Do you ever think about things you can do now to help protect yourself against the inability to pay your mortgage in case of financial issues in the future? The CMHC (Canada Mortgage and Housing Corporation) has posted an article on their website entitled “Mortgage Planning Tips” giving some great information about how you can be proactive now to possibly prevent damaging financial hardship in the future.
It is always wise not to borrow the maximum amount you have been approved for when it comes to a mortgage. Borrowing the maximum amount you can afford now may not allow you to comfortably cope with unexpected changes in your income or unforeseen expenses in the future.
It is a great idea to sit down with your financial lender to calculate how your monthly mortgage payment would change if the interest rates were to increase (even 1 - 2%) - Could you still comfortably pay your monthly mortgage if this increase should occur? – a very good question to ask yourself BEFORE “signing on the dotted line”.
There are ways to pay off your mortgage sooner in order to have more financial freedom in the future – this could include making weekly or biweekly payments, saving to make a lump sum payment toward the principle and/or increasing your payment a little bit every month. Talk with your financial lender about the options they offer to pay off your mortgage faster.
If you reach a point that you are unable to make your monthly mortgage payments, speak with you lender – they may be able to help you as they may offer ways to help you deal with temporary financial obstacles – Remember, the worst thing you can do is sit back and not do anything and just hope the problem will go away!
For more information regarding these Mortgage Planning Tips please click here to read the complete article from the CMHC.
Until next time,
The Jamie Dann Team
Showing posts with label financial planning. Show all posts
Showing posts with label financial planning. Show all posts
Wednesday, August 1, 2012
Friday, June 1, 2012
Using RRSP's To Fund Down Payments...
Hi All:
The Canadian real estate market is in the midst of a busy year. For first time buyers, the biggest challenge is often how to come up with the down payment. While it's possible to buy a home with as little as 5% down, the ideal recommendation is to put at least 20% of the purchase price toward the down payment. How can you come up with these funds?
When helping client's solidify a savings plan, financial planners often advise, "Pay yourself first." When it comes to buying a home, first time home buyers may want to consider the suggestion, "Borrow from yourself first." This can be achieved through the application of your Registered Retirement Savings Plan (RRSP) toward the down payment of a property.
Canadians who have never owned a home, or who haven't owned their primary residence for at least the past five years, may qualify to withdraw up to $25,000 (tax free) from their RRSP to put towards a home through the government's Home Buyer's Plan. Home buyers withdrawing funds from their RRSP under this plan do not have to pay income tax on the amount withdrawn as long as the funds start being repaid into an RRSP two years after withdrawing the funds, are repaid at a minimum of 1/15 per year, and are completely repaid within 15 years.
If you would like a copy of the Home Buyer's plan, please email us at admin@jamiedann.com
Lastly, our inventory is low and houses are selling fast. If you, or anyone you care about is thinking of making a move, please contact us and we will be happy to discuss how to make that happen.
Until next time!
The Jamie Dann Team
The Canadian real estate market is in the midst of a busy year. For first time buyers, the biggest challenge is often how to come up with the down payment. While it's possible to buy a home with as little as 5% down, the ideal recommendation is to put at least 20% of the purchase price toward the down payment. How can you come up with these funds?
When helping client's solidify a savings plan, financial planners often advise, "Pay yourself first." When it comes to buying a home, first time home buyers may want to consider the suggestion, "Borrow from yourself first." This can be achieved through the application of your Registered Retirement Savings Plan (RRSP) toward the down payment of a property.
Canadians who have never owned a home, or who haven't owned their primary residence for at least the past five years, may qualify to withdraw up to $25,000 (tax free) from their RRSP to put towards a home through the government's Home Buyer's Plan. Home buyers withdrawing funds from their RRSP under this plan do not have to pay income tax on the amount withdrawn as long as the funds start being repaid into an RRSP two years after withdrawing the funds, are repaid at a minimum of 1/15 per year, and are completely repaid within 15 years.
If you would like a copy of the Home Buyer's plan, please email us at admin@jamiedann.com
Lastly, our inventory is low and houses are selling fast. If you, or anyone you care about is thinking of making a move, please contact us and we will be happy to discuss how to make that happen.
Until next time!
The Jamie Dann Team
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