With anticipated interest rate increases on the horizon, many homeowners are wondering whether to lock debt such as mortgages and secured lines of credit into a fixed-rate mortgage or stay variable. 

 Even some who are mortgage free are concerned with how rate increases will impact secured lines of credit, the financing of vacation homes and recreational property.

 First-time buyers may be particularly concerned with entering an expensive real estate market. As a first-time homebuyer, it’s essential to figure out what you can afford. A quick rule of thumb is that your household expenses should not add up to more than 40% of your pre-tax household income. Household expenses include mortgage payments, property taxes, condo fees, utility and heating costs, and any payments on other loans such as car loans, credit card debt and lines of credit.

 Probably the first step should be to get a copy of your credit history from Equifax Canada and TransUnion. As this is what lenders will look at, it’s important to review its accuracy.

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