Canadian housing mortgage rates are all over the map. Don’t get trapped in an unnecessarily costly mortgage agreement.
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Latest in Mortgage News: 4 in 10 Buyers Open to Purchasing a Home “Virtually” + MORE Jun 13th
Social distancing restrictions in place for the past few months have transformed the way homes are bought and sold, with many showings now taking place “virtually.” And many homebuyers—42%, to be exact—are just fine with that, according to a recent survey by the Ontario Real Estate A.... More »
7 smart strategies for first-time home buyers + MORE Nov 19th
If you’ve been thinking about buying a house, you may be wondering how you’ll know when it’s “the right time.” If you don’t have a 20% down payment saved up, is it still OK to consider buying? If you can’t afford your forever home, should you still jump into ownership now? And does the.... More »
CMHC-Backed Report Calls for Annual Surtax on Homes Valued at $1M+ + MORE Jan 7th
A new report backed by Canada's national housing agency is calling for a home equity tax on houses valued at $1 million and more..... More »
Rate Increases a Concern, but Many Borrowers Say They Can Handle It: RBC + MORE Mar 26th
Rising interest rates is a concern for most mortgage holders, though many feel "well-positioned" to deal with it..... More »
Can I afford to buy a second home? + MORE Sep 26th
There are plenty of reasons you may want to buy a second home. Maybe you’d like a second property for a family member to live in (e.g., your daughter while she attends university) or a condo to stay in during the week when you’re working downtown. But can you afford it?
“Before you buy.... More »
Good debt and Bad debt…. do we Canadians recognize the difference?
– canadamortgagenews.ca
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…
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…
