As the weather gets warmer and spring blooms around us, it's the perfect time to refresh your finances and give them a good spring cleaning. As your trusted mortgage professional, I am here to help you get started with some tips and insights on how you can get your finances in order and prepare for a brighter financial future.

REVIEW YOUR CREDIT REPORT
The best possible starting point for any review of your finances. Your credit report is a crucial component of your financial health, and it's essential that you check to make sure it’s accurate and up to date. You can obtain a free credit report from each of the major credit reporting agencies once a year, and you can also use a variety of services to get a rough update as well, so take advantage of this opportunity to review your report and ensure everything is correct.

CONSOLIDATE HIGH-INTEREST DEBT
While mortgage rates have gone up over the last year, they’re still considerably lower than other high-interest forms of debt, such as credit cards for example. Consolidating multiple high-interest debts into a single lower-interest mortgage can help you save money on interest and simplify your payments. By consolidating your debts, you can streamline your finances, reduce your overall payments, and focus on paying off your debt more quickly.

REVIEW YOUR SUBSCRIPTIONS AND CANCEL UNNECESSARY ONES
Many of us subscribe to various services, such as streaming platforms, subscription boxes, or gym memberships, and over time, we stop using them or no longer need them. Review your subscriptions and cancel any that you no longer use to free up some extra cash each month.

CREATE A BUDGET AND MANAGE YOUR EXPENSES
With higher interest rates affecting those with variable mortgages, creating a new and updated family budget is crucial to your finances in 2023. If you have a mortgage renewal coming up, it’s a great time for us to touch base so you get an idea of what your new mortgage payments will be. Adjusting to these new costs and developing a new budget will help you identify ways that you can reduce your expenses, and more importantly can reduce the chance of going into debt, and then adding interest and repayment to your monthly costs.

BUILD AN EMERGENCY FUND
After doing the above steps, if you’re able to increase your cash flow, and reduce your expenses, building an emergency fund is crucial to helping cope with unexpected expenses and financial hardships. This can include job changes, medical emergencies, or even an unaccounted bill. Work towards building up a reserve of 6 months salary before starting to spend freely on things like expensive vacations or major non-essential purchases.

The next Bank of Canada rate announcement is April 12, 2023 and most economists are predicting a rate hold. This presents a good opportunity to give your finances, budget, and spending a good spring clean. If you’re looking to find ways to create cash flow, and manage your expenses effectively, then it’s a great time to touch base. I’m here to help anytime.

Federal Budget 2023: Highlights for Homeowners/ Homebuyers

• A two-year ban on non-resident, non-Canadians purchasing residential property is in effect to curb speculation and ensure houses are used as homes for Canadians.
• The Tax-Free First Home Savings Account is here! This will allow first-time buyers to save up to $40,000 tax-free to buy their first home.
• Profits from flipping properties held for less than 12 months are fully taxed as income.
• The First-Time Home Buyers' Tax Credit has doubled to provide up to $1,500 in direct support to home buyers to offset closing costs.
• The Multigenerational Home Renovation Tax Credit provides up to $7,500 in support for constructing a secondary suite for a senior or an adult with a disability.
• GST/HST will be applied to all assignment sales of newly constructed or substantially renovated residential housing.
• A top-up to the Canada Housing Benefit in December 2022 provided low-income renters with a $500 payment to help with the cost of housing.