Monday, November 12, 2012

What You Think About Mortgages

Whether you currently own your home or are a first time buyer, most of you consider home an investment rather than an expense.  A recent poll conducted by Scotiabank found that a 77% of
Canadians think that way. Here is what else we know:

  •  For Canadians who see the home as an investment, not as expense - the differences between the regions are as follows: Quebec (79%), Manitoba/Saskatchewan (80%) and Alberta (69%).
  • Women (80%) are more likely than men (73%) to agree that homes are an investment, not an expense.
  •  Among Canadians who don't own a home, 12 % plan on purchasing a home within the next year.
  • Women are more likely than men to be renting their home (30% of women vs. 24% of men).
  •  Two-thirds (69 %) of Canadians report owning a home. For Canadian home owners, 40% are living mortgage-free.  
  • Canadian homeowners over 55 are the most likely to currently be mortgage-free.
  •  One-third of Canadians (34% say they will be relying on their home equity to support them in retirement.  
  • Those who are between the ages of 35-54 are the most likely to say they are relying on their home equity to support their retirement (41%).
  • The majority (81%) of Canadians agree it is important to become mortgage-free as soon as possible. 
  • The most common step Canadians are taking to pay off their mortgage faster is to increase the frequency of their regular payments (29%).  
  • Male mortgage holders are more likely to be able to make additional mortgage payments (70% vs. 51% of women).
Here are some ways to pay off your mortgage early:
  1. Increase your regular payments
  2.  Make lump sum payments whenever possible
  3. Move to accelerated bi-weekly payments
How can you do this as pain-free as possible?

  1. Pay off all your debts to avoid higher interest expenses
  2. Refinance to pay off your debts and make the same payment  
  3. Use any new found money such as pay raises to increase your regular mortgage payments.
For more ways to pay off your mortgage early, contact your mortgage broker.

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