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As 2022 comes to a close, many Canadians are wondering what outlook for managing personal finances, mortgages, and tax planning is in store for 2023.



According to sources from the Desjardins Financial Group, the following considerations should be top of mind for homeowners and home buyers when planning for 2023.


Learn to Navigate A turbulent Market

2023 is expected to be turbulent due to dragging inflation and the correlating negative impact to buying power, declining investment value from continued market volatility, and higher borrowing costs due to higher interest rates. 

To manage this, it is recommended to review and establish your budget before any big decisions such as taking out or renewing a mortgage. Factor in much higher borrowing costs and consult a financial advisor to determine the best options for your budget, such as whether to choose a fixed or variable rate and the term of your loan. 


See the below table to illustrate the impact of higher borrowing costs on a mortgage:



Buying a Home 

The Federal Government has several programs available for first-time homebuyers to promote buying a home regardless of home selling prices and interest rates. 


TFSA and RRSP: Rules To Follow

A fantastic way to maximize tax deductions is to make additional RRSP contributions for 2022. Also, any contribution made in the first 60 days of 2023 can be applied to either 2022 or 2023. However, if planning to withdraw from an RRSP, it is advised to take it out by the end of 2022. There would be hefty penalties if you make a withdrawal and also large contributions to your TFSA in 2023. Lastly, the TFSA contribution limit, currently $6,000 per year, is expected to increase in 2023, giving more opportunities to maximize deductions.


Take Advantage Of Tax Credits For Families!

Tax legislation provided at both federal and provincial levels will provide multiple tax credit and deduction opportunities for families, child care, and caregivers. Check out The Government of Canada’s webpage and external pages for each province of the type of credits/deductions available. Please note: to claim deductions and credits on income tax returns filed in 2023, the situations and expenditures that qualify must have been carried out in 2022. 


With almost 15 years of experience, Sue Heddle Homes has what it takes to help you find your ideal home and location. From sharing key information about specific areas to knowing how to negotiate the best price, Sue is the only experienced realtor you need. If you’re thinking of starting your home search, give us a call at 416-906-7998, and let’s talk.
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How to Manage Current Interest Rates To Buy Your Dream Home

The current direction of The Bank of Canada (BoC) to continually raise interest rates to curb record-high inflation has caused a lot of anxiety across Canada as to how to manage not just day-to-day expenses but the cost of home ownership.


Is there a silver lining within this “interest rate storm?”


Even though interest rates are high, this also means that property prices are and continue to be moving lower than peak levels from a year ago. This translates into a great opportunity for Canadians who were priced out during the peak period.

To take advantage of this, the following information for would-be-buyers is key to think about before buying:

1. Secure the rate insurance of a pre-approval. This can save a potential homeowner the heartache of not having one. Securing a mortgage that fits your budget is critical to saving interest costs over a mortgage life span.

2. Remember, choosing a lengthy fixed-rate mortgage to secure a consistent payment schedule over the long term is ultimately locking into the current peak rate. There are significant payment penalties if a homeowner tries to break that mortgage arrangement. When rates drop, fixed-rate owners will have little choice but to continue paying that high rate.

3. However, a variable interest rate is not always the best solution in turbulent times. Consider a short-term fixed rate of a 2 or 3-year commitment to managing short-term volatility. Having an opportunity to reassess market conditions in this type of market could potentially save a homeowner thousands over the life of a mortgage.

4. No two lenders have the exact same policies! Make sure to fully investigate that the lender chosen has fair and consistent policies before committing to a mortgage lender. For instance, is there an option to break the mortgage at a cost that is reasonable to maximize cost savings? When in doubt, ALWAYS ask for an explanation of the details before signing.
 

Above all else, talk to an expert that you can trust. If you are thinking of buying a home, Sue Heddle Homes can help. At Sue Heddle Homes, our commitment to our clients is unparalleled. We are dedicated to helping you find the best home for your needs, for the best price. Ready to get started? Give us a call at 416-906-7998.

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Why Fall Is the Perfect Time to List Your Home

The warm and sunny days of summer are slowly coming to an end. The change of seasons will soon be here and perhaps that has you thinking of changes as well. If you’re at all considering selling your Oakville home this fall but aren’t sure it’s the right time, think again. 


While the spring season tends to be known as an ideal time to list, there’s no doubt that fall is also a great time to get your home on the market. There are many key advantages to selling your home during the fall season and Sue Heddle Homes is the team you need to help you navigate the current market.

5 Reasons to List Your Home This Fall

Having the right real estate agent will make a significant difference when it comes to finding success. While the fall market can be a great time to sell, you still need to work with someone that has experience in your location and knows how to attracts buyers.


If you’re still not sure that the upcoming fall season can work for you, let’s take a look at five advantages home sellers have during this time period.


1. Still an active market.


Things do tend to slow down over the summer, but the number of people looking for homes starts to increase as we head into fall. This is great news for home sellers as there are typically a lower number of homes for sale in the fall which helps to put sellers in the driver’s seat. Low inventory, which is a great thing for sellers, will help your listing get more interest.


2. Another predicted interest rate hike.


The Bank of Canada is predicted to announce another interest rate hike in early September. Buyers with pre-approval will be very motivated to act fast and make a purchase before the pre-approval period expires. Overall, fall months typically bring more serious buyers who are very interested in closing on a new home before year end. This can result in fewer, but more serious showings that lead to offers.


3. Shorter transaction times.


Since the fall season isn’t as busy as spring, you can expect a quicker turnaround time when it comes to mortgage lenders, lawyers, and home inspectors. This can result in quicker and smoother transactions as well as a quicker closing period, all of which can result in less stress for sellers. 


4. A visually appealing time to sell.


Beautiful fall foliage is hard to resist! Embracing all that the fall season has to offer can help you present your home in the best way possible. Adding seasonal décor inside and out is a great way to help a buyer enjoying family time, like Thanksgiving and Christmas, in their new home.


5. Moving can be done by the holidays.


There are many buyers who want to start the new year in their new home. Listing in the fall offers plenty of time for sales to be processed before the end of the year. It also gives sellers a chance to be settled into their new space and start their next chapter.

Sell Your Home This Fall with Sue Heddle Homes 

As you can see, fall is a great time to list your Oakville home! Now’s the time to get your home ready to sell so that you can take advantage of the opportunities the fall months can bring. With more than a decade of helping clients with their real estate needs, Sue Heddle Homes knows what it takes to help you facilitate a successful sale. Please reach out for a free home evaluation and to discuss working together. 

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