Cut Through the Noise
Hardly a day passes without some sort of headline or other, predicting doom and economic gloom, and many average consumers are beginning to panic. What we do know is that there is great economic turbulence beyond our borders, and that, as a result, the Canadian economy will likely experience a slow down in the coming months.
In short, there is much economic food for thought, and thinking things through before taking on debt is a good thing- but there is no need to panic, or endure sleepless nights, based on media reports.
Renovate for More Equity
With reports that Canadian household debt levels are still hovering around 150%, one might think that taking on more debt is unadvisable. Not necessarily. In this kind of environment, when interest rates are exceedingly low, and home prices are expected to continue to climb moderately through 2012, renovating your house can result in huge returns.
Now is an excellent time for homeowners to work on building more equity in their homes through renovations or eco retrofit programs, taking advantage of low rates and government rebates.
Consolidate
While interest rates remain low, they will not remain so forever. What this continued environment does do, is provide homeowners with opportunities to get your financial houses in order, so to speak, before rates do rise.
For clients with outstanding consumer debt, 2012 may be the year to slim down financially, and streamline debts to make managing debt more reasonable, and more responsible.
Stress Test
In the calm before a possible storm, it makes sense to "stress test” your existing mortgages, to make sure that you could withstand a change to household income, in the event of job loss or something else. It is never a bad idea to be proactive, play what-if, and have a plan in place to navigate any bumps in the road.
Fixed vs. Variable Debate
For many of you, your home is your largest asset. You may want to consider locking the debt leveraged on your home into a fixed rate, simply as a way of mitigating risk in your their overall investment portfolio.
If you have any concerns or questions you would like to discuss, please feel free to call me anytime at (306.251.0804) or view my website at www.canadamortgageteacher.com for my daily rates. Keep warm! Karen
Globe and Mail:
- Carney holds rates steady even as his concerns increase Read more
- Buy now to get an unheard of rate for a 10 year mortgage Read more
- Do you know your debt to income ratio? Read more
