly, it’s always a good idea to get expert mortgage advice well in advance of buying your home, and then check in on an annual basis. Let’s take the time to review your situation and create your plan for surviving and thriving in the year ahead!
Want to chat about your options?
And let me know what questions you have about your own situation!
Categories
Recent Posts