How to split the mortgage + MORE May 5th

LISBON, Portugal – Portugal will not seek a protective line of credit after its government fulfils requirements imposed by foreign bailout creditors as part of a 78 billion euro ($107 billion) rescue package, its prime minister said Sunday.
Pedro Passos Coelho’s government is due to regain financial sovereignty over the economy on May 17, after three years of being told what to do by the International Monetary Fund, European Commission and European Central Bank under a financial rescue.
“It is the right choice at the right time,” Passos Coelho said, adding that the Cabinet had taken the decision “after careful consideration and reviewing all the pros and cons.” A protective line of credit would have acted as a safety net for the economy, but would have come with strings attached.
The 2011 rescue prevented national bankruptcy, but Portugal had to accept steep tax increases, an end to long-standing labour entitlements and deep cuts in pay, pensions and welfare rights…

Photograph by Ben Nelms
The current situation
Ales Eisner, 40, is an IT contractor making $150,000 annually in Surrey, B.C. He’s single and has been an aggressive investor, mainly because he wants to retire at age 50. “I like high growth as well as dividend-paying stocks,” says Eisner. “I try to keep my portfolio Canadian and I’ve had an average annual return of 10% gross.” Three years ago, he also purchased four investment properties in the U.S.: two in Nevada and two in Arizona, all sight unseen for less than $100,000 each. To buy them, he had to put $280,000 on a line of credit, but each U.S. house has since doubled in price.
Today, his income properties net $20,000 annually but he plans to sell one in three years to help pay off the debt on his other homes and to get rid of any business-related debt on a second line of credit. At age 50, he will then sell all but one of his houses. “The cash from those sales would go to my investment portfolio,” says Eisner, who currently contributes a combined $1,450 per month to his various accounts…

Buying a home just got a bit trickier for many Canadians. The CMHC has announced the most recent changes to hit the housing market, targeting self employed buyers and those looking to purchase a second home or cottage. Not sure how these changes will affect you? Check out this week’s comprehensive coverage.
In other mortgage news, looks like variable rate owners can breathe easy for years to come, as BoC Governor Stephen Poloz confirms Canada will enjoy record low interest rates until at least 2016. Has there ever been a better argument to go variable?
CMHC Axes Second Home and Self Employed Mortgages
The Canada Mortgage and Housing Corporation is discontinuing its Second Home and Self Employed mortgage products, forcing these niche buyers to adhere to stricter qualification requirements, and limiting their financing options. Will you be affected by this latest change to hit the mortgage market?
Read Penelope’s Blog | CMHC Axes Second Home and Self Employed Mortgages
Pro Post: 4 Tips to Bust Tax Procrastination!
The Canada Revenue Agency has extended the 2013 tax deadline to May 5th – but that’s not stopping many from procrastinating until the last second…

Company: Canada Mortgage Direct Position Title: Mortgage Specialist (Underwriter) Years of Experience Required: 3-5 years mortgage industry experience. Licences or Registrations Required: Mortgage associate licence with RECA Locations of Positions:…

Photograph by Tony Lanz
Q: When two people buy a house, is it normal for them to make the same mortgage payment monthly, even if one person makes more money?—M.S., Toronto
A: Relationships are funny. What’s considered “normal” behaviour for one couple may be considered completely absurd by another couple living right next door. In my opinion, “normal” doesn’t matter. What matters is what works for the two of you, based on what you want. Take a big step back and talk about what you want for the future—both as individuals and as a couple. Then figure out how you’re going to pay for it. Not just the mortgage—all of it: house maintenance, groceries, vacations, cars, kids, retirement savings and your respective vices. Sure, when there is a disparity in income it can be a challenge to decide on priorities. When thinking long term, it is best if your retirement incomes are as close as possible, in order to minimize the tax you pay. This means the higher-income earner should pay more of the expenses pre-retirement…