Worst case scenario: you’ve just lost your job.
It’s a reality for thousands of people across the country and now it’s happening to you. Life changes and it changes quickly, being prepared for the unexpected is the best way for you to handle this situation, but that doesn’t always work out. Don’t let the stress take over; come up with a plan and work on achieving financial success even in your time of need.
There are many different paths that you can go down – but one of the first things you can do is speak with an advisor that can review your current situation and make the appropriate recommendations. It can be one big headache trying to figure out the next steps, but your advisor will know best.
Refinancing
One of the best ways to save money on your mortgage is by lowering your interest rate – you can change this by refinancing your rate and term. This method will make your monthly payments more affordable for you and give you a little bit of breathing room that you need at this time.
If you are paying a 6% interest rate, your refinanced rate might drop it down a bit, say 4 or 5%, you will save a little bit of money each month which you can save up to provide you with more funds.
If refinancing isn’t an option for you use some of your rainy day funds, if you have them
If you have any savings, try to use some of this money to keep you up to date with your payment schedule. Make your money last and use a budget and calculate your monthly expenses.
For example, if you usually spend $100 every two weeks on entertainment activities, you may want to bring it down to $25 or cut it out completely. When you have lost your job, you need to be realistic and know how far you can stretch your dollar.
Another example, if you usually shop at a more expensive grocer, you might want to check out discount grocers where you can find many of the same items for less. If you don’t have the security and safety net of rainy day funds, your options may be limited but a trained professional will be able to steer you in the right direction.
The knowledgeable and friendly staff at Northwood Mortgage can provide you with the recommendations you need in order to keep your finances in good health. Book an appointment with us at your earliest convenience. We have agents across the Greater Toronto Area who are more than happy to serve your needs.
