Why do my groceries cost more than last year?

The answer is inflation, and the Bank of Canada has been consistently raising interest rates to try to slow down inflation, but inflation continues to be an issue. Food prices have increased by over 11% from last year and Canadians are struggling to afford to feed their families. In addition, the raising interest rates are putting stress on a lot of Canadians with a variable rate mortgage, with some Canadians seeing their monthly payment increase by 100s if not 1000s of dollars! While it was my belief that the Bank of Canada would pause rate hikes in 2023, I am no longer confident it will happen.

Fixed mortgage rates have actually come down recently and we can hold a rate for up to 120 days. This means if there is another rate hike in the next 120 days, you can lock into the lower fixed rate we have held for you. It is a great option for anyone with a variable rate and can provide some peace of mind over the next 4 months!

If you would like to read more about inflation in Canada, check out this article.

https://dominionlending.ca/economic-insights/canadian-inflation-disappointingly-high-in-november

Does it feel like it’s too late to start investing? Don’t know where to start?

Good news, now is the best time to start! Investing money can be simple and the best part is you do not need a lot of money to start. A small contribution each month or each paycheck will compound into massive savings over time. Consistency over time will lead to life-changing results. As an added bonus, investing now while markets are down is an opportunity to earn higher returns on your investment when markets recover. Here are a few tips to get started:

1. Keep track of your spending and separate your expenses into needs and wants.

2. Determine how much money is required to cover your needs every month.

3. Look at your expenses related to wants and decide which of those things you would be willing to live without.

4. By choosing items we can live without each month, we now have money that can be invested.

5. Set up the investments to be made automatically from your account and consider the new investment as a needed expense.

Over time, as you start seeing your investments grow, you may find yourself wanting to save even more and some of those expenses related to wants are no longer important to you. That’s amazing! Invest the extra money and see your investments grow even faster.

Do you want access to the best lenders, with the best mortgage options?

Of course you do! Everyone wants to get the best rate with the best lenders available. Your credit score plays a key role in determining which lenders will offer you a mortgage, but there’s more to it than just a good credit score.

A good credit score is considered 680+. Your credit score is based on how much debt you have in relation to your credit limit, how many credit cards or tradelines you have, and your history paying back credit.

The 2-2-2 rule is a used by lenders along with a good credit score. Lenders like to see 2 forms of revolving credit like credit cards, lines of credit, or car loans with a limit of at least $2,000 and a clean history of paying off the credit cards for 2 years. It takes more than just having the credit cards active. The key to the 2-2-2 rule is to use the credit cards regularly, keep the balance below 30% of the overall limit and the most important thing is to pay off the cards in full every month.