How To Pay Off The Mortgage Early

How To Pay Off The Mortgage Early

One of the largest purchases we’ll ever make is when we buy a home. It’s an exciting time but also very stressful. Along with this large purchase comes an equally large mortgage. This new debt will typically take between 25 and 30 years to pay off, but many people choose to pay off their mortgage earlier.

Paying off the mortgage early is an important financial goal. It’s a goal that typically (and hopefully) is achievable before retirement.

Paying off the mortgage early is a great medium-term goal, something achievable within 10-20 years (or even earlier if you’re really aggressive). This makes it a very interesting financial goal to include in your financial plan. Unlike investing, paying off debt is very predictable, so it can be very motivating to see steady progress against your mortgage each year.

Getting rid of your mortgage is a great feeling! It’s incredibly satisfying to see those mortgage payments disappear forever. It’s also nice to know that you have the security of owning your home outright.

Paying off the mortgage early also removes a large burden from your monthly cash flow. This creates a lot of flexibility to make lifestyle changes, switch careers, take more time off work, or even retire early.

There are different ways to pay off a mortgage early. Which method you choose will depend on your personal and financial goals. The important thing is to make a plan.

Making a mortgage payoff plan can be exciting. It’s amazing to see how those future payments can quickly reduce your mortgage. Making a plan is easy and we’ll show you a couple of examples using our free debt payoff tool. It’s always important to balance paying off the mortgage early against other financial goals, like saving for retirement. So make sure your goal to pay off the mortgage early is part of your overall financial plan.

The Tax Free First Home Savings Account (TFFHSA) Explained

The Tax Free First Home Savings Account (TFFHSA) Explained

There is a new tax advantaged account in Canada, the Tax Free First Home Savings Account! Along with the TFSA and RRSP, the new Tax Free First Home Savings Account (TFFHSA) is another great way to reach your financial goals in a very tax efficient way. The account provides a significant advantage to those planning to purchase their first home and creates a new option for parents who are thinking about helping their children with a future home purchase.

The new Tax Free First Home Savings Account (TFFHSA) does add a little bit of complexity to an already complex landscape of tax planning options, however like the TFSA and RRSP, if used properly it can help accelerate progress towards financial goals like purchasing a home and planning for retirement.

When saving and investing for future goals you can now choose between TFSA, RRSP, and the new TFFHSA, and for families with small children, there is the RESP too.

The new Tax Free First Home Savings Account is very new, so in this post we’re going to explore how this account works, the eligibility criteria, the contribution and withdrawal rules, some things to possibly watch out for, and some strategic options when using it within your financial plan.

How Much Money Does Life Insurance Cost?

How Much Money Does Life Insurance Cost?

Life insurance is important, but how much life insurance should you purchase? How much money does life insurance cost? And how can you fit the monthly premiums into your current budget?

These are important questions. Life insurance is an important tool, and it can be relatively inexpensive, but the cost of life insurance can quickly change depending on certain factors.

Life insurance is important when you have people who are dependent on your income. Young families in particular have a high need for life insurance, but at the same time, young families also have a lot of demands on their cash flow.

Purchasing affordable life insurance is an important part of a financial plan and the cost of life insurance needs to fit into monthly spending without causing a lot of stress.

In this post we’ll explore some life insurance costs for a family in their 30’s with a young child. We’ll see how life insurance costs can vary depending on certain factors. We’ll also see how much life insurance costs in a real life situation.

If You Had To Purchase Your Home Again Today, Could You Afford It?

If You Had To Purchase Your Home Again Today, Could You Afford It?

One disconcerting phenomenon we’ve noticed recently is that many people, if they had to purchase their home again today, likely couldn’t afford it.

With changes to down payment rules and mortgage qualification, plus the recent increase in home prices, the “numbers” needed to qualify for a home purchase are higher than ever.

The fact is that many people, if they were to purchase again today, would be priced out of their own homes!

There are a few reasons for this, which we’ll explore below, but based on affordability today, many of us might not be able to afford the home we live in today if we had to purchase it again.

We will also share three examples below of people who purchased their home in the past but likely couldn’t afford the same home today if they had to purchase again.

Four Financial Risks Worth Taking

Four Financial Risks Worth Taking

Sometimes you have to take a risk. But not all risks are created equal. Some risks have rewards that greatly outweigh the potential downside. These risks can pay off big-time down the road, but its important to pick the right ones.

When it comes to personal finance there are lots of risks (and lots of rewards!). Taking a few strategic risks can do wonders for your long-term personal finances. But it’s important to understand the trade-offs.

Almost nothing in the world of personal finance is completely risk free (except maybe a guaranteed deposit with an insured bank) but there are four financial risks that can be worth taking.

If you understand the potential downsides, these financial risks can have a huge positive impact on your finances.

Two (Less Obvious) Financial Benefits Of Owning A Home

Two (Less Obvious) Financial Benefits Of Owning A Home

There are a number of personal and financial benefits when owning a home. There is the stability, the forced savings of mortgage payments, the potential for appreciation etc. etc. But there are two somewhat less obvious benefits of owning a home.

These benefits will help homeowners financially, both before retirement in the accumulation phase and also after retirement in the decumulation phase. These benefits will make it easier for homeowners to achieve their financial goals, decrease taxes, and minimize government benefit clawbacks.

In this post we’re going to explore two, perhaps hidden, benefits of owning a home.

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