When the future of your finances is uncertain it can be difficult to think about making any big decisions when it comes to money. One that may crop up is what you should do about your mortgage. Or if you are thinking about buying a new home is now the time to do it. The pandemic has caused more stress when it comes to thinking about finances especially when it comes to mortgages.
Should You Think About Re-Financing Your Mortgage?
If you have a mortgage in place that has high-interest rates then you may be thinking about the great low mortgage rates that are currently available. Opting for re-financing of the mortgage could have some substantial benefits. It could help to lower your monthly payments now and bring you substantial savings overall when it comes to what you are paying in interest. However, this is something that should be carefully studied. It means looking at the terms of your current mortgage. There may be a hefty penalty to address if renewing the mortgage. Every mortgage is different so it is important to look over the terms of the current mortgage carefully.
Before making the final decision the first step is to speak to a mortgage professional to find out what the advantages and disadvantages would be.
Buying A New Home
For those that have been thinking about buying a new home then the mortgage rates that are available today in Canada are most enticing. With some proper research, an interested party may be able to find a mortgage rate as low a 1.64% being offered by some banks. Again though there are other things to consider.
Qualifying
Just because the mortgage rates are at an all-time low it doesn’t mean that everyone will automatically qualify. The lending institutions still have their criteria in place as to who will qualify. They will be looking closely at the finances of those who are applying for a mortgage. They will want to know that the applicant will be able to carry the mortgage, which will mean having an income that will allow for this. Job stability may be something that they scrutinize closely.
The Right Time
When it comes to mortgage rates now may be the right time to consider this. At the same time, the rest of the circumstances have to be looked at. Which includes looking at the housing market.
The Housing Market
One would think that with the uncertainty that the pandemic has created that the housing market would have hit a new low. Where it did just the opposite and rose. What this means is that buyers will be paying more for houses and will have more competition. The extra costs will increase the mortgage that is needed so some of the benefits of low-interest rates may be reduced. At the same time, it does allow those looking to buy a new home a great opportunity for lower financing.
What Does The Future Hold?
In unique times like what the pandemic has created everyone has to think about the future and what is in store for them concerning their finances. For those who own a business, this is a very uncertain time. There is hope on the horizon due to vaccines becoming available but the time span as to when these will make a difference is unpredictable. This makes it very difficult for business owners. If they are thinking of doing anything when it comes to mortgages they have the situation to consider as well.
What does not change is the fact that we are now entering into tax season. There are no options here when it comes to tax filing. This can be a cumbersome responsibility whether you are filing personal taxes or business taxes. To help make this less stressful for you why not use my very affordable tax services.
