Death, Taxes, and Interest Payments: Part 2 + MORE Jul 1st

There are some things in life you can’t avoid, but only two things you can’t avoid paying for: taxes and interest payments. In Part 1 of this series, we looked at owning a rental property as a great way to build your net worth while reducing your taxes. Now, in Part 2, we’ll be turning to interest payments. 

Interest payments are a pain to deal with but a necessary evil nonetheless. Here are a few ways to make them a little less painful. 

Consolidate Your Debts

Canadians were paying down their credit cards like crazy during the pandemic. It was an encouraging trend – but not one that was meant to last. As we head back into reality, so too are our personal finances: credit card spending was up 14.4% year-over-year at the end of 2021. Unfortunately, a lot of this debt is needless.

There is no reason to carry a credit card balance if you are eligible for a line of credit. Interest rates on credit cards can be as high as 22.99%, while unsecured lines of credit are Prime plus 3%…

Mortgage rate comparison

After consecutive years of record-low interest rates in Canada, we are entering a period of rising rates—which makes the cost of borrowing money, be it for a mortgage or a student loan, more expensive. The possibility of more rate hikes can make the stability of a five-year fixed mortgage rate seem like a good option compared to one with a variable rate—especially for first-time homebuyers or those about renew their existing mortgage. In fact, five-year fixed-rate mortgages are the most popular mortgage product in Canada. However, as with any financial product, they still have their drawbacks.

Before speaking to a lender or mortgage broker, learn more about how they compare to five-year variable mortgage rates.

What is a five-year fixed mortgage rate? 

As the name implies, a five-year fixed-rate mortgage comes with a mortgage term of five years—that’s the duration for which your mortgage contract remains in effect. In Canada, mortgage terms range from six months to 10 years, with five years being the most common…

Land Transfer Tax Calculator

Buying a home is an exciting process with many unexpected costs. Beyond your down payment, you’ll also be responsible for paying legal fees, appraisal costs, title transfer costs and taxes to the province or municipality (or both). 

That last item is called a land transfer tax (LTT), and it applies everywhere except in Alberta, Saskatchewan and all three territories, which instead charge land transfer fees. Despite the differences in terminology, the idea is the same: The buyer pays a one-time fee to the local government whenever a property changes hands. Below, you will find detailed information on land transfer taxes, fees and rebates:

What is a land transfer tax?How is land transfer tax calculated?Land transfer taxes at a glanceLand transfer taxes and fees by province and territoryCities that charge additional land transfer taxWhat is a first-time home buyer rebate?First-time home buyer land transfer tax rebatesOther land transfer tax rebatesLand transfer tax exemptions

You’re 2 minutes away from getting the best mortgage rates in CanadaAnswer a few quick questions to get a personalized rate quote*I’m buying a homeI’m renewing/refinancingYou will be leaving MoneySense…

Home insurance is a type of coverage that protects your home and its contents from damage or loss. By paying a monthly or annual premium, you are assured that both the interior and exterior of your home—typically a person’s most important and expensive investment—will be covered by your insurance company against certain insured losses or damages.

Although home insurance is not mandatory by law in Canada, many lenders will require proof of insurance at the time of signing or renewing your mortgage. You may wish you could forgo this expense, but the truth is having home insurance protects you from having to dole out a large amount of money all at once, especially when it’s unexpected. If you’re looking to get insured, you should review and compare home insurance quotes from different insurers. 

Get personalized quotes from Canada’s top home insurance providers.Home insuranceRenters insuranceCondo insuranceYou will be leaving MoneySense. Just close the tab to return.

How much does home insurance cost?

The average cost of home insurance in Canada is $960 per year (equal to $80 per month), according to Ratehub…