Refinancing Your Home

General Leslie Morris 12 Feb

When it comes to our debt, it may seem very difficult to pay it off. Equifax Canada, which provides consumer credit bureau information, reported that in the second quarter of 2017, non-mortgage debt has risen 3.3 percent. This is already a problem as many people throughout Canada are already struggling to make ends meet. Some people find themselves living paycheck to paycheck and they are unable to afford to pay off their debt.

If you are struggling to pay off your debts, it may be worth it to try and consolidate all of your debt into one payment. One of the best methods to do this is exclusive to homeowners in Canada. The Canadian Government allows homeowners to be able to borrow up to 80 percent of the appraised value of their home, minus the remaining balance on the mortgage. If you have paid a portion of your home’s mortgage off or if your home has just increased in value, then this method is a good way to get the money you need to pay off your non-mortgage debt off.

The method of consolidating your debt into your mortgage can help you to only have one interest rate payment for your debt instead of multiple payments at different rates. Consolidating them are a great way to get a handle on your debt.

This method is useful for things such as renovations that need to be made on your home or emergency repairs that cost more than you anticipated. For home renovations, this can actually add equity to your home and make your investment even better.Refinance-your-home

However, if you would rather pay off your debts than consider refinancing your mortgage. Your mortgage interest rate will more than likely be lower than any of the interest rates that your other debts are under. This can also save you money in the immediate future as you will not be spending as much when it comes time to make your payments.

One word of caution about this method is that it can be tempting to spend the available credit that you now have after freeing yourself from debt. If this happens then you will be in further debt than you were before you refinanced your mortgage and freed yourself from debt.

Another benefit to refinancing your mortgage is that you will have the option to change your mortgage rate from fixed to variable or back. This is a great thing if the market is favourable for one way or the other and you don’t have the ability to change that on your own.

Refinancing your mortgage is something that can be a great financial move if done right. If it helps to reduce your mortgage payment, shortens the term of your loan, or helps you out of your debt then it can be a wonderful decision to make. However, if you aren’t careful you could end up landing yourself into more trouble. Consider your financial situation and see if refinancing your home is a worthy move.

Renting vs Buying a Home

General Leslie Morris 2 Feb

In today’s market, there is an ever increasing worry about the price of homes. Getting a home is looking to be more expensive and many first-time buyers are worrying about making the big purchase. The question of whether it is better to try and buy something now or wait it out and remain a renter until the market cools down is on many people’s minds. Some people would argue that taking your savings and investing into the market now is the best thing to do as the market is probably going to continue to increase. Others would argue that it isn’t worth it to break into the market now and that it is going to be forced to cool down soon. Making that decision is something that you must make on your own but there are some things to consider.

One of the main things to consider about purchasing your own home is that once you purchase your home, it is yours. There is no longer a landlord that you must deal with, there isn’t the uncertainty that you may be forced to move because of a decision your landlord made. If there are any renovations that you want to do or if you want to do any work on your home, you are free to do whatever you want.
mortgage broker
The next thing that you must consider is that eventually, you can stop paying for your home once you purchase one. While a mortgage can last 25-30 years, you will always have to pay rent. Once you finish paying off your mortgage, the money you spent on the mortgage is yours to do whatever you want to do. If the idea of eventually paying off your home and no longer needing to spend money on it is appealing, it may be worth it to invest in a home now.

A home is one of the better things that you can use to build equity. Paying your mortgage on time is a very good indicator to potential lenders that you can pay your debts on time. The home itself is also a great source of equity and you can lend against it if need be. This equity can help you finance your next home or a potential financial investment.

However, there are some things that some people might not realize about owning a home. Once you own a home, you are bound to the property. If your job has an opportunity that requires you to move, you may not be able to move if you are bound to paying off your home. Your home ties you down and if you are someone who craves freedom, then having the freedom to move is great.

When it comes down to your decision over renting or purchasing your home, it is a highly personal one. There are benefits and downsides to both decisions. Purchasing a home is something that requires thought and is a significant financial decision. If you feel ready for it, then seeking out a good broker is a proper first step.