Good debt and Bad debt…. do we Canadians recognize the difference? Oct 25th

Canadian housing mortgage rates are all over the map. Don’t get trapped in an unnecessarily costly mortgage agreement.
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A reverse mortgage allows you to tap into the rising value of your home without selling it, writes David Aston. But watch out for the penalties and fees..... More »

Market Your Mortgage Business More Effectively in 2020 + MORE Dec 12th

It’s not too early to be thinking about New Year’s resolutions. And since you’re promoting yourself and building business, more efficient marketing is probably on your wishlist for next year. Why not resolve to market yourself more efficiently in 2020? Marketing is a full-time job. Since you a.... More »
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Deferring Your Mortgage Could Cost You More Down the Road + MORE Jun 4th

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Concern is growing that Canada’s largest housing market may be about to experience a new round of froth, similar to that seen in 2016. Back then, red-hot housing markets in the Greater Vancouver and Toronto Areas ultimately forced the federal government to introduce the 2016 and 2018 mortgage stre.... More »
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The Latest COVID-19 Mortgage News: Toronto Real Estate Sales Plunge 37% + MORE Apr 1st

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I saw this article from earlier this year about Good debt and Bad debt.  Canadian Personal debt levels have now surpassed $2.21 trillion.  That’s a big number, should we be concerned?  I started to wonder how much of this is Bad debt?  Let’s take a closer look at these stats.
First, let’s define Good debt. I agree with the article, to me, it’s debt that is used to accumulate an investment or asset and if it’s an investment then you may be able to deduct the interest costs from your income, making it tax-deductible.  Investments like a rental property, stocks, bonds, etc would qualify. Borrowing to invest in a rental property is good debt and you can deduct the mortgage interest and other property-related costs from the rental income.
Bad debt is an expense where the interest is not tax-deductible and is used to purchase consumer goods. Things like borrowing for a vacation, a 60″ TV, that new computer, or leather sofa, etc.  Hey, we all spend some money on these items, the key is to have some discipline…

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