In today’s uncertain economy, making financial decisions can be a daunting task. Have you ever found yourself or a loved one contemplating the idea of selling your home and reverting to renting? It’s a question that’s been on many Canadians’ minds lately. In this article, we’ll explore various options and strategies to help you stay in your home despite the challenges posed by rising mortgage rates and a limited housing supply.
Understanding the Landscape:
The current real estate market in Canada presents some unique challenges. Mortgage delinquencies are stable, and home prices continue to soar due to an influx of newcomers and a constrained housing supply. Families, however, are facing difficulties finding rental properties, making renting not a viable option for everyone. Moreover, interest rates are expected to rise further, with at least one more hike in the near future. Additionally, 1/4 of mortgage renewals are scheduled in the next 2 years, making it a critical time for homeowners to evaluate their strategies.
Exploring Your Options:
Here are some strategies we can help you with to navigate these challenging times:
Switching to Lenders with Longer Amortizations: Consider switching to lenders offering longer amortization periods, which can help reduce your monthly mortgage payments and ease financial strain.
Debt Consolidation: Consolidate debts outside your mortgage to potentially save hundreds or even thousands of dollars in interest.
Modification of Payment Strategies: Instead of accelerated payments, opt for reduced minimum payments, instantly improving your cash flow by up to 8 percent.
Equity Loans: Explore the option of obtaining an equity loan to create a financial buffer for your family.
Reverse Mortgages for Those Over 55: If you’re 55 or older, consider a reverse mortgage as a source of income.
Multigenerational Family Planning: Plan for lump sum contributions from family members as early inheritances to help pay down your mortgage.
Relocating Within BC or to AB, Winnipeg, or Sask: If your employment allows, consider moving to areas with more affordable housing options.
Budget Adjustments:
Many clients are taking proactive steps to realign their finances:
Reducing Car Expenses: Some are downsizing to one-car households or opting for less expensive vehicles.
Income from Renting: Taking in students or renting out parking/storage spaces can provide extra income.
Turning Passion into Profit: Transforming hobbies or passion projects into income-generating activities.
Adjusting Spending Habits: Reviewing and cutting back on unnecessary expenses.
Conclusion:
Navigating the complex world of mortgages and homeownership in today’s economic climate requires careful planning and expert advice. If you’re seeking personalized mortgage advice for you and your family, don’t hesitate to reach out to us directly at 604-802-3983 or via email at angela@countoncalla.ca.
[Link to Video and Full Article: https://globalnews.ca/news/10000476/mortgage-rates-rising-bc-selling-versus-renting/] Navigating the Rising Mortgage Rates: Selling vs. Renting
Angela Calla is an 19-year award-winning woman of influence which sets her apart from the rest. Alongside her team, Angela passionately assists mortgage holders in acquiring the best possible mortgage. Through her presence on “The Mortgage Show” and through her best-selling book “The Mortgage Code“, Angela educates prospective home buyers by providing vital information on mortgages. In light of this, her success awarded her with the 2020Business Leader of the Year Award.
Angela is a frequent go-to source for media and publishers across the country. For media interviews, speaking inquiries, or personal mortgage assistance, please contact Angela at hello@countoncalla.ca or at 604-802-3983.
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