You cannot have a healthy financial future if your finances aren’t in order, regardless of whether you’re a prospective homeowner or a homeowner who has already paid down a mortgage.
In light of the upcoming tax and RRSP season, now is an excellent time to analyze your current financial plan and identify where you should make improvements.
A relatively small change could improve your credit score, allowing you to access better interest rates. But, on the other hand, it could involve something more significant, like refinancing your mortgage to eliminate your high-interest debt for good.
The importance of managing one’s finances has never been greater. According to the latest FP Canada Financial Stress Index, four out of 10 Canadians experience money issues.
The importance of managing one’s finances has never been greater. According to the latest FP Canada Financial Stress Index, four out of 10 Canadians experience money issues. FP Canada Financial Stress Index.
Nearly half of Canadians say they aren’t confident they can pay their family and living expenses in full this year, according to the MNP Consumer Debt Index.
Tips to Improve Your Financial Health
Have an Emergency Fund
- Prepare for unexpected expenses by having readily accessible funds on hand. If you set aside funds for an emergency, such as medical costs related to disability or an automobile or home repair, you won’t have to go into debt to cover these expenses.
Automate Your Savings
- Maintaining your debt is important, but you should also build up your savings, whether it’s for retirement or investing. Putting money aside is easier when you automate it. Set up a regular withdrawal from your account to be put directly into your RRSP or Tax Free Savings Account (TFSA), according to your pay period. A little contribution made regularly can have a big impact over time.
Know Your Credit Score
- Knowing exactly what is damaging your credit score will make it easier for you to improve it. Both TransUnion and Equifax Canada provide credit reports, which include the ability to monitor changes in your credit score, along with a summary of the contributing factors.
Prioritize Paying Off High-Interest Debt
- Interest rates charged by credit card companies can be as high as 29 percent, and this has a devastating impact on personal finances. It is important to pay off this debt quickly. Alternatively, it may be possible to roll the high-interest debt into your mortgage by refinancing if it is unmanageable.
Speak to a Professional to Understand Your Options
As mortgage professionals. We offer advice on mortgages. You can find valuable advice from financial advisors on finances that will help get you back on track to financial freedom.
It can be difficult to know where to begin the journey of improving your finances. Sometimes, however, solutions are not immediately apparent.
No one-size-fits-all solution applies to everyone’s financial and personal situations. Mortgage refinancing is no exception.
If you need assistance, feel free to reach out so we can discuss the options available to you. Should that include seeking help from a financial advisor, I would be happy to make a recommendation/introduction. You can also call me to discuss Zoltan M Padar broker/funder 403-253-2022