Te Ara Ahunga Ora Retirement Commission’s Post

📊💰 Unlocking the Mystery of Total Debt Service (TDS) Ratio: Your Financial Compass in the Mortgage World 💼🏠 Ever heard of the Total Debt Service (TDS) ratio? It's like a financial compass lenders use to gauge your readiness for credit, especially in the mortgage realm. Let's break it down. Here's the math: Your TDS ratio is calculated by summing up all your debts (housing and non-housing) and dividing it by your gross income – what you earn before taxes. 📈💡 When we say housing costs, it's not just your mortgage. It includes everything from property taxes and homeowners insurance to association dues and utility bills. The non-housing component covers car loans, student debts, credit card payments, and more. 🏡💳 Different lenders have different rules, but for example, the Canada Mortgage and Housing Corporation (CMHC) suggests that your TDS ratio should ideally stay below 44%. It's all about ensuring you can manage your financial commitments without feeling overwhelmed. 💼🔍 So, when considering taking on more debt, especially for a mortgage, remember this little metric. It's the tool lenders use to ensure you don't bite off more than you can chew. 📊🔑 #TDSRatio #FinancialCompass #MortgageWorld #DebtManagement #CreditReadiness #FinancialLiteracy #PersonalFinanceTips #MortgageInsights #LinkedInFinance #SmartBorrowing 💡💼 📩 Ready to explore your mortgage options while staying financially savvy? Let's discuss how to leverage your TDS ratio to make informed decisions and secure your dream home! 💬🏠

The Financial Conduct Authority report on personal finances is encouraging. Their research shows that fewer people are struggling with repayments, however the cost of living is still impacting many customers. Lenders are fully committed to supporting customers and are ready to help anyone struggling to make their mortgage, credit card, overdraft, or personal loan repayments.   It is important to remember that support is available and if you’re struggling you should reach out to your lender as soon as possible. Having a conversation with your lender will not impact your credit score. There are a range of tailored options available to help and your lender will work with you to find the best option for your individual circumstances.

A recent article from ABC News highlights the alarming spike in debt hotline calls due to the rate hikes last year 📈. Many people are facing increased financial stress, especially those coming off fixed-rate mortgage terms and transitioning to higher variable rates. Managing this shift can be incredibly challenging, but there are ways to mitigate the impact. If you're struggling with rising rates or coming off a fixed rate, reach out 🤝. Together, we can find solutions to help you manage your mortgage more effectively and reduce financial stress. Stay strong 💪, and don't hesitate to reach out for support. Read the full article here: https://lnkd.in/gPmqS6XD

🏠📚 With soaring rates, mortgages are a hot topic in the UK. Do you think mortgages and financial literacy should be taught in schools? https://bit.ly/4dURjRm #mortgages #ukhousing #financialeducation

When is the right time to #refinance ? Some would say "when the mortgage #rates are lower". Many Americans have historically low rates on their #mortgage solution from years ago, however, they're feeling absolutely crushed by their #highrate credit card and auto loan debts. I'm always happy to provide a consult and knowledgable counsel to help determine if giving up a low rate mortgage to consolidate some debt could be beneficial or not. Please reach out for a no cost, no obligation, no judgement, discreet discussion around the topic! https://lnkd.in/gmzRuSPz #bradthemortgageguy #bradismylender #housemoney #equity #debtconsolidation #cashoutrefinance

What happens when a borrower experiences financial hardship and cannot make their mortgage repayments? We explored this in last week's referrer newsletter. You can read it here - https://loom.ly/O0eO0VU

June 5th marked the first rate drop in #Canada since March 2020! The #bankofcanadaannouncement is certainly great news, but the past 4 years have put families into a new level of #debt and #consciousspending. So now that money is less expensive to borrow...how does your #CreditScore look? How can you take steps to improve your score? And why do you even care about your score? I wrote this blog to provide insight on how to help strengthen your score, increase your buying power, and dig out of accumulated debt. Perhaps you, or someone you know is looking for some guidance. Remember, this is your money. Let's make it work for you! #Mortgage #CreditScore #CreditScoreTips #vancouverislandrealestate #vancouverisland #vancouverrealestate #maxxaminsurance

The festive season is behind us, and many Australians are now facing the post-Christmas debt hangover. According to a survey by Finder, 38% of Australians have racked up Christmas debt. Fifteen percent estimate it will take between one and five months to pay it off, and 3% say they’ll need six to 12 months to settle the debt. If you’ve ever found yourself tied up in Christmas debt and struggling to make your monthly repayments, then it’s likely your credit score took a dive as a result. And, regrettably, that’s probably affecting your ability to secure other types of credit, like a home loan. If you’ve managed to get on top of your debt, then access to a home loan, even with a less-than-stellar credit score, is possible with Direct Credit Home Loans. Ask us about our credit-impaired home loans. Real people, not AI bots or computer algorithms, assess every loan application, taking the full picture into account, not just credit scores. #homeloans #mortgages #debt ------------------------ We’d like to help you buy a property. Call us on (07) 3726 1124 or email scenarios@directcredit.com.au to discuss your scenario directly with our credit team.

Are you letting high-interest credit card debt hold you back from financial freedom? With the average credit card rate hovering around 28.46%, many families are feeling the weight of this burden. It’s no wonder that people are hesitant to let go of those low mortgage rates they secured a few years ago. But what if I told you that your home’s equity could be the key to breaking free from that cycle of debt? Mortgage rates have remained relatively stable lately, but they’re still higher than what we saw 3 to 5 years ago. This means that while your mortgage might feel like a secure anchor, the rising tide of high-interest debt is only getting stronger. The good news? Your home’s equity is growing, and it’s time to consider how you can leverage that hard-earned asset. A cash-out refinance can be a smart move. By tapping into your home’s equity, you can eliminate those pesky high credit card payments and consolidate your debt into a more manageable mortgage payment. It’s a strategy that not only simplifies your finances but also positions you for long-term success. Don’t let fear of change keep you from making a decision that could significantly improve your financial situation. High-interest debt will continue to rise, but so will the equity in your home. Why not use that equity to pave the way to a brighter financial future? If you found this insight helpful, give it a like or share your thoughts in the comments below. And if you think someone else could benefit from this information, feel free to repost! You can DM me with a personal message as well. #Refinance #Debt #Equity

Let’s explore how making a small extra payment can significantly reduce your overall debt. By adding $1,116.98 to your mortgage payment, you could save $5,000 in interest and eliminate several future payments. This is a smart strategy because instead of focusing solely on monthly payments, you’re targeting the real cost—interest. Small, extra payments applied directly to the principal can drastically reduce how much you pay over the life of the loan. Now, imagine purchasing a second property for $250,000 with a 4% mortgage and renting it out for $1,800 per month. The rental income not only covers the mortgage but also helps pay down your existing debt faster. By doing this, you could pay off both properties in 10.3 years, instead of the 30 years typical for a mortgage. In the process, you’ll save nearly $300,000 in interest. This shows how using additional income sources, like rental properties, can help you achieve financial freedom sooner. Once your debts are paid off, the money you would have spent on interest can start working for you. Even at a modest 1% return, you could grow your wealth to over $1 million in 18 years. This demonstrates the power of smart debt management—by cutting down on interest costs and redirecting savings into investments, you can significantly accelerate wealth accumulation and improve your financial future. Get a FREE Savings & Earnings Report! https://bit.ly/3QqmPx5 Watch & Subscribe to the PILL Method Youtube Channel! https://bit.ly/4aRITIy #Dondaniel #PILLmethod #InterestCancellation #PayOfYourMortgage3to5years #PayOffStudentLoansFaster #ABetterWayToEliminateDebt #OptimizedBudgeting #DebtFreeLiving