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Mortgage Research

Mortgage Research

May 2023

Spring Cleaning Your Finances

Spring cleaning? Don’t forget to give your finances a polish.

As the weather gets warmer and spring blooms around us, it's the perfect time to refresh your finances and give them a good spring cleaning. As your trusted mortgage professionals, we are here to help you get started with some tips and insights on how you can get your finances in order and prepare for a brighter financial future.

Review your credit report

The best possible starting point for any review of your finances. Your credit report is a crucial component of your financial health, and it's essential that you check to make sure it’s accurate and up to date. You can obtain a free credit report from each of the major credit reporting agencies once a year, and you can also use a variety of services to get a rough update as well, so take advantage of this opportunity to review your report and ensure everything is correct.

Consolidate high-interest debt

While mortgage rates have gone up over the last year, they’re still considerably lower than other high-interest forms of debt, such as credit cards for example. Consolidating multiple high-interest debts into a single lower-interest mortgage can help you save money on interest and simplify your payments. By consolidating your debts, you can streamline your finances, reduce your overall payments, and focus on paying off your debt more quickly.

Review your subscriptions and cancel unnecessary ones

Many of us subscribe to various services, such as streaming platforms, subscription boxes, or gym memberships, and over time, we stop using them or no longer need them. Review your subscriptions and cancel any that you no longer use to free up some extra cash each month. 

Create a budget and manage your expenses

With higher interest rates affecting those with variable mortgages, creating a new and updated family budget is crucial to your finances in 2023. If you have a mortgage renewal coming up, it’s a great time for us to touch base so you get an idea of what your new mortgage payments will be. Adjusting to these new costs and developing a new budget will help you identify ways that you can reduce your expenses, and more importantly can reduce the chance of going into debt, and then adding interest and repayment to your monthly costs. 

Build an emergency fund

After doing the above steps, if you’re able to increase your cash flow, and reduce your expenses, building an emergency fund is crucial to helping cope with unexpected expenses and financial hardships. This can include job changes, medical emergencies, or even an unaccounted bill. Work towards building up a reserve of 6 months salary before starting to spend freely on things like expensive vacations or major non-essential purchases. 

Spring Into A New Mortgage

Looking to renew or refinance your mortgage this spring? Get in touch with your knowledgeable mortgage broker from The House Team today. Call our team now at (866) 559-5016!

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Four Ways to Take Control and Thrive in a Challenging Market

Couple reviewing their finances

If you’re struggling financially as a result of increased living expenses and interest rates, you are not alone.

A lot of Canadians are feeling a little helpless these days, with talk of rising interest rates and inflation dominating news headlines. The good news is that there are still ways to save money and increase your monthly cash flow even in an atmosphere with higher interest rates than we’ve been used to over the last few years. Here are a few proactive things you can do to take control of your financial situation:

Anytime is a good time for a mortgage review

An analysis of your current mortgage terms may reveal opportunities to improve your situation. For example, you might be able to refinance your mortgage and consolidate any other high-interest debt to cut your overall monthly payments or you may want to consider increasing your amortization or possibly changing your payment frequency to lower your mortgage payment. 

Don’t sleepwalk through your mortgage renewal

If your mortgage is renewing this year, you may be receiving (or have already received) an automatic renewal notice from your lender. Don’t accept their renewal offer without talking to a mortgage professional first! In most cases, we can shop around and negotiate a better rate than what you’re being offered. 

Plug the Money Leaks

Take a very hard look at your spending and challenge yourself to find ways to save. Every little bit helps – cancel one (or more) streaming services, cut any impulse spending, dine out less, consider carpooling, take advantage of price matching at your local grocery store …the list goes on and on. 

PRO TIP: Print off your credit card statements, highlight the items you didn't realize were still active or you aren't using anymore, and cancel these services.

Supplement your income

Tap into your talent or skills and consider turning that into a money-making side gig. Or if it’s feasible, consider building a rental unit in your home and let renters help you pay your mortgage. Any extra income can be put toward paying off debt, paying down your mortgage or just providing the much-needed breathing room every month.

Even in a higher-interest rate situation like the one we're in right now, there are still options available to reduce monthly spending and increase cash flow. You may make a more financially secure future for yourself and your family by examining the conditions of your mortgage, making cost reductions, and increasing your income. And although some of these choices may not be the most comfortable in the short term, the long-term payoff is well worth it.

Whether it’s managing your current situation, or looking to your future situation in regard to your home, building a plan is the best way to help you take charge of your financial destiny.

Let's Start Building Your Plan

Are you ready to reach your financial goals, including owning your own home? Let's talk! The House Team can help you maximize your financial fitness, build wealth, and reach your goals.

Get in touch with your knowledgeable mortgage broker from The House Team today and learn how you can start working out your finances and attaining your financial goals. Call us today at (866) 559-5016!

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