[caption id="attachment_12033" align="alignright" width="331"]iStockphoto iStockphoto[/caption]

With a lot of discipline and determination, you can stay on top of your debts. Some decisions you make when buying a home can substantially reduce your interest fees.

Here are some things that could have a big impact on how much money is left in your pocket.

  1. Make the largest down payment you can

This will reduce the amount of your mortgage and the length of time it takes you to repay it. To help you increase your down payment, you can use the Home Buyers’ Plan. To avoid paying interest needlessly, consider buying a smaller home and paying it off in a period of 17 years.[……]

Read more

AD

Start preparing a safety net for unexpected expenses.

Life happens.

Your washing machine breaks. You have a leaky roof. You lose your job. Your child gets sick.

No matter how well you plan, you simply can’t predict if and when unexpected expenses are going to arise — and inevitably they will. Your pay cheque may only go so far towards covering costs, and you’ll want to avoid going into debt or dipping into your retirement or long-term savings.

So what can you do to prepare?

Start saving now.
Open a separate savings account for emergencies, and get into the habit of depositing a weekly or monthly amount, even if it’s just $10 or $15. That may mean one less meal out, but it will add up over time. A great way to get started is to set up automatic savings. Once you’re in the habit of automatically setting money aside each month and adjusting your spending habits, you can gradually increase the amount.[……]

Read more

Are you a first-time buyer hoping to find your dream home? Stop and take a look at the common mistakes of first-time buyers so that you don’t get trapped.

Not thinking long term

Your family will grow and your needs will change. Clearly determine your needs by thinking long term. Moving is expensive, so ideally you should avoid moving too often.

Not budgeting for all home ownership costs

When you purchase your first home, you need a comprehensive budget that takes into account all the costs associated with this major transaction. You should make provisions for inspection and notary fees, moving expenses, home improvements (painting, decorating, accessories, etc.), furniture, equipment, transfer costs, municipal and school taxes, insurance, maintenance, etc.

[caption id="attachment_11746" align="aligncenter" width="580"]iStockphoto iStockphoto[/caption]

Getting caught up in looks

All too often, first-time buyers are swept away by the cosmetics of a property. Staging a home can definitely make it more appealing. It enhances the overall look and feel of the property and makes a fantastic first impression on visitors. However, don’t be distracted by furniture and décor. You need to objectively assess a property’s potential; otherwise you could miss out on a great opportunity.[……]

Read more

You’ve been thinking about it for a few years, but you wanted to make sure you were well prepared before making such a major investment. If you’re ready to become a homeowner, you have several options. For first-time home buyers or those who have gone more than five years without owning a home,[1] one option is the Home Buyers’ Plan (HBP).

What is the Home Buyers’ Plan (HBP)?

The Home Buyers’ Plan (HBP) is an attractive solution for assembling a down payment. This federal government program lets you withdraw money from your registered retirement savings plans (RRSPs) for the sole purpose of buying or building a home for yourself or for a relative with a disability, whether they are your spouse, child, or other member of your family. The program allows you to withdraw up to $25,000.

[caption id="attachment_11553" align="aligncenter" width="580"]iStockphoto iStockphoto[/caption]

What happens next? [……]

Read more

A growing number of Canadians are buying a second a home. Given the current state of affairs at the global level, many people who live in the city are dreaming of getting away from it all in a more peaceful setting, while others who live far from the lights of the big city are looking for a place closer to the action.

Even though a second home is often referred to simply as a vacation property, the decision to buy should never be taken lightly because there are some major factors to consider.

[caption id="attachment_11298" align="aligncenter" width="849"]iStockphoto iStockphoto[/caption]

Downpayment is only the beginning

Buying a property means that your borrowing capacity will have to be evaluated and you will need to draw up a detailed budget. There are a number of other factors to take into account when buying a second home. After all, you’ll probably be spending less time in your second home than in your primary residence but you’ll still be faced with the maintenance costs and other expenses associated with home ownership. For example, you have to cover taxes, insurance, heating, electricity, water as well as possible renovations, seasonal upkeep and transportation. All of those expenses are in addition to what you’re already spending on your primary residence!

As you can see, before you start looking for the ideal location or the property of your dreams, you should take a close look at your budget to see whether you can afford all the costs that will be involved in owning a second home.

Here are some important budget items to think about:[……]

Read more

There are some projects, such as buying a house, that cannot be turned into reality over night. In addition to having to consider a number of factors, you must also be able to save sufficiently, all the while ensuring that the financial repercussions do not affect your lifestyle.

Whether you’re dreaming of a trip around the world, purchasing a new car, retiring under the sun, or acquiring a second home, your project must begin with a plan!

Advice… from the comfort of your home

Financially, it’s always wiser to save sufficiently to avoid having to rely on financing to accomplish your life projects. However, there’s no denying that in some instances, such as buying a home, it is quite difficult – and often, impossible – to save all that you need to pay it all in cash.

This however doesn’t mean that saving is futile. By saving as much as possible, you thereby minimize both your future monthly payments and the interest that accumulates on your loan. In turn, this will free up some considerable room in your budget.

But how and how much should you save? [……]

Read more

Buying a home is a major purchase that most people pay off over a long period of time. However, certain easily accessible choices can help you save on interest and speed up your mortgage repayment. Here are five tricks to pay off your National Bank mortgage more quickly.

[caption id="attachment_11111" align="aligncenter" width="580"]iStockphoto iStockphoto[/caption]
  1. Increase the frequency of your payments

This option is often considered the easiest option to incorporate into a budget. Simply increase your payment frequency from monthly to weekly or biweekly. And why not time your mortgage payments to coincide with when your salary is deposited? [……]

Read more