30 Sep

A Smart Approach to Down Payments

Mortgage Tips

Posted by: Brent Adair

A down payment is the amount you pay upfront to obtain a mortgage. The minimum down payment in Canada is 5%. Using a list price of $250,000, the minimum amount of money you would have to put down is $12,500. Not everyone has this much money laying around in a bank account, however just because you don’t have this much in your bank account doesn’t mean that it is impossible. So here are some smart ways to help save money for your down payment:

 

If You Don’t Need It, Don’t Buy It

There is a difference between needing something and wanting something. Here are some questions to ask yourself the next time you are ready to check out with your purchase.  1. Do I need this or want this? Because there is a difference 2. Can I live without this? 3. Can I wait and get this later? 4. Can I get this cheaper somewhere else? Maybe second hand? 5. Can this item be borrowed from someone else? When it comes down to it, stick to the necessities.

 

“Google It”

When it comes to saving money, Google can help! Using Google, you can research money saving ideas, there are plenty of money saving ideas on the internet, so have a look through them and choose the ones that work best for you.

 

Eliminate the Small Costs

All the small things add up. Cutting down all the small things will help to make a huge difference in your bank account. Think about the $2 coffee that you buy on your way to work each workday. This adds up to $10/week and $520/year. When you start to look at the big picture, it helps to put things into perspective.

 

Write Your Spending Down

By writing your spending down, you’ll be able to monitor your spending and track where your money is going. This helps you with your planning and help with possibly changing your spending habits.

 

Try Fixing It Yourself

With all the information that is available, you can use this to your advantage. If there are some minor projects that you need help to fix, you can use YouTube or Pinterest to help you fix or replace items rather than hiring a repair person.

30 Sep

Four Ways You Can Still Be a First Time Home Owner

Mortgage Tips

Posted by: Brent Adair

When it comes to purchasing a home, there are still ways to figure it out, without it damaging your finances. It’s unfortunate that salaries are not keeping up with inflation, and many more people today are working as freelancers or contractors; something traditional lenders are not fond of. So when it comes to looking to purchase your home, here are four helpful tips!

Clean Up Your Debt

What this means is to choose to use our credit cards a little more wisely, as our credit cards do have high interest rates and if you let it accumulate it may take a while to finally clear your debt. Be smart when it comes to using your credit card, word to the wise try to pay off as much as you can each month. There’s nothing wrong with purchasing fancy stuff you like if you can afford them; but it won’t help you saving up for the home you wish. You should also understand the effect of the financial decisions we make, whether they are a mistake or clever purchases.

Move away from big cities

Buying a home or property in a country could be beneficial to you, while you aren’t as close as you would be to a lot of things like in the big city, the homes are cheaper. If you do plan on looking into smaller communities, also investigate their public transportation and see how easy it is to access, so you are not constantly relying on your car to get around.

Help from Parents

We can always tap into our RRSPs to help with a down payment, but we must pay it back. But if you don’t have that option, you can always rely on your parents. They can lend you the money from their own RRSPs. It’s safe, can securely earn them interest, and will help you out in the process. This is a non-conventional way about getting money, this is not a family member “gifting” ‘you the cash to help with your down payment. The loan is truly a gift, and not repaid with interest.

Rent Out Part of the Property

If you are looking at homes that may be just a little out of your price range, you can also rent out a room, while keeping some privacy. The money you receive in rent can help pay off your mortgage by going straight into your mortgage payments! It is important that you make sure all your activities are legal in your municipalities.