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
Opinion: Think twice before handing your mortgage to a bank adviser + MORE Oct 7th
Every now and then, something happens in this business that really drives home an important lesson, and this time, it’s about how trusting the wrong person with your mortgage file can cost you a great deal..... More »
Mortgage brokers rated their lenders, and these are the results + MORE Apr 16th
If you want to know how mortgage lenders are performing in today’s volatile market, who better to ask than a mortgage broker?.... More »
The latest in mortgage news: Government unveils details of its foreign buyer ban Dec 25th
The government unveiled details of its foreign buyer ban on residential properties earlier this week, just days before the rules are set to take effect..... More »
Bloom unveils new home equity prepaid Mastercard as novel way for seniors to fund retirement + MORE Mar 16th
A first-of-its-kind product by Toronto-based Bloom Financial is offering an innovative solution for seniors struggling to fund their retirement in the face of rising costs..... More »
Even with expected rate cuts, mortgage payments will continue to rise for years: BoC research Jan 9th
Despite anticipated Bank of Canada interest rate cuts later this year, mortgage borrowers will continue to face higher debt-servicing costs for several years..... More »
You remember last year when credit card companies and other financial institutions offered payment deferrals for people who needed the help? Well, those payments are coming due.
Beth works in real estate, and deferred both her credit card and mortgage payments for six months last year, after the COVID-19 pandemic hit. “I did both because my income is so unpredictable,” she says. “I ended up keeping up with credit card payments no problem, but the mortgage deferral helped tremendously.” (We’ve changed her name to protect her privacy.)
But deferrals aren’t free money: The interest she would normally have been paying as part of each mortgage payment was added to her principal, meaning she now owes more in total than she did before the deferral. “I’m about 10,000 dollars more [in debt] than I would have been, but that’s OK. The help was there when I needed it.”
While the overall economic outlook for Canada appears positive, not everyone is benefitting. So what can you do if you can’t yet afford to start making those debt repayments again?
It may not be as rough a transition as you think…
Beth works in real estate, and deferred both her credit card and mortgage payments for six months last year, after the COVID-19 pandemic hit. “I did both because my income is so unpredictable,” she says. “I ended up keeping up with credit card payments no problem, but the mortgage deferral helped tremendously.” (We’ve changed her name to protect her privacy.)
But deferrals aren’t free money: The interest she would normally have been paying as part of each mortgage payment was added to her principal, meaning she now owes more in total than she did before the deferral. “I’m about 10,000 dollars more [in debt] than I would have been, but that’s OK. The help was there when I needed it.”
While the overall economic outlook for Canada appears positive, not everyone is benefitting. So what can you do if you can’t yet afford to start making those debt repayments again?
It may not be as rough a transition as you think…
You need long-term disability insurance. Now what?
– moneysense.ca
Long-term disability insurance likely isn’t something you ever want to be in a position to need, but if ever you do need it, you’ll be grateful it’s there. Like short term-disability insurance, it provides financial assistance to an employee who is unable to work because of an accident, injury or illness. True to its name, long-term disability (LTD) payments cover a long period of time—as much as several years.
What benefits do you get from long-term disability?
When you qualify for LTD benefits, you’ll get a monthly payout for covering everyday expenses like your mortgage or rent, groceries, utilities, etc. (Find out the difference between life insurance and mortgage insurance.) Most LTD policies pay out benefits for up to two years if you can’t return to your job. If, after those two years, you’re still unable to work, the benefits may continue until you reach 65 years of age and can access the Canada Pension Plan. Alternatively, you may receive provincial disability support or Workplace Safety and Insurance benefits…
What benefits do you get from long-term disability?
When you qualify for LTD benefits, you’ll get a monthly payout for covering everyday expenses like your mortgage or rent, groceries, utilities, etc. (Find out the difference between life insurance and mortgage insurance.) Most LTD policies pay out benefits for up to two years if you can’t return to your job. If, after those two years, you’re still unable to work, the benefits may continue until you reach 65 years of age and can access the Canada Pension Plan. Alternatively, you may receive provincial disability support or Workplace Safety and Insurance benefits…
