Mortgages in Canada can be a murky subject – one that we hope to shed some light on with a series of highly informational articles.
Latest News
Latest in Mortgage News: Financial experts see less risk of an imminent recession + MORE Apr 27th
A recent survey of financial experts reveals a shift in recession expectations, showing a decrease in the likelihood of an imminent economic downturn. However, there is growing uncertainty regarding the timing and degree of anticipated Bank of Canada interest rate cuts..... More »
Home construction must double over next decade to restore 2019 affordability: CMHC + MORE Jun 20th
Canada Mortgage and Housing Corp. says up to 4.8 million new homes will need to be built over the next decade to restore affordability levels last seen in 2019 based on projected demand..... More »
Toronto, Vancouver weigh on housing starts in first half of year: CMHC + MORE Sep 10th
Canada Mortgage and Housing Corp. says growth in overall housing starts was flat during the first half of the year compared with 2024, though there were significant regional differences..... More »
Oil shock could keep rates higher for longer, analyst warns + MORE Mar 19th
A prolonged Middle East conflict could push oil prices higher, adding to inflation pressures and raising risks for mortgage rates and household affordability..... More »
Weekly mortgage digest: Which big banks just dropped fixed rates? + MORE Jul 11th
After a spike in bond yields last week prompted some mortgage lenders to increase certain rates, fixed mortgage rates are again trending downward..... More »
Myths and facts of reverse mortgages
– moneysense.ca
A reverse mortgage is exactly what the name implies: accessing the existing equity you have built in your home by granting a mortgage to a lender without the need to make monthly payments.
And yet, there are many misconceptions about this financial product, which allows Canadians to borrow up to 55% of a home’s value, tax-free, on properties worth $250,000 or more.
With home property values soaring and the federal government tightening traditional mortgage qualification rules through a rigorous stress test, more homeowners are looking to reverse mortgages as a way to unlock the value tied up in their properties. Borrowers receive the money tax-free to use as they wish—to supplement their income and increase cash flow; to cover unexpected expenses or home renovations; and to help stay in their current home are just a few examples.
Unlike home equity lines of credit (HELOCs), which require monthly payments, reverse mortgages, such as those offered by Equitable Bank, are ideal for cash-strapped homeowners who want to stay put without increasing their living expenses…
And yet, there are many misconceptions about this financial product, which allows Canadians to borrow up to 55% of a home’s value, tax-free, on properties worth $250,000 or more.
With home property values soaring and the federal government tightening traditional mortgage qualification rules through a rigorous stress test, more homeowners are looking to reverse mortgages as a way to unlock the value tied up in their properties. Borrowers receive the money tax-free to use as they wish—to supplement their income and increase cash flow; to cover unexpected expenses or home renovations; and to help stay in their current home are just a few examples.
Unlike home equity lines of credit (HELOCs), which require monthly payments, reverse mortgages, such as those offered by Equitable Bank, are ideal for cash-strapped homeowners who want to stay put without increasing their living expenses…
Should you hold your mortgage inside your RRSP?
– moneysense.ca
Q. I currently own a house in Edmonton that is mortgaged, and looking to purchase a property in Vernon, BC, that I will eventually retire to. Until then, I am liking the idea of renting out that property to help support the additional mortgage.
I am wondering if it’s possible to transfer my existing mortgage into my RRSP and access the cash there by reducing the amount of additional mortgage I would need to purchase the Vernon property? Otherwise, is there a way to purchase the Vernon property using my RRSP funds?
–Yvonne
A. I am often asked about buying a home to retire to eventually, and renting it out in the meantime. I question the approach because a home you want to live in is not necessarily a good property to rent out to a tenant. A property that is easily rentable to tenants may be close to transit and jobs for example, whereas a property you may want to retire to could be more rural or have different attributes.
In addition, there are things that could change in your life by the time you retire…
I am wondering if it’s possible to transfer my existing mortgage into my RRSP and access the cash there by reducing the amount of additional mortgage I would need to purchase the Vernon property? Otherwise, is there a way to purchase the Vernon property using my RRSP funds?
–Yvonne
A. I am often asked about buying a home to retire to eventually, and renting it out in the meantime. I question the approach because a home you want to live in is not necessarily a good property to rent out to a tenant. A property that is easily rentable to tenants may be close to transit and jobs for example, whereas a property you may want to retire to could be more rural or have different attributes.
In addition, there are things that could change in your life by the time you retire…
