Mortgage Market Updates and News
What to do, what to see? In Port Alberni, BC
Small steps towards mortgage freedom
Posted on May 7, 2013 in Mortgage Market Updates and News
Good news! You can baby step your way to mortgage freedom and save thousands of dollars in interest in the process. According to Scotiabank's Mortgage Landscape Study, almost two-thirds of mortgage holders agree they could pay off their mortgage faster without impacting their lifestyle. How much does it take -- only an extra $20 a month.
While many homeowners think in terms of lump-sum payments, which are a great option, there are other ways to save money and pay down that debt. Seventy-nine per cent of mortgage holders have taken at least one of these steps:
1. Refinancing for a lower interest rate
2. Renegotiating for a lower interest rate
3. Switching to bi-weekly payments
4. Increasing amount of regular payments
5. Lump-sum payments
Increasing your payment by just $20 a month will have a positive impact because the extra money is applied directly against the mortgage principal. This decreases the amount of interest you will pay over the life of the loan. For example, the average borrower would save almost $2,800 in interest over 25 years and reduce the amortization by 10 months. Imagine if you added $40 or $60 a month.
Interestingly, the poll also showed that 21% of mortgage holders have not taken any steps to pay down their mortgage for the following reasons:
1. Don't have available funds
2. Have other payment priorities
3. Don't know what steps to take
The poll also revealed that 51% of mortgagors have spoken to their mortgage professional about how they can become mortgage-free faster.
It's easy to forget about your mortgage when you're making automatic payments. It's a good idea to keep up-to-date on mortgage options and interest rates .You could potentially save a ton of money by understanding those options.
The freedom that being completely debt-free brings is a dream for many Canadians. If you're unsure of what your next step should be, it's advisable to contact your mortgage professional. Together we can review your mortgage, look at your financial picture and devise a mortgage-reduction plan that works for you.
Reaching Out to Newcomers
You've made Canada your new home and are probably in the process of searching for a place of your own. Looking for a home can be a very exciting experience that can be both rewarding and challenging.
As Canada's national housing agency, Canada Mortgage and Housing Corporation (CMHC) has been providing Canadians - including new Canadians like you - with information and tools to help you make informed homeownership decisions.
To help new Canadians make informed housing-related decisions and find safe, affordable homes for their families, Canada Mortgage and Housing Corporation has developed a multi-language one-stop online source for housing-related information. Visit CMHC at www.cmhc.ca/newcomers to access a series of guides and tools that take you through the home buying process.
CMHC wants to provide newcomers to Canada with relevant and simple housing-related information. A wealth of information on renting and buying a home is available for newcomers in both official languages - English and French - as well as in Mandarin/Simplified Chinese, Arabic, Punjabi, Spanish, Tagalog and Urdu.
The "Housing for Newcomers" site features information on home buying, including such topics as:
What to Look For When Buying a Home
How Much Home Can You Afford?
Choosing the Right Mortgage For You
Making an Offer and Closing the Deal
Location, Location, Location: Finding a Home of Your Own
Furthermore, the following information to help guide you with your mortgage planning is available in 8 languages:
Mortgage Fraud will teach you how to protect yourself from becoming a victim of mortgage fraud when purchasing or refinancing a home
Mortgage Planning Tips will give you tips to help you save money and provide for greater economic stability in the event of financial challenges down the road and
Your Credit Report will give you some simple steps you can take to maintain a good credit score and history and improve your chances of being approved for a mortgage.
The site also features information on renting an apartment - for most newcomers, your first home will likely be a rented house or apartment. Renting a home should provide you with a safe place where you can begin to adjust to your new life in Canada. It can also give you the time to look for a home to buy without feeling pressured into making a quick decision. Topics include
Understanding "For Rent" Ads
Checking Out a Home or Apartment
Signing a Lease
Keeping Your Home in Good Condition
How to Find and Rent a Home if You Have a Large Family
Paying the Rent: What's Included - and What's Not.
A series of interactive videos have also been produced as well as translated and featured in subtitles in all the other languages to provide you with information on home buying mortgage literacy and home renovation. These consumer friendly videos offer tangible information to help with decision making.
For more information or for FREE information on other aspects of renting and buying a home in Canada, visit www.cmhc.ca/newcomers. For 65 years, Canada Mortgage and Housing Corporation has been Canada's national housing agency and a source of objective, reliable housing expertise.
Sharie Marie Francoeur - TMG The Mortgage Group Canda Inc