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
Sub-6% U.S. mortgage rates vanish as Iran war sparks inflation fears Mar 7th
U.S. homebuyers had to act fast last week to nab the first sub-6% mortgage rates in more than three years. Now they’re up, and the new conflict in the Middle East threatens to nudge them higher..... More »
2023 mortgage market year in review Dec 31st
As we wrap up a year full of economic twists and turns—and interest rate ups and downs—we wanted to look back at some of the top mortgage-related stories that graced our pages in 2023..... More »
MoneySense has a new look Apr 25th
We have exciting news: MoneySense has made some upgrades. The core of what we do will stay the same—we’ll continue to bring you high-quality content from the best financial experts in Canada—but we have a fresh new look.
Why are we changing?
We want you to have the best possible expe.... More »
Should you get a fixed-rate or variable mortgage? In these strange times, fixed has a rare edge Nov 23rd
With rates this low, the usual advantages of renewing with a variable mortgage are diminished or gone, writes David Aston..... More »
Latest in Mortgage News: Toronto Home Prices Set July Record Aug 9th
The rebound for Toronto home prices continued in July, with the average selling price reaching a record $943,710. That’s a 16.9% increase compared to a year earlier, according to the Toronto Regional Real Estate Board (TRREB). Home sales in the Greater Toronto Area were up 29.5% in July compar.... 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
