As we move forward through the year, most of us have our eyes peeled on the slowing economy, the decrease in housing prices and how our household budgets will weather any storm that lies ahead.

And while I don’t think now is a time to panic, I do think that now is a perfect time to take a detailed look at our monthly cash flow – plan for paying down high interest debts, cut unnecessary expenditures, start building an emergency fund and reset all payments possible to make sure we come out on top.

While cutting back on our daily coffee runs and canceling unused subscriptions are helpful, the truth is that for most Canadians the real budget buster is the interest accrued on high interest, unsecured consumer debt. Currently, the average Canadian carries around $20,000 in consumer debt whether they hold a mortgage or not. With that in mind we are seeing an uptick in homeowners looking to leverage their valuable equity to pay out high interest debts. But with mortgage rates increasing, will you really be saving?

To calculate if consolidation is the right choice for you, we must first understand your effective rate or the combined rate you are paying across all your outstanding debts, including both your mortgage and other facilities. If your effective interest rate is higher than your current mortgage rates (or in some cases, even if it’s not) then consolidation could be an amazing option for you. With equity still at an all-time high across the country, smart consolidation via a refinance may not just save you thousands in accrued interest and give you one manageable monthly payment, but may also leave you with additional freed-up cash after your debts are paid out to invest or save for a rainy day.

If you’ve got questions about how to calculate your effective monthly interest rate, or would like help combing through your outstanding debts to get a solid understanding of how you can start building your wealth faster, reach out! I am here to guide you through the whole process and help set you up for long term success!

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Buying a home in BC could now cost less!

WATCH VIDEO HERE

The post BUYING A HOME IN BC JUST GOT CHEAPER WITH THE 2024 BC BUDGET appeared first on Jordan Thomson.

Read the full article here >> 

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BC Assessments are out and homeowners can check it out online at www.bcassessment.ca in addition to getting a copy in the mail.

There are 2 misconceptions that I hear every year from homeowners so I’ve decided to break it down to set the record straight.

1- Assessed value is not the same as Market Value

2- An increase in your assessed value automatically equals an increase in property taxes or conversely, a decrease in assessed value reduces your property taxes.

Here’s all the info! WATCH THE VIDEO HERE

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The Bank of Canada has held its trendsetting interest rate at 5.0% for a third straight setting and talk of further increases has been all but silenced.

In the statement that came with the most recent rate announcement, The Bank offered a number of reasons for the decision to hold steady:

– higher rates are “clearly restraining spending”
– the economy “is no longer in excess demand”
– the general economic slowdown is reducing inflationary pressures

Even though The Bank said it will hike again, if necessary, most market watchers are looking into their crystal balls trying to predict when, and by how much, The Bank will be cutting rates.

The post COUNTDOWN TO RATE CUTS! appeared first on Jordan Thomson.

Your mortgage is up for renewal and the interest rate you’re being offered is a lot higher than expected and going to put your finances in a pinch. Are there any other options?

There may be! If you have at least 20% equity in your home, a 25 year or less amortization and your home value was less than $1Million when you bought it, you may be eligible for “insurable” rates. These rates are better than traditional conventional rates and can save you a bundle in interest and help lower your monthly payments. The catch is you can’t get them from your bank. You can only access them through a licensed mortgage broker with a mortgage finance company aka a monoline.

Check out my interview with the Business Development Manager at one of Canada’s leading monolines to learn more. And of course, reach out to me to see what I can do for you!

The post HOW TO GET A BETTER RATE ON YOUR MORTGAGE RENEWAL appeared first on Jordan Thomson.

Define your Lifestyle: Do you love the hustle and bustle of city life, shun owning a car, hate cleaning, and are someone who spends little time within your home? Then a condo in Metro Vancouver or one of the other urban centres near transit (think Coquitlam, Burnaby, Surrey) could fit the bill for you. You don’t need to pay the huge prices of a home or townhome when a cozy condo would suit you just fine.

Growing Family or Backyard Lover? Then expect to live outside of Vancouver and be happy to do so because you are buying the community and home rather than proximity to the city. Today’s statistics shows that living close to family, schools, transit and family are a bigger determinant of where we want to live, versus living close to your job in the city .You may have to commute but you will get the house size and a smaller mortgage and expenses. Learn to love listening to audio books, music and podcasts!

Manage Your Expectations: You may have a dream home in mind but it pays to be flexible and understand that for most, if buying a first home, is just that; a first home that will get you into the market. In todays market the largest obstacle people face is not having a realistic understanding of what to expect and this leads to most of the frustration as they come face to face with the reality of what their dollar will get them. Addressing this head on at the onset sets up Buyers to make realistic and reasonable decisions.

The Money Talk: Firstly, speak to a mortgage broker and find out how much you can afford based on your income, job, credit, savings and debts. Work with them and other related professionals to set a plan on how to achieve your financial requirements if you haven’t already.

Know the math: How much down payment do I need, what are monthly payments, and can I afford them?

Chances are your rent is similar to a mortgage payment because your lifestyle and income have already determined where and what you live in. So, now it comes down to the down payment. This can come from your own savings, a gift from parents or immediate family member, the new First Home Savings Account or RRSP. There are options out there if you are willing to remain open; Can you live with your parents for a year and take what was your rent payment and put it towards a down payment? Consider on a $500,000 home, you can put as little as $25,000 down.

Knowing your options and preparing your finances and your expectations prior to house hunting can make your journey a much smoother and more enjoyable one! Keep an open mind and speak to your mortgage broker and real estate professionals today!

Need a professional and reliable mortgage broker on your side. Of course you do, so give me a call at 604-725-1607 or email jordan@citywidemortgage.ca

The post CAN I REALLY AFFORD TO LIVE HERE? appeared first on Jordan Thomson.

READ THE LATEST INFLATION NEWS HERE

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First, what exactly is amortization? The mortgage amortization period explained

So, what is the amortization period? It’s the total amount of time it takes to pay off a loan. The mortgage amortization period is the total number of years it will take to pay your mortgage in full. Typically, this is 20, 25 or 30 years. This seems like a very long time but as with any long-term goal, break it into smaller, more manageable steps.

In the case of your mortgage, these smaller steps are called terms, explained below.

Learn more about what it is, how it works and 5 ways to reduce your amortization!

The post Mortgage Amortization Explained – What is it and how does it work? appeared first on Jordan Thomson.

The Consumer Price Index (CPI) rose 3.3% y/y in July, up from a 2.8% rise in June. The acceleration in headline inflation was widely expected due to a base-year effect on gasoline prices, as a sizeable monthly decline in July 2022 (-9.2%) no longer impacts the 12-month movement. Excluding gasoline, the CPI rose 4.1% from 4.0% in June.

The mortgage interest cost index (+30.6%) posted another record year-over-year gain and remained the most significant contributor to headline inflation. The all-items excluding mortgage interest cost index rose 2.4% in July.

The CPI rose 0.6% in July, following a 0.1% gain in June, mainly due to higher monthly prices for travel tours, with July being a peak travel month. On a seasonally adjusted monthly basis, the CPI rose 0.5%.

Food price inflation eased last month but remains sticky.

READ THE FULL ARTICLE HERE

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