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Thursday, 23 August 2012

Financial tips for recent graduates

After completing the years of schooling it takes to get a diploma, and a job, many recent graduates fall into a heavy spending pattern, simply because they have never been able to do so previously. However, in an age of rising home prices, it has never been more important to start out on a well-planned financial track. This article from the Financial Post provides helpful tips for recent graduates.

The most recently released national average home price sits at $353,147, according to the Canadian Real Estate Association. With recent mortgage regulation changes, if an applicant wishes to amortize their mortgage over more than 25 years, a down payment of 20% or more (almost $71,000) must be accumulated. This combined with the other benefits of a larger down payment, such as paying less overall interest on your mortgage, make saving early vitally important. Making a detailed budget should be the first step in the process, as budgeting is often new territory for those just starting out in the work force. The article also suggests researching how to get the best possible return on accumulated savings, as not all savings accounts are created equal.

Saving for a down payment may seem like a daunting task, but the long-term benefits are well worth the time and effort involved. For more information on purchasing a first home, contact a qualified Mortgage Broker.

Click here for the full article from the Financial Post.

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