Rick Howe: Talking about Financial Literacy Month

Talking a bit more about Financial Literacy Month!

First time? Don’t feel like listening? Check out the audio transcript below.

This is a five-minute business builder with Rick Howe, where your business comes first, on News 95.7.

Talking about the Halifax Market

Rick Howe: [00:00:08] And from time to time, we welcome members of the business community to our studios. And back with us this afternoon is Senior Mortgage Adviser Clinton Wilkins. Good afternoon, Clinton.

Clinton Wilkins: [00:00:17] Thanks for having me, Rick.

Rick Howe: [00:00:18] Well, thank you for joining us here again today. What are we going to talk about today?

Clinton Wilkins: [00:00:22] Well, happy Halloween! It is a financial literacy month starting tomorrow.

Rick Howe: [00:00:25] Scary costume to wear there Clinton!

Financial Literacy Month starts tomorrow!

Clinton Wilkins: [00:00:27] I know, very scary, all in black today, and we had a little Ghostbusters. But, you know, finances are not something that you should be scared about. I think it’s sometimes it’s a taboo subject to talk about your income and your assets and your credit. But I think going into financial literacy month, it’s so important. You know, we’re getting near the end of the year and the holiday season is really just right around the corner. And I think November is a great time to have a look at your whole financial picture.

Rick Howe: [00:00:54] When you say financial literacy, what do you mean by that?

Clinton Wilkins: [00:00:58] Well, I think it’s sometimes important just to educate yourself. I think that you know, there are so many things that can happen in someone’s life, you know, around their income and around their assets and around their credit that I think just print being aware and having the conversations and doing your homework and seeking unbiased advice is just so important. And I think November is a good time to look at that.

Everyone’s financial situation is different

Rick Howe: [00:01:18] One of the big issues with everybody’s financial situation is their debt load. Right. And that plays an important role as well into their home buying aspect.

Clinton Wilkins: [00:01:25] One hundred percent. And I think that you know, having a look at that is really important, and the mortgage is one of the biggest debts of your life. Buying a home is one of the biggest purchases. And I think coming to an unbiased mortgage professional like me is so important throughout that process. And I think even if you already own a home, having a look in the mirror and having a look at those, you know your finances, November is a good time because everybody wants to go into the new year in the best possible financial shape that they can be in.

Rick Howe: [00:01:54] And that’s not always an easy task. However, especially as we come to Christmas time. And you know that tendency we have at times to get a little splurge at Christmas time and rack up some debts and all. But. But again, you know, the important part, especially when it comes to home buying, is to have a pretty good financial picture and to not being, you know, overloaded with that.

Affording the home you are buying

Clinton Wilkins: [00:02:12] Exactly, You want to know that you can afford the home that you’re going to buy. And even if you own a home already, you want to know that you can still afford it going into the future and you can pay down your debt. So I think looking at things like what is your unsecured debt load like, how much do you owe on credit cards, on lines of credit, on loans is important. And that all needs to be factored in.

You know, no one wants to sit in a house that they can afford technically on paper, but they can’t furnish it. And who wants to sit at home eating Kraft dinner all the time? I love Kraft dinner personally, and when I was on a couple weekends ago with Todd I said I love Burger King, but these are not things that they say you want to do all the time. You want to know that you can still afford your life, you can still save and you can still pay down your debt.

It’s all about income, assets, and credit

So I think looking at those things and looking at those three cornerstones, you know, the assets, the income, and the credit, November is a really good time. And, you know, these are things that we’re going to talk about all of November. And I think we’re going to really try to drill down on some of these specific subjects.

Rick Howe: [00:03:06] You’ll be on with Todd this weekend?

Clinton Wilkins: [00:03:08] I’ll be on with Todd, and we’re certainly going to open up the lines and people can call in and, you know, ask any other questions. We’re kind of going to have a broad overview here this first week. I’m going to be back every week in November and we’ll drill down and we’ll talk about assets one week. We’ll talk about credit one week and then we’ll talk about income.

You know, these are really the three things that we look at when we’re talking about mortgage lending. And it doesn’t matter if you’re buying a home or if you’re renewing your mortgage or if you’re doing a refinance. All of those things really come into play. And I think that there are taboos in every one of those subjects. And I think just, you know, opening up those lines of communication and really looking at those different resources is so, so important.

Talking about the Halifax market

Rick Howe: [00:03:45] We’ve got about a minute left here. And we mentioned last time you were here you talked to us about the housing market within HRM here and how hot things were. Is that still the case here? Doesn’t it typically kind of calm down a bit, slow down during the winter months?

Clinton Wilkins: [00:03:59] I think going into the winter, it can be a slower time. Typically, when, you know, we’re busy now until about the middle of December, some of the challenges around HRM is the inventory because the inventory has been low. So I think that comes into play. But starting tomorrow, the federal government’s program is starting. So basically, we were taking applications from September onward, but the actual closings can start happening starting November 1st. That’s their equity program.

First time home buyers

So if a first-time home buyer were to buy a new home, new construction, the government would kick in an additional 10 percent basically as a down payment or they would own 10 percent of the home. And on a resale property, they’ll get 5 percent. So applications that can now start closing as of November 1st, is starting right away. So I think it’s definitely something to think about. And I think if you’re going to be a first-time homebuyer, taking advantage of the program or at least educating yourself on the program is so, so important.

Rick Howe: [00:04:57] You’re on with Todd Saturday morning?

Clinton Wilkins: [00:04:58] We’re going to be on Saturday. Morning, so feel free to tune in and we’d love to have your calls. We’re answering calls live on the air so we can certainly talk about things that are related to financial literacy with November. And if you want to drill down on any of those specific topics on income, assets or credit, certainly give us a call.

Rick Howe: [00:05:15] All right. That is senior mortgage adviser Clinton Wilkins.

If you have any questions about Homeownership or what that means for your situation, get in touch with us here.