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Each Office Independently Owned & Operated
Posted by: Ryan Roth
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Posted by: Ryan Roth
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Posted by: Ryan Roth
With the recent inflation and rising prices occurring across the country, it is time to take control of your finances. One of the quickest ways to understand where your money is going and where you can make changes, is to create a monthly budget. This will help you get a snapshot of your income compared to your spending, and provides an avenue to review all of your outgoing costs and helps you make changes to increase your monthly cashflow – or just feel less stressed!
Step 1: Calculate Your Income
The very first step to creating any budget is determining your income – knowing exactly how much money you bring in is important to understanding what you have available to spend. Remember to focus on NET INCOME versus gross salary, as budgeting for more than you can afford will lead to overspending.
Step 2: Track Your Spending
Once you have determined your income, you will want to take a look at your spending. Reviewing and categorizing all your monthly bills can help you breakdown exactly where your money goes and make some priorities to mark where changes can be made. To start, first list out your fixed expenses – these are things like car payments, loans, rent or mortgage costs that do not change on a monthly basis. Next, you will want to take a look at your variable expenses – things like groceries, gas, entertainment, etc. and determine your average spend. This is typically the area where people are able to cut back.
Step 3: Set Realistic Goals
Realistic goals are vital for long-lasting financial health. It is important to determine what you cannot live without and where you can cut costs or scale back on spending. Ideally, when it comes to your monthly budget, you want to consider the 50/30/20 rule, which applies the following:
Step 4: Make a Plan
Once you have your goals set, you can now make a plan to tackle your financial position and ensure a healthy cashflow each month. For some, setting realistic spending limits for each category works well. For others, taking a look at the importance of their expenses and re-prioritizing can free up funds.
Step 5: Adjust Your Spending
Now that you have determined how much money you bring in per month and what you spend it on, you can take a look at adjusting your spending to ensure you remain on budget. Taking a realistic look at your wants is a great place to cut out frivolous spending beyond a reasonable amount. This is also a great time to review your fixed expenses. Perhaps you can save money by getting a better interest rate on your mortgage or changing the payment schedule for your loan. Be sure to connect with a me before making any changes to your mortgage!
Step 6: Stay on Track
Tracking your budget on a monthly basis is important to catch any changes in your spending habits. As well, it is a good idea to conduct an annual review and take into account any increase in expenses or wages that may require shifts in your overall plan.
The Government of Canada has an online budget planner tool available as well if you need further assistance! You can find it here.
Remember: A healthy budget is key to financial freedom and comfort.
Posted by: Ryan Roth
Refinancing your mortgage can be a smart financial move for many reasons, and as your trusted mortgage advisor, I’ve seen how much it can benefit homeowners!
Ideally, refinancing is done at the end of your mortgage term to avoid penalties, but the timing can vary depending on your goals. For some, it’s about unlocking the equity in their home to fund renovations or cover big expenses like college tuition. For others, it’s an opportunity to consolidate debt, lower their interest rate, or change up their mortgage product.
Let’s take a closer look at some of the ways refinancing your mortgage can help!
PLUS! Some latest changes by the Government of Canada will make it even easier for you when it comes to your renewal and refinancing options:
No matter your plans or situation, please don’t hesitate to reach out to go over all options.
Posted by: Ryan Roth
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Posted by: Ryan Roth
Are you dreaming of owning your own home but worried about the down payment? We’ve got great news!
If you live in the Region of Waterloo, there is an underutilized Down Payment Assistance Program offering funds to help you secure your dream home.
Main Highlights:
Must buying a home in Waterloo Region for $600,000 or less
Have a household income of up to $109,000
Be at least 18 years old and renting
Have resided in Waterloo Region for at least the last year
Interest free and forgivable after 20 years unless you sell the home or the loan goes into default
Ready to Get Started?
Simply give me a call or send an email for a more in-depth review to see if this program could be a fit for you.
Looking forward to helping you with your home purchase!
Posted by: Ryan Roth
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Posted by: Ryan Roth
Buying your first home is a significant milestone! While you’re thinking about your affordability and what type of home you want to own, we have some exciting updates around first-time homebuyer benefits:
New or Pre-Construction Homes: Did you know? First-time buyers looking to purchase a new build or pre-construction home are eligible for 30-year amortization. This mortgage commitment can allow you to have smaller monthly payments, versus a standard 25-year amortization.
Mortgage Default Insurance: The CMHC has recently made it so mortgage default insurance will cover up to $1.5 million homes (increased from $1 million), helping more Canadians qualify for insured mortgages.
The Home Buyers’ Plan (HBP): The Canadian government has a program known as the Home Buyers’ Plan (HBP), which is designed to allow first-time homeowners to withdraw up to $60,000 from RRSP to buy a home!
Purchasing with your spouse? You can access a total of $120,000 from your RRSP’s.
First Home Savings Account (FHSA): The First Home Savings Account (FHSA) is specifically designed to help first-time homebuyers save for their down payment without paying taxes on the interest earned on their savings. The maximum is $8,000 annually that you can add into this account to save, with a maximum of $40,000 lifetime contributions.
First-Time Buyer Exemption: First-time home buyers are eligible for an exemption, reducing the property transfer tax you pay. If the fair market value of the property is:
Land Transfer Tax Rebates: First-time buyers in Ontario, British Columbia, Prince Edward Island, and the City of Toronto are able to claim land transfer tax rebates.
Reach out to today to learn more!
Posted by: Ryan Roth
As we approach the end of 2024 and head into 2025, some significant changes are on the horizon for the Canadian mortgage market. Whether you’re a first-time homebuyer, a current homeowner, or considering refinancing, these updates may impact your decisions and financial plans.
Here’s a breakdown of the most important changes you need to know:
Regulators are adjusting the mortgage stress test. Starting November 21st, 2024, borrowers will not be forced to qualify at their actual rate plus 2% when transferring their current mortgage to a new lender. This change will give borrowers more flexibility to find the best mortgage at renewal vs being stuck at a potentially higher rate because they fail to qualify with a new lender.
The minimum down payment for homes priced above $1 million is also changing. From December 15th 2024, prospective buyers can now put down less than 20% for homes valued between $1 million and $1.5 million. The new minimum down payment will be 5% of the first $500,000 in purchase price and then 10% for the portion between $500,000 up to $1.5M.
Also beginning on December 15th, 2024, there will be an increase in the maximum amortization for all first-time homebuyers and all buyers of new builds (newly constructed homes) with less than 20% down payment from 25 years to 30 years. This will enhance borrowing power and lower payments giving buyers more options.
Ever considered adding a basement rental unit or a Garden/Laneway Suite? Starting on January 15th 2025, new rules are coming out to assist these types of projects. Increases to the maximum property value, the amount of the mortgage and best rates (insured) being some of the highlights of this program.
Navigating the ever-changing mortgage landscape can be challenging, but we’re committed to keeping you informed. Please feel free to contact me or schedule a consultation if you’re unsure if any of these changes may be applicable to you. We’re always happy to help!
Posted by: Ryan Roth
In honor of my dog Maeve’s fourth birthday today, I present the best home features for pets!
Creating a pet-friendly home involves considering the comfort, safety, and well-being of your furry friends. Here are some features to consider:
By incorporating these features into your home design, you can create a safe, comfortable, and enjoyable environment for both you and your pets. 😊