Tuesday, January 31, 2017

Buyers Were Asking: Future Proof Your Mortgage Debt

Future Proof Your Mortgage Debt

This has been a rough market so far for all buyers with our current lack of inventory and low interest rates, both proving to be fuel for bidding wars.  And, although we have been warned to keep spending in check in the event of a huge reality check if these historically low interest rates go up, it's still not easy with the lack of inventory fuelling the fire. 

Low rates are fantastic way to buy your last house sooner, but, be aware of the potential pitfalls of overextending yourself.  A suggestion to employ is to 'future proof' your mortgage by paying the amount equivalent to a higher fixed rate interest.  Once you are used to paying that little bit more, you'll not only be safe guarding yourself against an increase, but, you'll be putting more toward the debt load you're carrying.  

It goes without saying to keep your credit cards in line, but, we still run into buyers who are challenged financially by our newly adopted 'instant gratification' lifestyle.  Canadians are becoming much more comfortable with the idea of carrying more debt, which is fine, as long as you're preparing yourself for the rate increase.

Looking for a professional to help ensure you're financially ready for your purchase?  We've got some you covered, see our recommendations, here!

If now is your time to buy, let's talk it through, please don't hesitate to contact us!

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