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Are Debt Problems Preventing You from Getting Ahead?

Author: Keith Uthe Demystifying Mortgages | | Categories: Construction Mortgage , Home Mortgage , Licensed Mortgage Agent , Lowest mortgage rate , Mortgage Associate , Mortgage Broker , mortgage interest , mortgage prequalifying , Mortgage Rates , Mortgage Refinancing , Mortgage Specialist , Second Mortgage

Are Debt Problems Preventing You from Getting Ahead - Blog by Keith Uthe Demystifying Mortgages

Debt is a familiar battle people are faced with today as they depend on credit to bridge almost every financial gap from buying groceries to purchasing a house and even getting an education. As a result, debt instruments like mortgages and credit cards have become a norm to improve living standards. This isn’t necessarily a bad thing, however, getting into debt without a financial plan or an exit strategy can eat away your savings and push you to the point of irreversible financial distress. 

Getting out of debt isn’t always easy, but it isn’t impossible, even if you have limited finances, zero assets, and no clue of where to start. To help you overcome your troubles with almost any kind of debt, so that you can start saving for the future instead of paying for the past, Keith Uthe Demystifying Mortgages has solved three debt problems that are preventing you from getting ahead.

1. Are you living paycheque to paycheque and still not get ahead of your debt payments? Is this preventing you from paying down your mortgage or buying a home?
Unsecured credit card debt can be challenging to manage as a credit card debt of only $15,000 at 19.99% interest will take hundred-and-fifteen years to pay off, provided you make the minimum payments. If you have unsecured credit card debt, keep in mind that consolidating the debt by refinancing your first mortgage or even the second mortgage will save you thousands compared to the credit card interest. 

If your mortgage interest rate is currently over 3%, it is a great opportunity to lower your payment and save thousands in interest over the next five years.

In case a credit card or loan debt is preventing you from qualifying for the mortgage you want, then a cash-back mortgage may be the best solution for you. By taking advantage of these programs, you get to pay off your debt so you can get the home you want.

2. Have you not been able to save for a down payment?
Saving for a down payment can be difficult to do. But if you’re a first-time homebuyer, there are great options through the Home Buyers Plan to borrow funds from your own Registered Retirement Savings Plan (RRSP). The Federal Government is also introducing new programs to help match down payments for a small share of property equity, and full details will be announced soon.

For those that do not have RRSP savings, it is possible to get a down payment loan. However, you have to qualify for the loan and ensure the debt servicing is still in line. You will also need to have at least 1% of the purchase price saved for closing costs.

3. Are you looking to buy a new house but unable to sell your current home?
In a slow real estate market, this can happen often. One solution to this problem may be to keep that home as an investment property and rent it out. The rent that you receive will help offset the debt and hopefully contribute to your income. Working with a mortgage broker that thoroughly understands real estate investments is critical if this is a path you wish to explore.

If you’re looking for a mortgage specialist in Calgary, Alberta, reach out to Keith Uthe Demystifying Mortgages. As an independent mortgage agent with The Mortgage Alliance Enrich Mortgage Group, I aim to direct you to a life of abundance. Unlike a bank agent, I represent your needs to different lenders to find you the best terms for your mortgage. Besides this, I am available to answer your questions and assist you throughout your mortgage journey. 

To learn more about the services I offer, please click here. To read what my clients are saying about me, please click here. If you have any questions about debt problems or the way I function, contact me to book an appointment.