of Lloydminster

Your Community Minded Realtors

Contact Us Anytime

Office: 780-808-2700
Toll Free: 866-666-2700
remaxlloydminster@gmail.com

RE/MAX Of Lloydminster
5726 - 44 Street
Lloydminster, AB
T9V 0B6

"each office independently owned and operated"

 

Property investment is more challenging than ever due to a buoyant housing market in major cities and the rising cost of living. Many people are concerned they'll never be in a position to buy a property, but the great news is there are several keys things you can do to get your foot on the property ladder.

1. Consult a financial planner. Once you've decided to buy a property, seeking financial planning advice is imperative. A financial advisor can save you a great deal of time and money, and help you avoid the costly mistakes made by many inexperienced home buyers. A financial planner will help you realistically assess your budget and suggest strategies to maximise your income and prepare for the future.

 

2. Develop a savings plan. There's no point trying to save a deposit for a house if you don't have a solid savings plan in place If you're serious about property investment. you need a plan, developed in consultation with your financial advisor, that allows you to build your nest egg while not sacrificing your quality of life today. After deducting your current housing costs, try to put aside the same amount which you have calculated you can afford to pay towards your mortgage each month. This way you'll be able to determine if you can realistically afford these payments before taking the plunge into property ownership. You'll be bringing the dream of property ownership closer to reality by making regular substantial contributions towards your deposit.

 

3. Research. While it's great to seek help from financial planners, it's also important to educate yourself on the property market and financial products. Research the areas you would consider buying in to get a good understanding of market values. Go to property listings well before you're ready to buy so that you have a solid idea of what you can expect to get for your budget and the different options available. If you're experienced at attending open houses you're far less likely to fall head over heels with a property and make an unwise decision based on your heart instead of your head. Talk with a Mortgage Broker  to learn about the different types of loans available and discuss which one best suits your needs.

 

Property investment requires a great deal of financial planning and consideration, but it's worth it to get your foot on the property ladder.

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Your home is probably the most significant purchase you'll ever make, yet it's surprising how many people simply continue paying their mortgage every month without thinking too much about it. However, there's no reason to stick with your current deal if you're unhappy with it - and refinancing can often dramatically improve your daily finances. Here are four compelling reasons to consider a remortgage.

Receive a Better Rate

When you took out your mortgage, you were probably quoted a beneficial rate in a bid to earn your business. However, as time goes on you'll probably find the interest edges upwards - there's usually little reward for loyalty, and the most attractive deals will generally be given to new customers. However, a remortgage gives you the opportunity to negotiate a lower interest rate and therefore more affordable monthly payments, whether you stay with your current mortgage provider or move to a new one.

Change the Term

Lengthening the term will reduce your monthly repayments at the cost of more interest being paid overall. If your finances have taken a turn for the worse since you took the mortgage out, this can potentially make the difference between staying in your home or being forced to sell. The other side of the coin is that shortening the term will increase your payments but see you free of your mortgage more quickly, potentially saving a considerable amount of money along the way. Either way, a mortgage refinance gives you the flexibility to reorganize your finances around your primary asset.

Switch Mortgage Type

Economic conditions change over time, and this is reflected in fluctuating interest rates on typical mortgages. When you first bought your home, you may have opted for the security of a fixed-rate deal, but this may no longer be the most cost-effective option. Switching to a a variable-rate mortgage could let you take advantage of current low base rates. On the other hand, if you currently have a variable-rate deal, you may feel now is a good time to lock in a low rate by switching to a fixed deal.

Release Equity

Whether for home improvements, debt consolidation, or simply to take advantage of real estate price rises to get a little extra cash, if your outstanding mortgage is significantly less than your home's value you can unlock the difference with a remortgage. By taking out a larger loan, you can pay off your existing debt with some money leftover to spend how you like - and if you get a better mortgage deal in the process, then all the better.

A home loan is probably the biggest single financial commitment most people have in their lives. However, your current deal is not necessarily set in stone. Assessing your options and switching to a more appropriate package could give your finances a welcome boost for relatively little effort, so why not consider applying for a remortgage?

 

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