Mortgage Blog

Feathering Your Nest

April 20, 2015 | Posted by: Kelleway Mortgage Architects

Feathering Your Nest

Since your attention is drawn to your personal finances when filing your Year 2014 income tax,  why not use that same information to strategize for the remainder of Tax Year 2015?  Perhaps a cash flow analysis with your favourite mortgage broker would be helpful?

Some recent topics we’ve discussed with clients regarding their mortgages and household debt include the following.

1)  Parental Leave.  Are you expecting a new addition to your family and a resulting decrease in household income?  At the same time, are you expecting an increase in household expenses?  For example, is that “new addition” to your family going to require additional housing space or a larger vehicle, resulting in a higher debt load?  If so, best to update your mortgage plan now before sleep deprivation sets in!

2)  Job Interruption, Downsizing or Job Loss.  For some of our Alberta clients, uncertainty in their work environment - especially in oil-related industries -  has got some thinking about streamlining their income, expenses and debt load.  They are actively seeking a buffer, or a “fall back” plan, to prepare for any unwelcome  economic news coming their way.

3)  Empty Nesters.  Will you have any children “flying the coop” over the next couple of years?  Where will they live?  Are you planning on acquiring a rental property to rent out to students, with possibly yours being one of them?  What about tapping into an LOC to pay for school expenses? What are the implications of becoming a co-borrower or guarantor on a mortgage for a family member?  Or, perhaps you may want to know more about a reverse mortgage to better enjoy your retirement years?

4)  Nest Building.  Know of any love birds planning on purchasing and/or building their own nest?  We welcome chatting to those folks prior to their buying their first home together.   Running the numbers through different financial scenarios can be really helpful when deciding on an acceptable purchase price range or renovation budget.  With regard to total debt load and debt servicing ratios, we counsel that “just because you can get approved for more, does not necessarily mean you should go for it!”  Financial peace of mind in the love nest can be a beautiful thing!

If you have any questions about the above topics, give us a call – it’s a no charge conversation that could save you a bundle!

What's the Next Step for You?
1)    Keep us in mind and on hand in case anyone you know runs into the same sort of situaltion.
2)    Share this post with your friends and family because you never know when the info could come in handy.
3)    Call or Email Us just to connect and get started talking about your plans. (see below)
4)    Sign Up for Glen's Perspective newsletter > Click here

Glen Kelleway, BSc, AMP, Senior Mortgage Planner & Owner

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