Three Tips To Save For A Down Payment

Saving for a down payment can be daunting for first-time home buyers, but breaking it down into small steps can make the process less daunting. A home is a great investment, and there are many ways to save for this big purchase.

 A potential home buyer should try to save 5-20% of the value of the home. Here are some helpful tips for saving for your dream home.

    1. Let Your Money Grow

Hold your savings in a fund where they can accumulate the highest possible amount of interest. Good examples of accounts include:

        Canadian Tax Free Savings Account (TFSA)
        Guaranteed Investment Certificate (GIC)
        Mutual Funds
        RRSP
        High Interest Savings Account

    2. Pay off Existing Debt

It’s hard for your money to grow when you owe–and are paying interest. In fact, those who have too much consumer debt will not qualify for a mortgage. Before starting to save for a down payment, address existing debt. If you feel overwhelmed by this project, just take it slow.

    3. Downsize

Examine your current lifestyle to see if there are any areas in your life where you can downsize or cutback. Not only can this help you save for a down payment, it can also help you pay off existing debt and not accumulate more.


    Look where you’re spending your money. Are you:

        Going out a lot?
        Buying pricey new clothes every season?
        Indulging in expensive vacations?
        Buying all the latest technology?


Once you identify where you are overspending, try to put yourself on a budget. Even small compromises in your lifestyle can have a snowball effect, and accelerate your saving process. For instance:

Eating out a lot? Going out to restaurants can become very expensive. Perhaps you go out for dinner once a week. Try cooking at home and cutting back to just going out once a month.
       
Shopping too much? Take stock of what you already have, and only spend money on things you absolutely need. Maybe you really want a new spring jacket, but if you already have a perfectly good one, that money should be going to your savings.
       
Pricey vacations? Look for getaways that are closer to home, or keep an eye out for cheap flights and trip deals.


When it comes to saving money, the little things really make a difference. It may seem like a sacrifice, but it is one that will pay off down the road. There are many ways to be creative when it comes to saving money, and once you find the way that’s right for you, you’ll be well on your way to becoming a homeowner!

source: northwoodmortgage.com

Tips On How To Plan For Your Closing Costs

When you know that you are going to apply for a mortgage, it is best to begin saving for the closing costs. On average, closing costs cost anywhere from $2,500 to $6,000. These costs vary by location and other matters that also affect the rate. Fortunately, closing costs are usually the only upfront cash payment that usually needs to be made when a mortgage loan is cleared.

What Are Closing Costs For?

Closing costs are the fees due in order to close out a real estate transaction. When the title is transferred over to the soon-to-be-new home owner, the closing costs are then due. Closing costs are usually determined between the real estate agents whom are capable of wheeling and dealing at the cost in which you will ultimately be required to pay.

Considering that closing costs are almost never optional, it is best to assume that you will need to pay anywhere from 2% to 5% of the cost of the mortgage loan in closing fees. In some cases, you may be able to have the closing costs wrapped into the mortgage, but this isn’t common.

Closing costs cover lender’s fees, service costs, escrow, and settlement services, among other small fees. Basically it covers the costs of services for anyone involved with the transaction. It’s important that you prepare yourself as necessary to pay these costs as soon as they are due.

Begin saving money for the closing costs as soon as you learn that you were accepted by the mortgage lender. This should give you plenty of time to save up the thousands of dollars needed, unless you are in a hurry to make a deal on a property. Either way, save a little money out of every paycheck to cover the closing costs when they arise.

Other than the closing costs being due at the end of the transaction, you may also need a hefty down payment to put on a property. Make sure you consider all of these fees associated with a mortgage loan and save whatever it is that you need. It’s always safe to save about 25% to 30% of the mortgage loan to pay out in cash fees for closing costs and the down payment combined. Saving that much should be more than enough to cover all the costs.

For more information on closing costs, talk to Northwood Mortgage today!

source: northwoodmortgage.com

Saving money on your personal injury claim

If you have suffered a personal injury that was not your fault, then making a personal injury claim could be a wise move, especially if the injury has left you struggling financially.

There are a number of companies offering to help people to effectively make such claims meaning that, if you want to make a personal injury claim, you will have to think very carefully about which company you should turn to in order to save as much money as possible during the personal injury claims process. Thankfully, this post can help you to do just that.

• Use an online compensation calculator – Before you even start making a personal injury claim, you can see how much money you could gain through a successful claim by using an online tool that cites possible compensation amounts for different body parts.
• Get free claiming advice – You don’t necessarily have to pay for reliable advice on making a personal injury claim, as some solicitors’ firms offer it freely over the phone. They can provide tailored advice after you ask them a question and they consider your case.
• Choose a personal injury compensation solicitor – Avoid using the services of a solicitor with generic legal experience. Instead, to save money, you should opt for the services of a solicitor with specialist experience in helping people to make personal injury claims.
• Choose a direct claim solicitor – Whenever possible, opt for the services of a direct claim solicitor, as they will not have to pay insurers, brokers and accident management companies and so can pass on savings to you.
• Choose a solicitor who can offer cash alongside compensation – You should consider one of the solicitors who offer cash along compensation to clients they have won cases for. Such solicitors are able to do this by cutting out middlemen.
• Choose a solicitor with considerable experience – Choosing a solicitor with at least five years’ experience should increase your claim’s likelihood of success.

source: bripblap.com

5 Tips to Save on Baby Clothes

Research shows that it takes around $200,000 to bring up an 18 year old from birth. When resources are limited and the necessities such as education, health, etc, cost a lot, you have to cut down on avoidable expenses. Smartly clothing your baby can help you cut costs significantly. Try following some of the tips below. [Also See: What It Really Costs to Raise a Child]

Size Smartly

Shorter clothes might look cute and even chic on little toddlers but they don’t last long. Try buying sizes that you think will last longer. Also prefer clothes with elastics at the waist instead of belts. Add buttons or hooks in a horizontal row to belts if possible. As your baby puts on weight, the consecutive buttons or hooks can be hooked.

Color with Care

Needless to mention, select colors for tops and bottoms in a way that maximizes the number of combinations you could create. This is especially relevant for those who go frequently for outings with friends and family. Go for basic colors such as red, blue, yellow and green more often than other uncommon colors which might not fare well with other uncommon colors.

Be Cautious about Quality

There are times when you forget all the lessons learned from purchasing cheap clothing earlier. And then you re-learn those lessons when a disaster happens after you put those cheap clothes in the washing machine. Also, always look carefully for instructions at the back that explain how that clothing may be washed and ironed.

Material Matters

Choose materials that are more stretchable. They would be able to take care of your baby’s growth spurts. Also, choose materials that can be worn more even when seasons change. For example, instead of buying very warm sleeping suits buy a relatively less warm collection of suits. As the coldest of days approach, slip in warmer vests. This way the suits will be able to be in use for a longer while.

Style Slyly

Certain styles such as frocks, dresses and skirts for girls and overalls for boys last longer. Prefer such smart styles that your baby can wear for a longer period. Buy socks without heels so that they can be used for a longer time. And remember you can alter clothes creatively too. When sleeping suits start becoming a bit tight, cut off the portion covering the feet. That should make it last a couple of months more because your baby grows more vertically than horizontally.

source: financialhighway.com