Canadian housing mortgage rates are all over the map. Don’t get trapped in an unnecessarily costly mortgage agreement.
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Should you buy or rent in retirement? + MORE Aug 17th
(Pexels)
Q: I’m 57 and hoping to retire this fall. I will receive an OMERS defined benefit pension of $44,000 plus a $10,000 bridge until I turn 65. I have a $75,000 RRSP and $300,000 in cash. I have no debts and am a lifelong renter.
I would love some tax-efficient and potentially income pr.... More »
Q3 2016 Bank Earnings – Mortgage Morsels + MORE Sep 1st
Another bank earnings season has just wrapped up, giving us insight into how Canada’s Big 6 banks are monitoring and reacting to housing market risks, most notably runaway prices in Toronto and Vancouver. Here’s some of what we learned from Big Banks’ third-quarter reports: While credit ca.... More »
Mortgage risks fading thanks to higher rates, tougher rules, says Bank of Canada report Nov 15th
The lofty levels of household debt has been a key concern for the Bank of Canada as it gradually raises its trend-setting interest rate, which it has already hiked five times since the summer of 2017..... More »
Here’s how much a GST break could save first-time home buyers + MORE Jun 11th
The Liberal plan to give first-time home buyers a tax break on a newly built home could have substantial impacts on housing affordability—with a few caveats—a new analysis finds.
The Liberal government introduced legislation on June 5 to eliminate the GST portion from new home sales of up to .... More »
Mortgage expert alert: Will the Iran War and rising inflation offer a buying opportunity in 2026? + MORE Apr 9th
Escalating tensions in the Middle East have erupted into war between the US and Iran. Spiking oil prices from Strait of Hormuz blockages are already having an immediate, aggressive impact on your wallet, your household expenses, and crucially, your mortgage.
Historically, moments of extreme globa.... More »
Should I pay off a loan using my RRIF?
– moneysense.ca
Q: I’m retired and used a line of credit to do repairs on my house. Should I draw from my RRIF to pay it off or just keep paying down the line of credit gradually?
—Marlene Crew, via email
A: Math and mindset: This debt repayment question requires you look at both. For instance, does the outstanding debt from the line of credit keep you up at night? If it does, there is a greater benefit to paying it off in full. If you can still sleep without doing Nyquil shots, the math supports a plan to pay it off gradually. According to Allan Norman, a CFP with Atlantis Financial in Barrie, Ont., you should “draw enough to move your taxable income to just below the next marginal tax rate and use that money to pay down your line of credit.” Just avoid moving up to a new rate as you’ll pay more income tax and, at the same time, risk reducing the Guaranteed Income Supplement or other benefits you currently receive. One last thought: Shop around for the lowest rate on your line of credit. You can often lower the rate if you secure the loan against an asset, such as your house…
—Marlene Crew, via email
A: Math and mindset: This debt repayment question requires you look at both. For instance, does the outstanding debt from the line of credit keep you up at night? If it does, there is a greater benefit to paying it off in full. If you can still sleep without doing Nyquil shots, the math supports a plan to pay it off gradually. According to Allan Norman, a CFP with Atlantis Financial in Barrie, Ont., you should “draw enough to move your taxable income to just below the next marginal tax rate and use that money to pay down your line of credit.” Just avoid moving up to a new rate as you’ll pay more income tax and, at the same time, risk reducing the Guaranteed Income Supplement or other benefits you currently receive. One last thought: Shop around for the lowest rate on your line of credit. You can often lower the rate if you secure the loan against an asset, such as your house…
FCF Capital Buys 60% of DLC
– canadianmortgagetrends.com
When it comes to mortgage origination volume, the most successful brokerage operation in Canada—hands down—is Dominion Lending Centres (DLC). In 10 years the company has gone from zero to 5,000+ agents, 650 locations and more than 40% market share in the broker space. FCF Capital Inc. (FCF) saw that success and decided it wanted a piece of it. So it bought 60% of DLC for almost $74 million. That pegs the entire enterprise value of the company, if you include assumed debt, at roughly $139 million according to co-founder Gary Mauris. We spoke with Gary and FCF CEO Stephen Reid READ MORE
A line of credit is derailing my mortgage application
– moneysense.ca
In our April 2016 issue of MoneySense, we introduced you to Lindsay Tithecott, a 29-year-old who is trying to pay down debt, build up savings and buy a larger condo. Throughout the year we’ll be giving her a financial challenge every two weeks to help her get her finances in tip top shape. She’s already been challenged to cut her fitness expenses as well as to determine if she should prioritize debt-repayment over saving. Lindsay’s third challenge was all about condo-buying and the various aspects associated with that process.Challenge No. 3 — An update
Over the last couple of weeks, Lindsay has done some legwork and gone to a competitor bank to find out how large of a mortgage she’d need to purchase a two-bedroom condo in Kamloops, B.C. She’s also learned about the costs of CMHC mortgage insurance as well as large a mortgage she’d be eligible for.
Lindsay talked about her experience in the video below and then we had experts give her some clarification and advice…
