The new year is a great time to take a good long look at your financial situation and develop some realistic, attainable goals. A little planning can make a huge difference. 2014 is expected to bring some rule tightening designed to reduce risk for mortgage providers, insurers, and the government. While that means some consumers may have a more difficult time getting approved, smart buyers will seek out the options provided by a mortgage broker in Calgary who can help them find the right loan for their future.
If you currently own a home but feel like you didn’t get the best possible rate or terms, Mortgages by Candice assist you with refinancing options. Or, if purchasing a home has always seemed out of reach, she can help you create a plan to get your finances in order and turn that dream into reality. Here we offer ten top borrowing tips to help you get 2014 off to a great start!
- Review your spending. If cash flow is a problem, saving for a down payment will be even more challenging. Examine your monthly bank and credit card statements and categorize your spending. When you see where your money is going, you might be surprised. You will also likely be able to find a few places you could cut back to set aside some savings to put toward your down payment.
- Improve your credit habits. Try to keep your accounts below 30 per cent of your limit. Resist the urge to sign up for individual retailer credit cards. Their rates are usually extremely high, and every application shows up as an inquiry on your record. Too many inquiries can have a negative impact on your credit score.
- Set priorities for paying off debt. Look at your credit cards’ interest rates and work to pay down the ones with the highest rate first.
- Pay your bills on time. It sounds like common sense, but this is one of the most important habits to develop. Lenders will look more favourably on an applicant who has a history of paying on time.
- Consider debt consolidation. If you have high-interest credit debt that you won’t be able to pay off in the near future, and you already have a mortgage, consolidating the two could be a smart way to save. With Canadian personal debt levels at an all-time high, a debt consolidation loan is just one of many services your mortgage broker Calgary offers to help you get your financial house in order.
- Alternative mortgage options are better than ever. Research the different types of loans available. To learn more about the home-buying process, read 10 Steps to Becoming a Homeowner. Savvy home buyers use their mortgages to help them meet their financial goals. If you only plan to be in a home for less than ten years, a lower adjustable rate mortgage might make more sense than a traditional fixed-rate.
- Lock into an interest rate. It’s in your best interest to lock in as soon as possible if you are offered an attractive rate. Your mortgage broker Calgary can help you find the lowest possible rate and advise you when you should lock in.
- Refinance while rates are low. If you resisted the urge to refinance last year, and think there is a chance doing so could save you money, now is the time to discuss your financial goals with a broker and find out for sure.
- Renovate — even before you move in! Smart renovations add value to your home. Refinancing can make an updated kitchen or new master bath possible. If you’re buying a home that needs work, a purchase plus improvements loan is a great way to turn a fixer-upper into your dream home…now!
- Pay down your mortgage. Did you get a raise? A bonus? Expecting a large tax refund? When you find yourself with extra cash, put it toward your mortgage principal. If possible, switch to bi-weekly payments and reduce your principal even faster.
There will never be a better time to get your financial future on track. If home ownership feels like a distant dream, a mortgage broker in Calgary like Candice Light can help you make it happen sooner than you ever thought possible. And if you already own a home, maybe it’s time to review your mortgage. Life brings us constant change, why should you settle for what was best last year—or five years ago. Contact Mortgages by Candice today to learn more about how bright your future can be.