“Should we refinance our mortgage?” + MORE Dec 23rd

Mortgages continued to lead all forms of credit growth as of the second quarter, rising over 45% compared to pre-pandemic levels, new data shows.

Our guide to home insurance is here to remove the confusion and help you understand what home insurance is, whether you need it, how much it costs, and what it does and doesn’t cover. We break it down in a way that will help you get the best coverage for your home, your valuables and your budget. In this handy guide, we will cover:

How home insurance works:

What is home insurance?How does home insurance work?What does home insurance cover?What doesn’t home insurance cover?What are the different types of home insurance?How do you calculate the value of your stuff?How much coverage do you need?How much does home insurance cost?How to save on home insuranceIs home insurance required by law in Canada?What factors affect the cost of home insurance?How do I tell if my home insurance settlement is fair?How to compare home insurance

Frequently asked questions about home insurance:

Is flooding covered by home insurance?Do I need flood insurance?Does home insurance cover fire damage?Does home insurance cover water leaks?Does home insurance cover tornado damage?Does home insurance cover earthquakes? Does home insurance cover personal injury?Does a fireplace increase home insurance?Can you cancel your home insurance policy at any time?Does home insurance cover mortgage payments?Do I need home insurance for renovations?Is home insurance mandatory for mortgages?

Get personalized quotes from Canada’s top home insurance providers…

We’re thinking about breaking our existing home mortgage to take advantage of low interest rates and would appreciate some guidance. This is our scenario:

Mortgage principal: $572,000Weekly payments: $746.00Interest rate: 3.78% fixed and locked in until December 2024Penalty fee for breaking mortgage: $33,000

You’re 2 minutes away from getting the best mortgage rates in CanadaAnswer a few quick questions to get a personalized rate quoteI’m buying a homeI’m renewing/refinancingYou will be leaving MoneySense. Just close the tab to return.

If we decide to pay the penalty, we could lock into a four-year mortgage at 1.74% fixed, which looks like it would save us approximately $2,500 to $3,000 in interest payments.

Here’s where I think it gets interesting. If we decide to continue paying the same $750 per week that we do now and put the extra money towards principal, the difference between that and the new weekly mortgage payment of $570 would be $175—giving us $8,400 per year to put directly towards principal…

Would you like to buy a home soon but not sure if you should continue renting instead? Or are you already a homeowner and pondering if it’s worth it to break your mortgage and refinance? In these and many other mortgage scenarios, it is always worth investigating what you’ll be signing up for and how much it will cost you—upfront and over the long term. To help, we’ve compiled 10 must-use online calculators that make it easier to shop and compare even the most complex mortgage and housing scenarios. 

You’re 2 minutes away from getting the best mortgage rates in CanadaAnswer a few quick questions to get a personalized rate quoteI’m buying a homeI’m renewing/refinancingYou will be leaving MoneySense. Just close the tab to return.

No. 1: Buying versus renting calculator

If you’re currently renting and want to know whether or not you should dive into the housing market, you’ll want to explore a renting versus buying calculator. This New York Times calculator is one of the best…