Your home isn’t just a place to live, it’s also potentially the largest single investment you’ll ever make, and that’s worth protecting. Here are a few ways that you can ensure that the investment in your home remains financially healthy:
It’s important to make your mortgage payments on time. If you don’t, it will negatively affect your credit score in the short term. And in the longer term, it could lead to a ‘default’ on your mortgage. You can make manual payments directly through online banking, but we recommend setting up pre-authorized monthly mortgage payments, so you don’t have to remember.
An emergency fund is money set aside only for unforeseen emergencies such as an illness or loss of job. During this challenging time, it can help you meet your financial needs and obligations, like mortgage payments, bills and food. Here’s how you can start saving:
A good way to save your emergency fund is through a Tax-Free Savings Account. That way your money will grow tax free and can be withdrawn when you need it.
Home improvements are a great way to increase the resale value of your home. It also tells your neighbours that you take pride in both your home and community. Some improvements, like fixing your roof or eavestroughs, may not look flashy but protect your investment, while others allow you to see the value of your home increase before your eyes, like a kitchen or bathroom renovation. If you don’t have the funds on-hand, here are a few ways Northern can help you manage your reno costs:
Home insurance is, perhaps, the best way you can protect the investment in your home. Also, most mortgage lenders require proof of home insurance before advancing a mortgage. Home insurance may differ from insurer to insurer, but typically it protects your home and its contents from unforeseen calamities, like fire, theft or natural disasters. It also usually provides homeowner liability coverage.
Living within your means is the cornerstone of your financial health. Put simply, it means you spend less than your net monthly income. As straightforward as this sounds, achieving a balance of spending and earning can be challenging. Your best bet is to create a monthly budget and try to stick to it. That way you’ll have a clear idea of your monthly expenses, spending, saving and how much money you have for non-essentials.
If you have any mortgage questions or need a hand financing your renovations, just give us a call at the True North Hub at 1-866-413-7071 or book an appointment with a Mortgage Expert.