Saving up to purchase a home is no walk in the park, but don’t forget that you’ll have to keep on top of your monthly mortgage payments long after your down payment has been made. In Canada, you never truly miss a mortgage payment, you’re just “late”. Your records will show every month after that as late unless you make two payments at once plus late fees. For most of us, that’s a chunk of money we’d rather have sitting in a savings account or using towards day-to-day expenses. Here are some tips to keep you out of the red:
Every good budget starts with a list of incoming and outgoing money. Sit down and take a look at all of the instances where money is flowing into your accounts. That could be government tax cheques, pay cheques, really anything coming in on a regular basis. Jot down when you’re getting that money, too. Once you’ve sorted through your income, now it’s time to track your expenditure. List out everything from your mortgage payment to average grocery bill, your phone statement to your Netflix. Your final step is to simply subtract your expenditures from your income. That number is what you should be working within when it comes to extra spending, paying off outstanding debt, and building your savings.
When it comes to money, knowledge is absolutely power. Once you know your expenses, set them aside so that you aren’t accidently digging into them on your night’s out or while online shopping. Each month you will be able to glance at your bank accounts to see exactly how much money you have divvied up into expenses, spending, and savings. Plan for the unexpected and always keep a little bit more than you need. That way if something happens with your job or some sort of unexpected emergency, you won’t be struggling financially.
Does your mortgage agreement allow you to make bi-weekly payments? Can you use any “found” money, like a yearly bonus, towards prepayment? Can you “top-up” your mortgage payments? Talk with your mortgage broker to discover different ways to pay your mortgage. They can ensure that your payment plan is custom fit to your lifestyle. When this happens, you’ll find you’ll end up paying less in the long run!
Budgeting for your mortgage payments doesn’t need to be rocket science. All you need is a little preparation and knowledge. Call us today at 403-341-7800 to see how you can tailor your mortgage to you!
Source was absolutely great to work with - went above and beyond to help us get everything done when buying our new home. Highly recommended!! Chad and Jenelle Richards Jan 09 2013
Chad and Jenelle Richards
Added January 23rd 2013
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