Mortgages in Canada can be a murky subject – one that we hope to shed some light on with a series of highly informational articles.
Latest News
Mortgage borrowers renewing in 2025 to face an average $513 monthly payment increase: RBC + MORE Dec 6th
RBC also reported a sharp drop in remaining amortization periods thanks to Bank of Canada rate cuts in the fourth quarter..... More »
Rate Hike Expectations Grow, But How Long Will Higher Rates Last? + MORE Apr 10th
As fixed mortgage rates continued to rise last week, variable-rate holders are expected to see their own increase next week..... More »
Equitable Casts Giant Reverse Mortgage Lure for Brokers Oct 22nd
What do you do when your competition has a 32-year head start? If you’re Equitable Bank, you pay brokers 150% more than normal. That’s the surprising move Equitable has made to build momentum in its reverse mortgage business. This degree of compensation is virtually unprecedented in this sector..... More »
Scotiabank to buy small Dallas bank in mortgage-finance play + MORE May 30th
Scotiabank agreed to acquire Maple Financial Holdings Inc., which owns a small U.S. commercial bank, as the Canadian firm looks to expand its structured-finance business in the American mortgage industry. .... More »
Should you get a fixed or variable-rate mortgage? Why the usual advice may no longer apply Mar 17th
After more than a decade of variable rates coming out on top, experts say fixed mortgage rates may have hit bottom and are already starting to climb..... More »
Using pension money to pay down debt
– moneysense.ca
Q: My husband is 65 and will soon be “paid off” to retire. The reason he’s still working is because we still have a sizable credit line debt of $50,000. (no mortgage or credit card debt). My husband will have a healthy DC pension that could pay us about $25,000 a year if we buy an annuity. As all the experts say you shouldn’t retire with debt, I was thinking of taking out the amount we owe from my small private pension and paying off the debt. I know that I will be hit with taxes but at least we will be debt-free. What is your opinion on this?
— Judy M.
A: Paying off debt is an effective part of your overall retirement readiness although it doesn’t have to be absolute. In today’s low-interest environment, servicing debt is quite cheap so paying extra tax unnecessarily may be more expensive than the debt interest payments.
Start by ensuring you are paying the lowest interest rate available. Taking out a Home Equity Line of Credit (HELOC) will reduce your interest rate to 3…
— Judy M.
A: Paying off debt is an effective part of your overall retirement readiness although it doesn’t have to be absolute. In today’s low-interest environment, servicing debt is quite cheap so paying extra tax unnecessarily may be more expensive than the debt interest payments.
Start by ensuring you are paying the lowest interest rate available. Taking out a Home Equity Line of Credit (HELOC) will reduce your interest rate to 3…
Turning investment income into mortgage payments
– moneysense.ca
Q: I have a mortgage of $120,000 with an interest rate of 2.25% variable.
I have some monies which I move around depending on the interest I get with the bank.
My income is $48,000.
I have some monies in TFSA. With these monies, I could pay off half my mortgage.
Should I pay off my mortgage partly or continue as is?
—Jane
A: The question of whether to pay down your mortgage or invest is an age old one in Canadian personal finance lore, Jane. There are varying opinions. Some people even suggest borrowing to invest à la “Smith Manoeuvre.”
I’m generally not a big fan of borrowing to invest, as I feel most investors don’t have the temperament, patience or risk tolerance to ensure it is worthwhile. Often those who borrow to invest are convinced to do so by mutual fund salespeople and the high fees on their investments negate much or all of the potential benefit anyway.
Ask a Planner: Leave your question for Jason Heath »
The thing is, Jane, you are indirectly borrowing to invest right now…
Efforts to cool housing market sparked drop in CMHC insurance
– theglobeandmail.com
Canada Mortgage and Housing Corp. says total insured volumes fell 41 per cent in the first quarter
