October Shut The Front Door - Navigating a tough market
September 25, 2023 | Posted by: Sherry Corbitt
Navigating the Changing Real Estate Landscape: A Year of Challenges and Opportunities
The past year has been an unprecedented roller coaster ride for homeowners and homebuyers alike. With fluctuating rates and expired pre-approvals, many have felt the impact of these changing dynamics in the real estate market. It is crucial to acknowledge the challenges we face but also approach the future with positivity and preparedness. Lets explore key strategies to navigate these uncertain times and shed light on the often-misunderstood concept of second mortgages.
Budgeting: A Necessity for Financial Stability Amidst these challenging times, creating and adhering to a budget becomes increasingly crucial. As the saying goes, 'It's not about how much you make, but how much you save.' We urge homeowners and prospective buyers to carefully evaluate their financial situation and develop a realistic budget. By aligning income and expenses, individuals can gain greater control over their finances and be better prepared for their future mortgage obligations. If you don’t have a budget, email sherry@sherrycorbitt.ca and I can send you some resources.
Preparing for Mortgage Renewal For current homeowners, staying proactive and preparing for upcoming mortgage renewals is essential. If your existing mortgage was initiated between 2019 and 2020, it is highly recommended to review your plan for renewal. Being mindful of the approaching deadline will allow you to explore options, negotiate rates, and secure a favorable mortgage term. By taking proactive steps, you can ensure a smoother transition into the next phase of homeownership.
The Importance of Pre-Approval Future home buyers need to familiarize themselves with the significance of obtaining a pre-approval. This process provides two primary advantages. Firstly, a pre-approval locks in the interest rate for 120 days, safeguarding against any further rate increases. Secondly, it enables buyers to establish a budget based on their current financial situation. This information becomes pivotal when anticipating potential rate fluctuations and their impact on purchasing power. Initiating this step now allows for strategic planning and minimizes the risk of unexpected financial obstacles later.
Demystifying Second Mortgages Contrary to popular belief, second mortgages are not indicative of financial mismanagement but rather a necessary financial tool for many individuals. A second mortgage is typically a loan placed in second position behind an existing first mortgage. It grants homeowners access to their home's equity without incurring penalties or higher interest rates associated with breaking the first mortgage. Second mortgages can also serve as temporary solutions to offset increased first mortgage renewals or bridge financial gaps until significant life events occur.
During these uncertain times, it is paramount to approach the real estate market with a combination of realistic expectations and proactive planning. By sticking to a budget, preparing for mortgage renewals, obtaining pre-approvals, and having open discussions about future financial scenarios, you can navigate the changing landscape with confidence. Additionally, understanding the merits of second mortgages can provide viable options to support your financial goals.
As we continue to navigate this fluid market, our goal is to provide solutions, not just rates and help you and your family see and prepare for tomorrow.
CLICK HERE to enter to win the $100 gift card to Costco – draw happens Oct 2nd and winner announced by email.
Stay well my friends,
Sherry Corbitt,
Mortgage Broker Level 2
