Canadian housing mortgage rates are all over the map. Don’t get trapped in an unnecessarily costly mortgage agreement.
Latest News
You bought a home—should life insurance be next? + MORE May 9th
Buying a home is one of the biggest financial milestones for young Canadians, and one of the riskiest. For many households, a mortgage becomes the single largest expense they’ll ever take on, often requiring two incomes to keep it manageable.
That reality is driving more homeowners to buy life .... More »
How mortgage brokers can unlock the power of personal video messages + MORE Apr 1st
It's important to find ways to connect with potential clients and build trust. By recording a video that is tailored to an individual prospect, you can set yourself apart from others and create a memorable experience..... More »
Variable Mortgage Rates to Rise as Prime Rate Jumps to 3.20% + MORE Apr 16th
Variable-rate mortgage holders are about to see their interest costs rise again after Canada's Big 5 banks announced a 50-basis-point hike to prime rate on Wednesday..... More »
How much is the average mortgage payment in Canada? + MORE Aug 12th
There’s a cost-of-living crisis affecting many Canadians in 2023. Despite inflation falling to 2.8% in June, the run-up in prices of 2022 and early 2023 have made many staples, including groceries, unaffordable for everyday people. Meanwhile, the Bank of Canada’s (BoC) efforts to bring infla.... More »
How to buy a home the right way, according to CMHC + MORE Mar 1st
Canada Mortgage and Housing Corp. has updated its free guide to the process of buying a home, with an emphasis on encouraging Canadians to think long term about what kind of home they should buy — or whether they would be better off renting..... More »
Should I pay off a loan using my RRIF?
– moneysense.ca
Q: I’m retired and used a line of credit to do repairs on my house. Should I draw from my RRIF to pay it off or just keep paying down the line of credit gradually?
—Marlene Crew, via email
A: Math and mindset: This debt repayment question requires you look at both. For instance, does the outstanding debt from the line of credit keep you up at night? If it does, there is a greater benefit to paying it off in full. If you can still sleep without doing Nyquil shots, the math supports a plan to pay it off gradually. According to Allan Norman, a CFP with Atlantis Financial in Barrie, Ont., you should “draw enough to move your taxable income to just below the next marginal tax rate and use that money to pay down your line of credit.” Just avoid moving up to a new rate as you’ll pay more income tax and, at the same time, risk reducing the Guaranteed Income Supplement or other benefits you currently receive. One last thought: Shop around for the lowest rate on your line of credit. You can often lower the rate if you secure the loan against an asset, such as your house…
—Marlene Crew, via email
A: Math and mindset: This debt repayment question requires you look at both. For instance, does the outstanding debt from the line of credit keep you up at night? If it does, there is a greater benefit to paying it off in full. If you can still sleep without doing Nyquil shots, the math supports a plan to pay it off gradually. According to Allan Norman, a CFP with Atlantis Financial in Barrie, Ont., you should “draw enough to move your taxable income to just below the next marginal tax rate and use that money to pay down your line of credit.” Just avoid moving up to a new rate as you’ll pay more income tax and, at the same time, risk reducing the Guaranteed Income Supplement or other benefits you currently receive. One last thought: Shop around for the lowest rate on your line of credit. You can often lower the rate if you secure the loan against an asset, such as your house…
FCF Capital Buys 60% of DLC
– canadianmortgagetrends.com
When it comes to mortgage origination volume, the most successful brokerage operation in Canada—hands down—is Dominion Lending Centres (DLC). In 10 years the company has gone from zero to 5,000+ agents, 650 locations and more than 40% market share in the broker space. FCF Capital Inc. (FCF) saw that success and decided it wanted a piece of it. So it bought 60% of DLC for almost $74 million. That pegs the entire enterprise value of the company, if you include assumed debt, at roughly $139 million according to co-founder Gary Mauris. We spoke with Gary and FCF CEO Stephen Reid READ MORE
A line of credit is derailing my mortgage application
– moneysense.ca
In our April 2016 issue of MoneySense, we introduced you to Lindsay Tithecott, a 29-year-old who is trying to pay down debt, build up savings and buy a larger condo. Throughout the year we’ll be giving her a financial challenge every two weeks to help her get her finances in tip top shape. She’s already been challenged to cut her fitness expenses as well as to determine if she should prioritize debt-repayment over saving. Lindsay’s third challenge was all about condo-buying and the various aspects associated with that process.Challenge No. 3 — An update
Over the last couple of weeks, Lindsay has done some legwork and gone to a competitor bank to find out how large of a mortgage she’d need to purchase a two-bedroom condo in Kamloops, B.C. She’s also learned about the costs of CMHC mortgage insurance as well as large a mortgage she’d be eligible for.
Lindsay talked about her experience in the video below and then we had experts give her some clarification and advice…
