Things are harder than ever for homeowning Canadians. While Canada is still a prosperous nation the average homeowner’s quality of life has dropped significantly from how it was just five years ago; in the recent past Canadians had a lot more disposable income than they do now. Economists are saying that things are only going to get worse. Therefore, if you are a homeowner (even if you are not currently feeling the pinch) educating yourself about the challenges you face can help you to prepare yourself. This post will explore this topic in much greater detail by telling you about the top six challenges you face as a Canadian homeowner:
Rising Interest Rates
Right now interest rates in Canada are rising. Property owners on variable mortgages are suffering due to Canada’s interest rate rises. Holders of fixed mortgages however are not feeling the pinch. It should be noted that interest rates are predicted to fall in the coming years if the nation’s inflation goes down. With global inflation rising however economists are unsure whether things will get better or not. If you are on a variable mortgage then you might want to get in touch with your provider and ask them if you can switch to a fixed one, locking in your rates. With rates expected to rise, locking them in now could be the best thing for you and your family.
Inflation isn’t just a problem for Canadians; it is a global problem. If global inflation continues to rise then it’s likely that Canada’s will too. The problem with inflation is that it makes everything a lot more expensive; interest rates tend to rise along with inflation. Interest rates aren’t the only thing that goes up, the cost of food does as well. Homeowners do not only need to think about repayments to their mortgage provider they also have to think about feeding themselves and their families. If individuals are unable to feed their families due to inflation then they will likely end up losing their houses as they will prioritize food over shelter.
An issue facing a lot of Canadians completely unrelated to the nation’s economy is the fact that many homes are completely uninsurable. Insurance companies are refusing more insurance applications than ever in the nation’s history. Experts say this is in part due to global warming. Because Canada’s weather is becoming more unpredictable there are more floods and adverse weather events. Houses situated in flood- or disaster-prone areas are having their insurance policies taken back. Policy prices are increasing for people whose policies cannot be rescinded.
Cost of Living
All over the world, cost of living prices are rising; many Canadian property owners are finding themselves unable to afford to pay for basic essentials like food. If you are one such individual and are being affected by the cost of living crisis then consider reaching out to an aid organization; in most of Canada’s large cities and towns, there are organizations that distribute food to the poor and destitute. These organizations are called ‘food banks’ and feed anyone as long as they are truly in need and aren’t just selfishly trying to save money. You can sign up for food banks in person or online.
Energy bills are rising due to the conflict currently going on in Europe. As Russia is one of the world’s largest gas suppliers it has decided to increase its prices and charge people more for gas than ever before. If you are suffering due to rising energy costs then you may want to consider switching to a more sustainable form. An alternative to sustainable energy is to significantly reduce the amount that you use at home; reducing the amount of energy you use at home will help you to cut down on the costs of your bills and save money. The setup costs of sustainable energy can be extremely expensive but in the long-term living sustainably will save you a fortune.
Other expenses need to be factored into the average Canadian homeowner’s budget too. Food, energy and mortgage repayments are important but so too are fuel costs. In addition to fuelling their vehicles, Canadians have to think about buying themselves clothes. Every so often you need to replace your clothes and buy new ones. If you do not factor these costs into your budget when the time comes to make these purchases you won’t be able to. A good way of saving money on clothes is buying them used; you can get great deals on used clothing online.
Canada is a great place to live although it’s becoming very expensive; if you live there or if you want to, learning about daily living costs will help you to set yourself up for success. Moving there without researching living costs can lead to you getting yourself into a situation you aren’t able to easily get out of.