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The wrong way to pay off debt + MORE Sep 10th
I’ve always believed that anyone substantially mired in debt has no business fantasizing about retirement. For me, this extends even to a home mortgage, which is why I often say “the foundation of financial independence is a paid-for home.”
Sadly, however, it’s a fact that many Canadian sen.... More »
Should I pay off a loan using my RRIF? + MORE May 15th
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 outstan.... More »
My mission is to help keep mortgage consumers informed! + MORE Dec 9th
Many mortgage brokers and other sales/service professionals keep track of numbers to measure whether we’re on track for growth year-over-year.
So, I did some math. Since becoming a broker in 2004, my team and I have successfully funded more than $920 million in mortgages. That’s a big n.... More »
U.S. existing-home sales rose to eight-month high in October + MORE Nov 21st
Sales of previously owned homes in the U.S. rose in October to the fastest pace in eight months, as buyers took advantage of lower mortgage rates and gained the upper hand over sellers in some markets..... More »
Renting out your home can bring cash—and complications + MORE May 21st
If you search “Airbnb how to get started” you’ll reach their splash page with a big number. As of May in Toronto, Airbnb says you can make more than $4,000 per month during the FIFA World Cup. It’s a powerful lure for someone who needs help with their rent or mortgage, and has a spare room t.... More »
How to pay off the mortgage faster
– moneysense.ca
(Photograph by Jenna Wakani)The current situation
Mukesh Aggarwal, 52, and his wife Shabnam, 47, immigrated to Mississauga, Ont., nine years ago with their two sons. Together, the two pull in $175,000 annually, and both receive average annual pay increases of 5%. But despite such lucrative employment, they’re feeling weighed down by the $615,000 mortgage remaining on their home. “We want to retire debt-free,” says Mukesh, noting that their 2.3% mortgage rate expires next July.
Recently, the couple increased their weekly mortgage payment to $700 but feel that won’t be enough. Their goal is to pay off the mortgage in 13 years, before Mukesh turns 65. They are considering putting half of their 5% average annual wage increase towards the mortgage but also want to look at other options. In 2016, their youngest son will complete university, and that will free up $7,500 annually for the mortgage. Although Mukesh stopped contributing to his RRSP, Shabnam still puts $4,800 annually into her TFSA and both pay into their company’s pensions…
Invest or pay off the mortgage?
– moneysense.ca
(mstay/Getty Images)Q: I have an outstanding mortgage of $490,000 with a 3.34% fixed interest rate for another 4 years and I do biweekly payments of $1,310.I currently invest $1,000 a month in a TFSA account that has given me an average of 8% last year, with a combined MER of 2.8%. I also have a group RRSP where I put in $690 and my employer puts in $200 a month and it has given me a return of 8% last year with the MER at 2.4%. Our household income is $150,000 a year and we have no other debt. My plan was to drop my TFSA and start paying down my mortgage faster for I do not feel that when the times come to renew my mortgage in 4 years that I can get the same rate. I have another $500 a month on top of the $1,000 from the TFSA that I could pay extra to my mortgage as well, so a total of $1,500.—Martin
A: Given where interest rates stand today, Martin, your rate seems kind of high. The banks are lending now for five years at a fixed rate of 2.89%, so your 3.34% doesn’t seem so great in comparison…
Mortgage rates: More declines to come, brokers say
– moneysense.ca
(Getty Images/Juan Monino)TORONTO – Mortgage brokers say Canadian banks have started cutting some of the rates they offer their most trusted borrowers, and they could come down even further as the spring real estate market gets into full swing.
Robert McLister, the founder of RateSpy.com, says Canada’s biggest banks are now offering five-year fixed rate mortgages at an estimated 2.84 per cent to their most qualified borrowers. That’s not far off from the lowest estimated rate RateSpy has on record, which was 2.74 per cent in April 2013.RateSpy estimates the rate at which banks will lend to their most credit-worthy borrowers, which is much lower than the rates banks advertise on their websites.The site revised its estimate down from 2.89 per cent on Monday, after Royal Bank (TSX:RY) cut its posted rate for five-year fixed mortgages over the weekend by 10 basis points to 4.84 per cent.
McLister says RateSpy estimates the same discretionary rate for all of the banks, as they are all competing for the most qualified borrowers and are likely to price match…
Mortgage Career: Merix Financial
– canadianmortgagetrends.com
Company: Merix Financial Position: Sales and Training Manager Location: Ontario Sales and Training Manager, Eastern Canada Are licences or registrations required? No How should candidates contact you? jill.paish@merixfinancial.com Corporate profile: MERIX Financial is proud to offer the Canadian mortgage industry a lending solution that is focused on helping mortgage originators create REAL value in […]
RBC cuts mortgage rate as bond yields drop
– moneysense.ca
(Photo: Fernando Morales/The Globe and Mail/Canadian Press)Royal Bank of Canada is the first major bank to lower mortgage rates after five-year bond yields fell following last week’s surprise key rate cut by the Bank of Canada, Bloomberg is reporting.
RBC is offering five-year fixed rates at 2.84% this week and lowered its three-, seven-, and 10-year rates.
The bank’s variable mortgage rate however is holding steady at 3%. Last week, TD suggested it would not change its prime rate either.
“Our decision regarding our prime rate is impacted by factors beyond just the Bank of Canada’s overnight rate. Not only do we operate in a competitive environment, but our prime rate is influenced by the broader economic environment, and its impact on credit…Our decision not to change our prime rate at this time was carefully considered and is based on a number of factors, with the Bank of Canada’s overnight rate only being one of them,” TD said in a statement.
READ: How the BoC interest rate cut will affect mortgages »
READ: Is it time to break your mortgage »
The post RBC cuts mortgage rate as bond yields drop appeared first on MoneySense.
