5 Financial Benefits of Owning a Home for Millennials

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You want to make smart financial choices for your future, and you know that you are at a point in your life when some big decisions have to be made. Do those include buying a Waterloo Region home? Here are five big financial benefits that point to the answer being yes.

Tax breaks

As a homeowner, you may qualify for numerous tax benefits. These deductions can help offset other costs of homeownership. Potential deductions include the interest on your mortgage, property taxes, and home equity lines of credit

Stability

If you take out a fixed-rate mortgage, you’ll know what payments to expect for the life of the loan. Rent, on the other hand, often increases annually. When you own a home, you also typically have more control over expenses such as utilities, so you can make choices that encourage efficiency and save money each month.

Forced Savings

Each month, as you pay down your mortgage, you are adding equity. This can be an excellent way to build wealth. In the future, you can sell the home for a profit or borrow against the equity to obtain needed funds. Personal financial emergencies, college tuition, and home repairs or renovations are common uses for these funds.

Better Financial Health

A mortgage looks good on a credit report and can help you establish a healthy score. However carefully you use and pay off credit cards credit bureaus – and lenders – prefer to see a good mix of responsibly used credit and a mortgage loan will certainly help you demonstrate that.

As you faithfully pay off the mortgage loan, your credit score will increase. This can prove very helpful in obtaining lower insurance rates, not just for your home itself but for your vehicles and for the contents of your home. You will also usually find that it helps you in qualifying for lower rates on future large purchases.

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Final Payment

When you buy a Waterloo Region home, there will come a day when you no longer have to make your mortgage payment. It will eventually be your property, free and clear. (Time to celebrate!) This scenario is very different from paying rent, which will continue for a lifetime with nothing much to show for the investment.

Are you wondering if a Waterloo Region home purchase makes sense for your financial future? As a mortgage agent as well as a real estate agent Angelica will be happy to discuss these and other benefits and help you determine if now is a good time for you to pursue homeownership in our area.

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