Canadian housing mortgage rates are all over the map. Don’t get trapped in an unnecessarily costly mortgage agreement.
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When does it make sense to sell real estate in a larger city and buy in a smaller one? May 31st
Q. I am currently living in Saint John, NB, and renting ($1,450 a month + Internet—very expensive for this little town). I also own a condo in Burlington, Ont., worth about $500,000, which I have been renting out for the past two years. With income taxes factored in, the rent just covers carrying .... More »
Latest in Mortgage News: Big Banks Lowering their 5-year Fixed Rates Sep 20th
CIBC became the second Big 6 bank to cut its 5-year fixed mortgage rate today..... More »
Do you pay capital gains tax when separating or divorcing? + MORE Jan 25th
I just read your article on paying capital gains on a property inherited from a spouse when there was no official separation agreement in place. Interesting, and I have a related question. If spouses separate with an official separation agreement but keep the matrimonial home and mortgage in both na.... More »
Managing debt to build wealth + MORE Aug 23rd
It’s an eyebrow-raising trend: non-mortgage delinquencies have reached levels not seen since 2009, according to a report by Equifax, one of the three largest consumer credit reporting agencies. Specifically, 1.4 million people in Canada have recently missed a credit payment.
But it’s no.... More »
“Should we refinance our mortgage?” Nov 19th
Q. We’re thinking about breaking our existing home mortgage to take advantage of the low interest rates we’re seeing now, and would appreciate some guidance. This is our scenario:
Mortgage principal: $572,000
Weekly payments: $746.00
Interest rate: 3.78% fixed and locked in until December 2023.... More »
Good debt and Bad debt…. do we Canadians recognize the difference?
– canadamortgagenews.ca
I saw this article from earlier this year about Good debt and Bad debt. Canadian Personal debt levels have now surpassed $2.21 trillion. That’s a big number, should we be concerned? I started to wonder how much of this is Bad debt? Let’s take a closer look at these stats.
First, let’s define Good debt. I agree with the article, to me, it’s debt that is used to accumulate an investment or asset and if it’s an investment then you may be able to deduct the interest costs from your income, making it tax-deductible. Investments like a rental property, stocks, bonds, etc would qualify. Borrowing to invest in a rental property is good debt and you can deduct the mortgage interest and other property-related costs from the rental income.
Bad debt is an expense where the interest is not tax-deductible and is used to purchase consumer goods. Things like borrowing for a vacation, a 60″ TV, that new computer, or leather sofa, etc. Hey, we all spend some money on these items, the key is to have some discipline…
First, let’s define Good debt. I agree with the article, to me, it’s debt that is used to accumulate an investment or asset and if it’s an investment then you may be able to deduct the interest costs from your income, making it tax-deductible. Investments like a rental property, stocks, bonds, etc would qualify. Borrowing to invest in a rental property is good debt and you can deduct the mortgage interest and other property-related costs from the rental income.
Bad debt is an expense where the interest is not tax-deductible and is used to purchase consumer goods. Things like borrowing for a vacation, a 60″ TV, that new computer, or leather sofa, etc. Hey, we all spend some money on these items, the key is to have some discipline…
