Increased living expenses and high interest rates are makingmany Canadians feel financial pressure. You are not alone if you are leftfeeling a little helpless these days. Headlines that constantly refer to risinginterest rates and inflation are causing a lot of stress. The good news is, youcan still save money and improve your monthly cash flow in an environment whererates are higher than we have seen in years. Here are a few proactive steps youcan take to feel empowered and take control of your finances:
1. It’s always a good time fora mortgage review.
Having a mortgage advisor providea full analysis of your mortgage terms could reveal opportunities to improveyour situation. As an example, you may benefit from refinancing your currentmortgage in order to consolidate other high-interest debts to reduce yourmonthly payments. You may also be able to increase the amortization on yourexisting mortgage, or change your payment frequency to lower your monthlymortgage costs.
2. Be proactive with yourmortgage renewal.
If your current mortgage has a renewalwithin the next 12 months, you will receive (or may already have received) anautomatic renewal offer from your current mortgage lender. We strongly suggestyou don’t accept that renewal offer without talking to a mortgage advisorfirst! In most circumstances, we are able to shop other lenders, negotiatebetter rates, and ultimately save you more money than if you just accept whatyou are being offered.
3. Check your spending habits.
Take the time to go through your bankstatements and receipts. Make a list of all hard and soft expenses and groupthem accordingly. It may feel impossible at first, but challenge yourself tofind ways to save. Every little bit helps… cancel one or more streamingservice, make coffee at home, cut impulse spending, dine out less, price matchat your grocery store or use points or coupons to reduce weekly grocery costs.There are always little things you can do to spread your budget a littlefarther, you just have to be creative!
4. Supplement your income.
We know it can sound a bit cliché, butfinding a way to make a little extra money could go a long way. Whether it is a“side-gig” selling a talent, skill or product, renting out a room to students,or even building a rental suite in your home to help earn some money, a littlecan go a long way. Extra income can be used to pay down your mortgage, pay offdebt, or give yourself some breathing room every month.
By utilizing these steps to help curb monthly spending andimprove your cash flow, you may make a more financially secure future foryourself and your family. Let us help examine the conditions of your mortgage,advise on cost reductions, and support you in choosing to increase your income.Although some choices may not be the most comfortable in the short term, thelong term payoff is more than worth it. Whether it is managing your currentfinancial situation, or looking to your future, building a plan is the best wayto help you be empowered financially.
We are your Vancouver Island mortgage brokers serving you inVictoria, Nanaimo, The Cowichan Valley, Parksville, Qualicum, and beyond!