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Whether you’re a prospective homebuyer or an existing homeowner already paying down a mortgage, ensuring your finances are in good order is crucial for your overall financial health. 

With tax/RRSP season just around the corner, now is a great time to review your current financial plan to identify potential improvements.

This could mean relatively small changes that could improve your credit score which can get you access to better interest rates. Or it could involve something large changes like refinancing your mortgage to rid yourself of high-interest debt once and for all.

Managing one’s financial health remains as important as ever. Money issues continue to be the number one cause of stress for four out of 10 Canadians, according to the latest FP Canada Financial Stress Index. 

Nearly half of Canadians aren’t confident they’ll be able to cover their family and living expenses this year without going into further debt, according to the recently released MNP Consumer Debt Index.

4 Tips to Improve Your Financial Health

Emergency Fund

Expect the unexpected by having easily accessible funds on hand to cover those surprise expenses. Whether it’s medical costs related to disability or an emergency home or car repair, having funds set aside means you won’t need to go into debt to cover the costs.

Automate Your Savings

While it’s important to take care of debt, it’s also important to build up your savings, whether for retirement or investing purposes. The easiest way to put that money aside is to automate the process. Have a set amount withdrawn from your account coinciding with your pay directly contributing to your investment plan.  Small regular contributions add up to large savings over time. 

Credit Score

It’s easier to improve your credit score if you know exactly what’s weighing it down. Both TransUnion and Equifax Canada offer credit report-monitoring services that notify you of any changes to your score, as well as a summary of the factors negatively impacting that score.

Prioritize Paying Off High-Interest Debt

Credit card debt with rates of up to 29% compounding monthly is one of the most destructive factors impacting personal finance out there. Paying off this debt should be a priority. If the amount is insurmountable, consider consolidating that high-interest debt and shifting it to a lower-interest account, or we can look to refinance it into your mortgage.

Speak to a Professional

As your Mortgage Professional with a Personal Financial Planning Designation, I’m uniquely qualified to advise you on the best options. I also have access to a wealth of professionals that can assist where I am not licensed to.

Knowing how to start the journey of improving your finances can be overwhelming. But oftentimes there are solutions that may not be obvious. Everyone’s financial and personal situations are different and there’s no one-size-fits-all solution. This is especially true for mortgage refinancing.

Reach out today to discuss your options!