Posted by: Diane Alvernaz
Statistics Canada reports that student loan borrowers with post-secondary education are less likely to own their own home and have a significantly lower probability of savings/investments than non borrowers. (See the Jan 29, 2010 Study)
If you are still paying for your education after graduation, be sure to educate yourself on financing alternatives. You may be able to restructure your debt to invest in home ownership. Consider limiting the down payment on your home purchase to repay a non competitive student loan product. At the very least, review your existing student loans with an eye to engage a more lucrative structure:
Manage your debt wisely and you won’t pay more in the long run. Case in point, a client recently refinanced her existing mortgage to incorporate the balance on a $7,000 student loan; she had been paying $80 per month for more than 15 years and is still left with a balance of about $3,000. With the same monthly payment, that $7,000 could have been paid in full well within 10 years at prime mortgage rates!
You can control the impact that your student loan has on your overall net worth; take the time to investigate alternatives so you don’t become a borrower statistic.
Contact the Alvernaz team for a mortgage Pre Approval consultation today.