Brokers can share these tips on managing mortgages.
The Bank of Canada’s recent decision to hike its benchmark rates might have left consumers even more pressured with ever-rising costs. Fortunately, brokers are ideally placed to help their clients manages their burgeoning debts and mortgage loads. For brokers with clients who are contemplating how to best take advantage of the increased rates or avoid falling into further debt, personal finance expert and Ryerson University business professor Laleh Samarbakhsh shared her advice in a recent interview with The Canadian Press. Samarbakhsh emphasized that before anything else, clients have to understand what kind of debt they have to start with. “We have good types of debt and bad types. Good types can include any investment that is made to contribute to progressing your future. For example, a student loan is a good type of loan because you are investing in your ability to make more money. At the same time, debt you have from real estate or your primary residence is considered a good type of debt because you’re accumulating equity,” Samarbakhsh explained. “Focus first on what is considered bad debt like credit card debt, lines of credit or any kind of debt with higher interest rates and no future investment. Pay off the debt with the higher interest rate first, but also consider what [debts are] tax deductible.”
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