With the change coming to the housing market, home buyers might begin to find themselves looking at less expensive houses in order to purchase a home according to the new rules.
What might happen as we are nearing the period when interest rates rise, we will see Canadians stretching their budget; however what happens is that it might leave little room to deal with any unexpected financial challenges you may face.
To help you deal with future financial challenges, you can take different measures.
One of which is to make a larger down payment, by doing so you will be able to pay less interest over the life of your mortgage. You can take a shorter life of the mortgage, allowing you to pay less interest.
By cutting your amortization period you will be able to be mortgage free much faster than you might have anticipated.
For the time when interest rates do rise, you should consider making a savings account for the purpose you need extra funds to make any repairs or payments for your home.
Keep in mind, do not get dragged into today’s heated market, and by that I mean do not get locked into a bidding war because it can push your finances outside of your budget which can make it harder to afford the home.
Glen Chapman
Broker of Record with Club “100″ GMAC Real Estate
www.club100realestate.com
