A mortgage is possibly one of the largest expenses you will ever have to pay. Most likely, you’ll eventually want to purchase your own home, so a mortgage is definitely something you can’t avoid. Mortgages payments are extremely stressful, but don’t worry too much! With a few simple steps, you can pay your debt in a timely manner, saving you money on interest and additional payments.
Weekly or Bi-weekly Mortgage Payments
Figure out whether or not your mortgage company allows you to perform weekly or bi-weekly payments. Accelerating your payment options can save you money on interest charges, while still depositing the same amount of money towards a monthly payment. If bi-weekly payments aren’t an option for you, then open a bank account specifically for your mortgage payment. Once you do that, try depositing half-payments every 2 weeks and use that money to make your full mortgage payment on every second deposit.
Make Small Sacrifices in Your Spending
Make small sacrifices by cutting down on unnecessary and impulse spending. For instance, stop buying your lunch at work and start bringing it to work instead! Saving almost $100 per month on food and coffees alone will provide you with more money to pay off your mortgage. If you see a product that you think you need, ask yourself if you can live without it! When you buy an item and your rationality is that “it doesn’t cost that much, so I’ll buy it,” eventually, the money you spend on impulse purchases will add up.
Consider selling your larger home to gain more profits and purchase a smaller, less expensive one. Purchasing a smaller home will cost significantly less money, ultimately reducing your debt! Plus, with smaller homes, there’s less expenses on home furnishings, decorations, maintenance and more.
Find the Right Real Estate Agent
Real estate agents will assist you with the home-buying process by helping you find the best home that satisfies your needs. They are professionals, so they know about homes before they hit the market and will understand how to negotiate on your behalf so you receive the best home appropriate for your needs, for the greatest possible price!
Purchase a Home you can Afford
Get pre-approved for a mortgage before you begin looking for a home. Determine the maximum amount of a mortgage you qualify for, then use this information to estimate your mortgage payments and find homes that are beautiful and affordable.
Rent Out Space
If you’re ever out of town, consider listing your home on Airbnb and use the profit to pay off your mortgage. If you’re okay with living at your parents’ house for a while, an effective way to avoid debt is by renting out your first home and turning it into an investment property. Once you find tenants, you can use the revenue you earned to reinvest in your property.
If you wish to purchase a condo in Vaughan, contact Vondos so we can assist you in finding the right home that suits your financial needs!