Why buying your first home during inflationary times is good

Making Dreams A Reality!

 

Are you a first-time homebuyer concerned about rising inflation? It's understandable to have some reservations, but rest assured that there are still plenty of reasons why buying your first home is a great idea, even during inflationary times.

Firstly, Canada's housing market has historically been stable and resilient, even during economic downturns. This means that homeownership remains a reliable investment in the long run, and you can feel confident in your decision to buy a home.

Secondly, the Canadian government offers programs and incentives to help first-time homebuyers get into the market, such as the First-Time Home Buyer Incentive and the Home Buyers' Plan. These programs can help you get a foot in the door and make homeownership more accessible and affordable.

Additionally, as inflation drives up the cost of living, owning a home can provide a sense of stability and predictability in your monthly expenses. Unlike renting, where landlords may increase your rent at any time, owning your home means that your monthly mortgage payment will remain the same for the duration of your mortgage term.

Finally, by owning a home, you can build equity and wealth over time, which can help you achieve your long-term financial goals.

As a mortgage broker, I can help you navigate the Canadian housing market and find the best possible mortgage deal for your unique financial situation., now could be the perfect time to take the leap into homeownership.

So if you're a first-time homebuyer, don't let rising inflation discourage you from achieving your dream of homeownership. Contact me today to schedule a consultation and start your journey towards owning your first home.

Easy Ways to Repay Your Home Loan Early and Free Up Cash for Family Adventures
November 27, 2019 @ 5:57 PM by:

Most home buyers take out a mortgage to help finance buying a home. As a result, many homeowners are faced with a monthly mortgage payment during the time they are raising their children or sending them off to college. What if a way existed to pay off your home loan early in order to free up the money for the kind of adventures every family longs to have? Fortunately, a few strategies do exist that can help you to shave years off your mortgage term. All you need to do is incorporate as many of them as you can into your life to create the kind of impact you are looking to achieve. Here's a look at several easy ways to pay your mortgage off early.

Round Up Your Monthly Payment

Instead of paying the exact amount of your monthly payment, you can round up to the next even number. For example, if your monthly mortgage payment is supposed to be $1425, you can pay $1500. While this additional $75 may not seem like it is going to make a difference, it does. Plus, you probably won't even miss this small sum of money from your take-home pay

Put Your Bank Account Interest Toward Your Mortgage

If you have savings accounts at a local bank or credit union, you may want to consider putting the interest that you've earned toward your home loan. You have the option to do this at your discretion. However, if your money is tied into CDs, then you'll have to wait until the CD comes due. You won't miss this money because it isn't included in your take-home pay. Plus, it can help to whittle down the balance on your mortgage, especially when you combine it with other strategies.

Take Unexpected Financial Bonuses and Put Them Toward Your Mortgage

One way to pay down your mortgage debt is to take any unexpected monetary bonuses and put them toward the balance of your home loan. You can use lottery winnings, holiday bonuses, gifts of cash, inheritances, and tax refunds to decrease the amount of money you still owe on your mortgage.

Refinance Your Home Loan

Not everyone can save money by refinancing a mortgage. Evaluate the cost to do so and weigh it against potential savings on the debt. If you can save more money than you spend, refinancing provides an excellent option when you are looking to save money on your mortgage. Ideally, you can select a shorter term that allows you to shave years off your home loan. Alternatively, your monthly payments decrease, allowing you to put more money toward the  balance of your loan

Paying off your mortgage early can save you thousands of dollars in interest fees. Not only does this strategy help free up cash for family vacations, college, and special events, but it also helps you to avoid paying a lot more for your home than it is worth. Before you begin, you should talk to your lender and find out whether or not any penalties exist for early loan repayment.

If no penalties exist, you can move forward with your plan to pay off your mortgage early. Simply take the time to figure out which strategies are going to be the easiest to incorporate into your life and start paying down your mortgage now. Not only do you lower the balance on the payoff number, but you also lower the total amount of interest paid on your home loan.