10 financial challenges and opportunities for homebuyers and homeowners.

1. Mortgage approval: Do the math 

When seeking a mortgage, the best course of action is to carefully crunch the numbers; calculate how much you can realistically afford to borrow, and the required downpayment, before making an offer.

2. Ensure your income can support your obligations

Consider other expenses such as moving costs, property taxes, and maintenance fees. They can limit your disposable income and impact your lifestyle. Study your finances and be prepared to adjust your spending habits to pay your bills on time.

3. Prepare for a lengthy process

Buying a property or refinancing your existing home can take time, from application to approval and completion, so set realistic expectations. Prepare yourself for a potentially complex process that may take up to several months.

4. Save for essentials - and the unexpected

From closing costs and new furniture to temporary repairs and long-term renovations, consider any expected or hidden costs which might cause financial strain in the future. Whatever your financial circumstances, maintaining a healthy savings pot will always come in handy.

1. Review your budget

Review your spending and see if you can spend smarter. Perhaps you can save some money, giving you the financial flexibility to achieve your goal – whether that’s refinancing your mortgage or completing a house extension.

2. Plan for the unknown

Higher interest rates can make your monthly mortgage repayments unaffordable. Refinancing could lower your monthly bill, either by reducing the interest or extending the loan term. Be sure to consider the closing costs of mortgage refinancing when weighing your options.

3. Seek investment opportunities

Mortgage refinancing could release cash to buy an investment rental property. If your kids have flown the nest, why not sublet a bedroom or two? Or perhaps there’s an outbuilding you could turn into an Airbnb or short-term rental?

4. Focus on building equity

As you start making mortgage payments, your equity will begin to increase. Over time you will have created wealth and improved your financial security. It may be possible to leverage equity in your home for major renovations through a home equity loan.