Do you have the financial freedom to retire 5 to 10 years early? If you are like most Canadians, the possibility of retiring early seems like an impossible dream. Many feel trapped in a financial prison, trying to keep their heads above water with credit card or loan payments. In fact, over the last decade the average household debt in Canada has increased by 80 per cent, with most of us spending 15 per cent of our pay each month to service that debt. But with every new year comes new optimism and hope. Reflecting on the past and looking towards 2014, are you doing everything you can to improve your financial future?
Even if you are not the type to make a New Year’s resolution, if getting on the road to financial independence is one of your goals, a Calgary mortgage broker can help provide the expert guidance you need to get back on track. While saving money (and spending less) usually ranks at the top of the resolution list, there are other ways to improve your financial situation with the help of those at Mortgages by Candice.
With rising mortgage and credit card interest rates, many hard working Canadians with good paying jobs still find themselves with no money at the end of the month. You’ve probably seen TV ads urging you to refinance, but how can that be a good idea? Actually, the interest savings on your mortgage alone could save you in the ballpark of $4,000 per month. By consolidating your debt into your refinancing deal, it could save you even more in credit card interest. The truth is, you probably have more equity in your home than you think, but it is often left to the consumer to figure it out for themselves. By working with your Calgary mortgage broker, you can choose from literally dozens of mortgage plans, custom tailored to fit your needs.
In today’s economy, many people have blemishes on their credit histories and are reluctant to apply for refinancing. A common misconception is that bad credit marks stay on your record for seven years. While that is technically true, there are a lot of good loan programs out there that will consider only your most recent 12 months of credit history. There are also plans for people who have filed for bankruptcy in the past – or even more recently. The good news is, if you are employed or self-employed, your Calgary mortgage broker will work to present you with a refinancing plan that you can qualify for, regardless of your past or present credit problems. You do not need to be trapped in a financial prison because of credit problems.
If you recently bought your home or refinanced, you may be thinking it’s too soon to refinance again, and you might be right. But there are a lot of cases when it makes sense to refinance a “young” mortgage and put that money in your pocket. Your Calgary mortgage broker can analyze your specific situation and determine whether it is the right time for you to finance, or if you should leave your mortgage the way it is.
Home Equity Loans
Thinking about risking your home in exchange for a loan makes many people nervous. However, you also need to look at the risk of not taking out a loan. What would happen if you lost your job, or were sick and unable to work? The bigger your total monthly payments are for credit cards, loans, and other payments, the more at risk you are for losing everything you have worked so hard to build. Just about any creditor can put a lien on your home if they can prove they are not being paid. The smart thing to do is to minimize your risk by lowering your debt and monthly payments. Taking out a home equity loan can help you do both, while allowing you to get out of debt faster and putting extra money in your pocket to help you build up your emergency reserves.
If you are ready to start on the path to financial freedom, Mortgages by Candice can help your change your circumstances for the better, right now. Contact us to inquire about a service, and find out how to make 2014 the best year yet.