Are you purchasing a family home? From purchasing mortgage life insurance to building up your savings, here are some simple and effective tips on how to handle your mortgage.
Your house is likely one of the largest and most important investments you will make, as it provides shelter for you and your loved ones. But what if something happened to you and your family couldn’t afford the mortgage payments any longer?
Mortgage life insurance ensures this NEVER happens as it is designed specifically to pay off your outstanding mortgage in the event of your unexpected demise or disability.
Mortgage life insurance will allow your loved ones to:
- live in the family home, mortgage-free, for as long as they want
- enjoy financial stability in the event that they no longer have your income
- have total peace of mind, knowing they’ll always have a roof over their heads
- spend your insurance funds in a responsible and beneficial manner
Protect Your Family Home With 20/20 Mortgage Life Insurance
At AIME, our leading team of financial experts have developed 20/20, Canada’s first digitized, paperless mortgage life insurance product. We aim to make MLI has affordable, transparent, and accessible as possible, to help suit all your family’s unique needs.
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CALGARY MORTGAGE LIFE INSURANCE
New Homeowners: 4 Tips For Managing Your Mortgage
While buying a family home is an exciting and life-changing experience, becoming a new homeowner means that you have even more to lose from poor financial management. To keep your mortgage payments on the straight and narrow, here are four simple tips you MUST follow:
1. Avoid Large Expenses
As a new homeowner, you may be tempted to run up credit cards and charge accounts for new furniture and appliances, so your home can be decorated and finished as soon as possible. BUT this can be very dangerous and can lead to an over-stretched budget and huge debts.
Here are some helpful tips on how to furnish your new home without going into debt:
- rank rooms in order of their priority and tackle your decorating in stages.
- try to incorporate hand-me-down furniture into your home.
- when buying new, consider asking for a cash discount
Remember: Spend slowly and schedule big expenses over time. It’s not necessary to make all the improvements in one go.
2. Ensure the New Expenses Fit in Your Budget
If you’ve been living with your parents, or in a condo, where utilities are covered, your first electric bill as a homeowner can send you into a panic. Before purchasing a home, you should have received an estimate of average utility bills for the location. This includes:
- electric bill
- water bill
- cable fees
- trash services
Make sure your budget can safely cover these expenses and give yourself a couple of months to adjust to these new bills before making any unnecessary or big purchases.
3. Maintain an Emergency Fund
As a new homeowner, you headed into the purchase after a lot of thought and after ensuring your earnings were high enough to sustain a mortgage. But unexpected challenges can occur. For example:
- Your income can take a temporary hit.
- You may fall unexpectedly ill and have to take a few months off work.
- Your job may be terminated due to downsizing.
- Your home may have a major plumbing or electrical problem.
When facing such financial challenges, it’s very reassuring to have a safety net that will protect your family in times of difficulty. That’s why it’s important to maintain at least 3-6 months of living expenses in a separate account.
Remember: This is not an emergency fund for a vacation or impromptu splurge. The reserve should be used ONLY in times of emergency. While this can be tough to maintain, you won’t regret the dedication during times of crises.
4. Pay Your Mortgage on Time
One of the simplest ways of maintaining your mortgage is by ensuring you make the payments on time. Late payments can rack up huge penalties and negatively impact your credit score. Even scarier? In some cases, late mortgage payments can even trigger foreclosure.
So avoid the worry of losing your home by always making your payments on time.
Call Today
To find out more about how our mortgage life insurance products can help protect your family home, and provide financial stability to your loved ones, contact one of our licensed agents at 1-844-974-2020 or fill in our online contact form.
