Mortgage Refinancing In New Year: Financial Resolutions For Canadian Homeowners

Happy New Year, fellow Canadians! As we shake off the remnants of holiday cheer and embrace the crisp winter air, it’s time to turn our attention to our finances. For many of us, the new year brings excitement and a financial hangover from the festive season. But fear not, this blog post is here to help you navigate the post-holiday period and set yourself up for economic success in the year ahead. This year, consider refinancing your mortgage to improve your financial health.

Refinancing Your Mortgage: A Smart New Year’s Resolution

Let’s be honest, January can be a tough month. Credit card bills with reminders of our holiday shopping sprees start arriving, heating bills continue to climb, and the allure of post-holiday sales beckons. It’s no wonder that many Canadians feel a financial pinch this time of year.

• Assess Your Holiday Spending: According to a recent survey by CPA Canada and BDO Debt Solutions, a whopping 94% of Canadians anticipated feeling financial stress this past holiday season. Take a deep breath and review your holiday spending. Where did your money go? Identifying those areas of overspending can help you adjust your budget for the new year.
• Tackle Credit Card Debt: Did you know that Canadians hold an average credit card debt of $4,000? If your holiday spending added to that burden, create a plan to pay it off as quickly as possible. Consider balance transfer options or debt consolidation to lower those interest rates and get back on track.
• Re-evaluate Your Budget: With the holidays behind us, it’s time to revisit that budget. Factor in any changes in your income or expenses, and make sure your budget reflects your current financial reality.
• Resist Post-Holiday Sales: Those “amazing deals” can be tempting, but be strong! Ask yourself if you truly need that item or if it’s just an impulse buy. Stick to your budget and only purchase things you genuinely need or have planned for.

New Year’s Financial Resolutions: Is Refinancing Right for You?

The new year is a perfect time to set some financial goals and resolutions, especially for homeowners. Here are a few ideas to get you started:

• Increase Your Emergency Fund: Aim to boost your emergency savings. Unexpected home repairs, like a leaky roof or a furnace breakdown, can be costly. Having a robust emergency fund can save you from financial stress when those unexpected events arise.
• Prioritize Debt Repayment: Make a plan to tackle high-interest debt, like credit card balances or personal loans. The sooner you pay it off, the less you’ll pay in interest charges.
• Review Your Mortgage: With interest rates fluctuating, it’s wise to review your mortgage. What is refinancing a mortgage? Refinancing involves replacing your existing mortgage with a new one, potentially with a lower interest rate or different terms. Consider refinancing to secure a lower interest rate or shorten your amortization period, potentially saving you thousands of dollars over the life of your mortgage. Refinancing the mortgage can also be a way to consolidate debt.
• Plan for Home Renovations: Dreaming of a kitchen makeover or a bathroom upgrade? Start saving and budgeting for those renovations early in the year.
• Schedule a Financial Check-up: A financial advisor can provide valuable insights and help you create a personalized financial plan. They can also help you stay on track to meet your financial goals.

Affordable Ways to Celebrate the New Year

Celebrating the new year doesn’t have to break the bank. Here are some budget-friendly ways to ring in the new year:

1. Host a Potluck Party: Invite friends and family over for a potluck New Year’s Eve party. Everyone brings a dish to share, making it an affordable and fun way to celebrate together.
2. Attend Free Community Events: Many communities organize free New Year’s Eve events, like fireworks displays, concerts, and family-friendly activities. Check your local listings to see what’s happening in your area.
3. Enjoy a Cozy Night In: Sometimes the best way to celebrate is with a relaxing night at home. Play games, watch movies, and enjoy a delicious homemade meal with your loved ones.
4. Go for a Winter Hike: Embrace the Canadian winter and go for a scenic hike or snowshoe adventure. It’s a free and healthy way to celebrate the new year and enjoy the beauty of our country.

Looking Ahead: Spring Cleaning Your Finances

As the new year unfolds, consider giving your finances a “spring cleaning”: Review Your Insurance Policies: Ensure your home insurance and other policies are up-to-date and provide adequate coverage. Shop around for better rates if needed.

• Check Your Credit Report: Obtain a copy of your credit report from Equifax Canada and TransUnion Canada. Review it carefully for any errors or discrepancies.
• Organize Your Financial Documents: Get those financial documents in order! Organize your tax slips, insurance policies, investment statements, and other important paperwork.
• Automate Your Savings: Set up automatic transfers to your savings account each month. This makes saving a regular habit and helps you reach your financial goals faster.

Start the New Year on the Right Financial Foot!

By taking proactive steps to manage your finances during the new year, you can set a positive financial tone for the year ahead. Remember, Pegasus Mortgage Lending is here to help you consolidate debt, refinance your mortgage, or plan for future home renovations. Contact us today to explore your options and achieve your financial resolutions. Wishing you a happy, healthy, and prosperous New Year!