Luciano Giustini
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Why buying your first home during inflationary times is good
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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.
Posted in It's a dream to be able to pay off your mortgage early, but is there a downside? While it sounds like a great idea, there are some factors to consider before doing so. This article will explore some of the reasons you may want to hold off on that final payoff amount.
Other Debts
If you have various other debts (credit cards, auto loans, etc.) it's a good idea to pay those off before the mortgage. Why? Well, credit cards usually have astronomical interest rates so that outstanding balance will only grow if you choose to put all your money towards your mortgage.
That extra interest on your credit card or auto loan isn't tax deductible, which leads to the next point.
Check for Penalties
Some mortgages come with a prepayment penalty. If you're thinking about paying yours off early, then check the fine print to see if it applies, and also run the numbers to see if early payoff makes sense.
Fund Your Retirement Plan
Before you go paying the mortgage off, consider funding your retirement plan. If you don't have one already, it may be a good idea to set one up as they are tax advantageous.
Once you get a good handle on your retirement plan, paying off the mortgage might be next on your list. A good-sized nest egg and a home that's mortgage-free sounds like a great way to start off retirement.
Consider the Side Effects
When deciding to pay off the mortgage, there seems like no downside but there are various things to consider. Will making additional payments put a strain on your savings? How about your emergency fund?
It's essential to consider your overall financial health when making such a big decision. Although being mortgage-free would be a fabulous feeling, you don't want to do it at the detriment of your cash flow.
Pull the Trigger
After reviewing all your financial information and deciding what's best for your situation, be confident in your decision and follow through. It's a great feeling to be mortgage-free or on your way there. The bottom line is that you need to do what makes you comfortable for your family.