WILL YOU BE ABLE TO RETIRE WITHOUT A MORTGAGE?
RBC recently released its latest Housing Snapshot stats
Will you be able to retire mortgage free? This is a concern faced by many Canadians. With troubles in the financial markets hurting pension plans and retirement savings, rising tuition rates, increased housing costs, rising taxes and increased costs of living have made retirement for many a distant possibility. The government has also abandoned the mandatory retirement age of 65 in most provinces in Canada to ease the financial burden of retirement, as well as to make up for the upcoming shortages in the workforce in various occupations.
Saving for retirement through pensions, RRSP’s and real estate investment needs to start early and needs to be managed carefully. One growing reality for many Canadians is that they will still have to pay off their mortgage during their retirement. RBC recently released its latest Housing Snapshot stats and found that more than 50% of Canadians wills still be paying off their mortgage after 55 and almost 1/3 will be still be carrying their mortgage past 65. Will retirement be possible if so many are still carrying mortgages?
One reason many have such high mortgages is due to their credit card debts with high interest rates. It seems that many Canadians carry a significant debt load at high interest rates and spend more money than they should on their spending habits. This makes retirement at 65 very difficult.
According to the RBC survey, many are convinced that interest rates will remain stable over the next year and this opens many options for refinancing. Low interest rates, flexible payment options, partial interest mortgages, variable rate mortgages and fixed rate options all enable better financing options. However, it is hard to forecast what interest rates will do over the next year, and it is important to keep some room for increased costs, such as rate increases, increased property taxes and more.
With this in mind, it is important to take advantage of low interest rates and begin paying off debts with refinancing options, while seeking advice about how to agressively pay off a mortgage. If you are carrying debt on credit cards or unsecured lines of credit, it is vital to refinance at a lower interest rate, thereby using the extra money to pay off your loans.
While your bank may be able to assist you with options, a mortgage broker will have access to a large variety of funding options that can provide flexible payment options, lower interest rates and a wide variety of financing options. Another advantage of working with a mortgage broker is that you will have someone fighting for you to get you the best rates you are elligible for. When was the last time you felt your bank did this for you?
At One Stop Mortgage Corp, the Mortgage Brokers can provide you with the financing products you need to get your life back. They can offer you a wide variety of products that will suit your needs, and also give you solid advice about how to improve your credit, pay down your debts and find a way to reach retirement with a great chance of being mortgage free.
Home equity loans, debt consolidation plans, and refinancing are just a few of the solutions they have to help you refinance your mortgage at possibly lower rates and work towards becoming debt free.
Understanding how to best finance your needs and learning to manage your debt in ways that enable you to pay less in interest are key to begin working towards a mortgage-free retirement. Don’t be like the 1/3 of Canadians how may still be carrying a mortgage when they turn 65. Contact the One Stop Mortgage team and begin the path to financial freedom.
Call them today at 604 874 8988 or 1-877-874-8988 or email them at email@example.com.