Keeping back-to-school on budget Signs that inflation cooled last month might be cold comfort for parents dragging their kids through the back-to-school routine. With August halfway through and inflation levels still at decades-highs, households are feeling the pressure to stay on budget even more this year. "I think everybody is watching their wallets a little bit more closely than they've had to in the past," says the Retail Council of Canada’s Michelle Wasylyshen. Personal finance and parent experts who spoke to Global News this week had a wide range of tips for keeping back-to-school affordable this year, ranging from planning ahead to waiting a bit longer for inventories to go on sale. Find out how to save on clothes, electronics and school supplies in this Global News story.  How to lower your phone bill One line item on the household budget in need of a trim could be your mobile phone bills. Expert Stephen Clark told Global News this week that back-to-school season is a prime time to find deals on wireless plans. He recommends doing a full audit of your past 12 months of data usage and breaking down how much you really need on a month-to-month basis. Once you’re “armed with that information,” you can often fit a plan that’s a better fit for a lower price, he says. But sometimes your longtime carrier isn’t willing to budge. That’s when you need to ramp up the pressure or jump to a new provider. Learn how to score a better deal on your monthly mobile bills in this Global News story.  Some neighbourhoods holding up to higher rates The narrative that the Bank of Canada’s rising interest rates are dragging down home prices and cooling off markets might be overblown in some parts of Greater Toronto and Vancouver, according to a new report from Re/Max. The real estate brokerage showed in a report this week that activity and average prices have held up and even increased in many detached markets within the two metropolises as interest rates rose between the first two quarters of the year. Realtors who spoke to Global News said this reflects most of what they’re seeing on the ground in this segment of the market. Toronto real estate agent Pritesh Parekh notes that for people buying multimillion-dollar homes in Toronto, they’re probably at a higher income level and are likely to be able to afford a bigger down payment and higher carrying costs on their mortgages. Some buyers are even seeing the dips in value in some detached markets as an opportunity to upgrade, he says, sustaining sales activity in the segment. "I am seeing those who were in the market for detached homes, they're taking this drop kind of seriously," Parekh says. Read more on detached home prices here. ________________________ – THE QUESTION – “I am a 52-year-old homeowner with a mortgage that has two more years to renewal time. There are 18 years left on the mortgage. I would like to think about retirement at 60-65. Should I take the money out of my HOOPP pension (approximately $160,000) as I go to another job (not HOOPP-eligible) and put it down on my mortgage (currently at $235,000) and then continue to invest in my pension with my current workplace? Or keep everything as is? Would it be more cost-saving to take the money out and do that in the long run?” — A Money123 reader “With two years left on your current mortgage, you likely have a great rate and would be advised to ride that out. If you haven’t reviewed your mortgage in the last year, I’d recommend calling a mortgage broker for a quick complimentary review. When you reach maturity, you’ll want to consider the rates offered before making any changes. As a general rule, if the borrowing rate on your mortgage is lower than the rate you are earning on your investments, you’ll be better off to stay mortgaged and leave your other investments to grow. A financial planner familiar with HOOPP pensions may be able to help you calculate the cost vs. benefit of cashing out your account early. It’s likely best to keep the pension to have more income when you retire. You may also want to remortgage before retirement to lower your payments and improve your cash flow.“ -Nicole Hayes, mortgage broker, www.bcmortgageexpert.com ___________________________ Want your money question answered by an expert? Get in touch! | 
No comments:
Post a Comment