Blog

Is It A Good Time To Consider Buying Your First Home?

By Debt.ca on June 29, 2014 No Comments

You’ve been house hunting for months when you suddenly come across your dream home: a three-bedroom bungalow with a garage and a walkout patio. If you’ve only managed to scrape together the minimum five per cent down payment, you may be wondering if you should purchase now or wait until later. Purchasing a home will be the single largest financial transaction of your lifetime, so it’s important to make the decision carefully. Here are some things to consider before making an offer.

High-Interest Debt

If you have high-interest debt you might think twice about purchasing a house. If you’re carrying a balance on your credit card, you should concentrate on paying it off before you consider homeownership. When you’re a homeowner you won’t have a choice when it comes to paying your mortgage – if you don’t pay your mortgage the bank will foreclose on your home, so it should be your top priority.

Low Mortgage Rates

Mortgage rates are currently at historic lows. Right now you can get a 5-year fixed rate mortgage at less than three per cent and a variable rate mortgage even lower – at 2.6 per cent or lower. This makes it a great time to take out a mortgage.

It is a good idea to take advantage of low mortgage rates and pay down your mortgage as quickly as possible. Interest rates won’t be low forever – chances are they’ll be a lot higher when you renew your mortgage. Often there’s no better investment than your home.

Seller’s Market

Many mortgage markets across Canada are considered seller’s market – that means sellers are able to call the shots. In red-hot housing markets like Toronto and Vancouver, bidding wars are commonplace. If you’re going to have to pay an arm and a leg for your dream home, you might think twice about buying now. On the other hand, if home prices keep rising you could find yourself priced out of the market next year. If you’re willing to purchase in an up-and-coming neighbourhood you can avoid a bidding war and get your dream home today.

Stricter Mortgage Rules

Although mortgage rates may be low, it’s more difficult than ever to qualify for a mortgage. The federal government introduced in recent years four sets of stricter mortgage rules designed to avoid a major housing correction. One of the biggest chances is that the maximum mortgage amortization has been trimmed from 40 years to only 25 years on high-ratio mortgages – that means the carrying costs of a home have significantly increased. Before buying, it’s a good idea to draw up a budget ahead of time to see if you can still afford a home with the highly monthly mortgage payments.

A Home is a Good Long-Term Investment

Over the long haul a home is a good long-term investment. Not only is it a roof over your head, you can rent it out to increase your income and pay down your mortgage even sooner. By paying down your mortgage you’ll build up equity in your home and help boost your net worth.

Debt.ca

Admin


Tackle holiday debt now

By Rubina Ahmed-Haq on January 13, 2017

The holidays are expensive. We know that. According to a recent survey from savings destination RetailMeNot.ca, the average Canadian spent almost $1000 this past holiday season on food, drink, travel and gifts. Another survey by PC Financial finds 77 per cent agree the holiday season tends to be more expensive than planned. If you went over…

4 Money Moves You Can Do To Start The Year Off Right

By Andrew Daniels on January 2, 2017

With 2016 in the review mirror, it’s time to turn our attention to the amazing year ahead, and see what 2017 has to offer. With all of the possibilities and opportunities it’s hard to know where to begin. To make the most of your money this year, make sure to get these money items off your checklist…

How to Set New Year’s Financial Goals and Actually Stick to Them

By Jordann Brown on December 27, 2016

As the New Year approaches many Canadians will begin planning their resolutions, and many of those resolutions will be financial in nature. Money-based resolutions are the third most popular type, yet only 19% of Canadians keep their resolutions for the entire year. That’s because setting a goal is one thing, but sticking to it is…

Things You Should Always Buy at a Dollar Store

By Amanda Reaume on December 15, 2016

Dollar stores are great places for thrifty shoppers, but anyone who has ever used a dollar store cotton swab knows that there are just some things that you shouldn’t buy there. So, what should you be buying at a dollar store? As someone who has saved hundreds, if not thousands of dollars by shopping at dollar stores over…

No Comments Leave a Comment  

Leave a Comment

Free Savings Estimate

How much do you owe?

$100,000

$5,000
$100,000
Live Chat
Welcome to our Live Chat
Agents are not available at this time. Please leave a message. Thank you.
First Name
Last Name
Phone
Email
Postal Code
Debt Amount
 
PHP Live! powered