Whether it’s a tickle in your throat or a newfound pain in your knee, an ounce of prevention is worth a pound of cure.
Which is to say don’t wait, act now and see your physician.
These same tenets apply to homeowners with upcoming mortgage renewals in a rising-rate environment – specifically newer homeowners who got their mortgages during the 2020/2021 low-mortgage rate era.
Enter Pemberton’s BlueShore Financial team, specifically certified financial planner and financial advisor Kelsey Phare and advisory associate Jordana Shier.
This is a pair of financial experts who’ve grown up in the Pemberton Valley, who regularly help their local clients navigate and achieve financial goals of any size and scope.
“You need to start planning now for what you may see in the future when your mortgage renewal comes up,” Phare says. “We call this the payment shock, so instead of waiting until the day it’s going to happen, look at it now, start planning and start making adjustments.”
These five tips will help you gain financial independence and stability both today and in the future.
Clients need to look at what potential rate changes may occur in the coming years and get familiar with them now in order to assess how those numbers may impact their mortgage payments.
“I usually review payment calculators with various higher interest rates – four, five or six per cent – to take away the payment shock and get a feel for what those rates might look like,” Phare explains. “That really helps clients get familiar with the future payment so they can prepare for it.”
Adjust on the fly
“I help clients look at whether there are any places they could make adjustments today to create additional cash flow now,” Shier says. “We’ll look at your current budget and assess additional income sources: you could rent out a room or another area of your property, consider part-time work options or sell items you no longer need.”
Start saving now
Phare and Shier help clients prepare for the future by focusing on today. For example, if your cash flow allows it, start tucking away $300 a month – this will prepare you for when payment amounts increase or help establish an emergency fund for the future. Interest-bearing options abound on this front: term deposits, GICs, or high-interest savings accounts.
Have a back-up plan
“If these options don’t apply to you, then you may be able to look at flexibility within the mortgage products that you have in order to reduce payments,” Phare says. “We can give you personalized expert advice for a financial strategy that’s right for you.”
Consult an expert
A financial plan shouldn’t be a one-time, one-size-fits-all solution. “No matter what life stage you’re in, we always recommend reaching out to an expert for advice. A financial advisor can help you develop an effective plan that is customized to your unique needs and goals, and can be adapted as your life changes over time,” says Shier.
BlueShore Financial’s Pemberton branch has been a long standing part of the community since 1998. With a commitment to helping clients achieve financial wellness, BlueShore offers a full range of personal and business banking services, as well as wealth management, insurance and commercial lending solutions.
“We’re not a typical big bank: we’re local, we know the area, we’re easy to deal with and we’re focused on building relationships,” Phare says. “We’ve always been about the people, and fostering financial wellness within our community.”
For more information and to find your local branch, visit www.blueshorefinancial.com.