Family legacy: How to pass along the family cottage—and 3 things to avoid + MORE Nov 22nd

Lenders have been dropping fixed mortgage rates over the past few weeks…except for the Big 6 banks. But that changed this weekend when three of the big banks finally lowered select rates.

At the Mortgage Professionals Canada conference last month, Benjamin Tal, Deputy Chief Economist at CIBC World Markets, gave a very hopeful and informative presentation.

Mr. Tal always has a keen sense of what’s next both nationally and internationally. He is extremely apt at making sense of global economics, then breaking down in simple terms what it means for Canada. This time he came forward with a positive forecast that I agree with: rates are due to fall.

What’s behind Tal’s forecast

Tal predicts that rates will start to come down by late spring or early summer 2024 and continue to fall into 2025. He believes that they’ll come down by as much as 2.50% from today’s rate.

What makes him so sure? It’s fairly unanimous that Bank of Canada minister Tiff Macklem overcorrected with his rate hikes. He could have easily stopped raising rates at the end of 2022, but continued to raise it three more times to ensure skyrocketing inflation would cool down quickly.

It appears to have worked…

The iconic Canadian cottage stands as a symbol of family traditions, summer getaways and cherished memories. Yet, as the years pass and generations shift, the future of a family cottage can become uncertain, thanks to things like family conflicts, financial implications and differing expectations among family members. Canadian cottage owners face a unique challenge: how to pass on the legacy of the holiday home to ensure that future generations are able to enjoy it for years to come? 

There’s no one-size-fits-all solution. “Planning has a lot of moving pieces, and it’s very important to get it right, and it’s very easy to get wrong,” says Peter Lillico, partner at Lillico Bazuk Galloway Halka Law firm in Peterborough, Ont. He is also a speaker at the Cottage Life shows. “Every family is unique, every cottage is unique, and every cottage succession is unique.” Here, he breaks down the common misconceptions Canadians have about estate planning around the family cottage.

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