With OFSI finalizing the extension of the stress test to clients that have 20% down payment or greater, Canadians are left to wonder how they will qualify for mortgages for their home purchases. There is enough recent information on credible sources that I have linked to this post for complete information is you require more. Home ownership will continue to be of great importance to many Canadians and before you begin attending open houses, consider how you can create or increase your down payment. For many, increasing their income is a option to heavily consider, but it is an option that may require more education or other options take time to establish and maintain. When it comes to obtaining a part time job, clients do not realize that most lenders will only consider a part time job that you have maintained for minimum of 2 years or your guaranteed hours. So for example, if you have a been employed part time for one year with a  12 weekly hours guaranteed, even if you are able to pick up an extra 12 hours per week, the lender will not consider the additional hours toward your income for your application. Experienced Mortgage Professionals understand what to consider when it comes to your income for your application. Be sure to speak to them and tell them everything to ensure that you are not obtaining income that will have to omitted from your application anyway.     Regardless of what your existing income may be, creating a budget is something that is imperative to both the short term and long term goals of a family.     In the near future, I will break down different methods and explain a method designed to help clients change their financial narrative that is comprehensive and responsive. This point will highlight the general details and advantages of budgeting.       Here are the factors that you should consider when creating your budget:      
  1. Determine your household NET income: Many clients attempt to create their budgets on their gross income. This becomes a problem because you will encounter a shortfall which will be a problem for you rather quickly. Some figures to consider are union fees, medical benefits, other deductions that mat be offered through your employer. You will want to ensure that you are clear with the final figure that you will be working with.
  2. Outline how much consumer debt you currently have: Budgeting must include a solid debt repayment plan to ensure that you become debt free. If you have existing debt, ensure that you make more than the minimum payment if at all possible and to also maintain or establish an excellent credit rating. Interest payments are funds that you could be using toward many things that you could enjoy. I will always encourage my clients to pay off existing debt and never return to a lifestyle the requires borrowing in order to obtain anything you require in this life. I have personally seen clients save $2000 per month just by eliminating debt! Adding this to your household income will literally create options for your family that you can earn, maintain, and deserve. If you own an existing property with equity within it, speak with me to determine if refinancing is a suitable option.
  3. Determine your investment tolerance and find the appropriate vehicles to begin investing: Investing is an important component of budgeting because it has the potential to create income potential that will most likely be required in retirement years. When it comes to investing, there are many options. The importance is determining what works best your goals. Regardless of your current age, addressing investing is something that should always be considered to create options that may create a lifestyle of your interest.
  In the next coming weeks, I will break down the steps of budgeting and methods that I have seen assist clients with their long term finance goals. For this week, I wanted to simply address three key points to consider should you be in the process of creating a budget for your family.   If you would like further details before I release the following information, please call or email me directly.