Learn more about Canadian mortgage rates, rules and the latest news – read on!
Latest News
Advice for cash-strapped renters and landlords during COVID-19 + MORE May 17th
When the COVID-19 pandemic swept across North America in early 2020, it created a wave of income loss that impacted people from all walks of life. While some individuals have been hit harder than others, it’s difficult to find a group or industry that hasn’t been affected. A small segment of the.... More »
Canada's big banks cut credit card interest rates to ease coronavirus impact - CBC.ca + MORE Apr 4th
Canada's big banks cut credit card interest rates to ease coronavirus impact CBC.caBig Six banks cut credit card interest rates to ease COVID-19 impact CanoeCanadian banks pause payments on 10% of mortgages as they field 500,000 requests for deferrals Financial PostI.... More »
Renewing your mortgage? A guide for Canadians + MORE Oct 10th
More than two years have passed since interest rates took off in 2022, and though the Bank of Canada (BoC) has started backing down that ladder, holders on five-year fixed mortgages continue to face significantly higher rates and payments as their home loans come up for renewal. Even those currently.... More »
How high will interest rates go in Canada? Could they reach double digits? Jul 30th
We’re in the midst of a cost-of-living crisis—with sky-high grocery prices and mortgage rates that would have been inconceivable 18 months ago. To fight inflation, the Bank of Canada (BoC) has increased the policy interest rate by a total of 475 basis points (4.75%) since March 2022 (a basis.... More »
Family legacy: How to pass along the family cottage—and 3 things to avoid + MORE Nov 22nd
The iconic Canadian cottage stands as a symbol of family traditions, summer getaways and cherished memories. Yet, as the years pass and generations shift, the future of a family cottage can become uncertain, thanks to things like family conflicts, financial implications and differing expectations am.... More »
What’s the best mortgage for the first-time home buyer?
– moneysense.ca
Image courtesy of ddpavumba / FreeDigitalPhotos.netQ: I’m buying my first home—a starter home—that I plan to live in for the next five to seven years. How do I know which mortgage is right for me?
— Housing Newbie, Toronto
Answer from Robert McLister, mortgage planner with Ratespy: There are endless mortgages to choose from so get one-one-one advice when you can. In the meantime, here are four quick tips:
#1. If you plan to live in the home for five-plus years, then portability (i.e., being able to move the mortgage to a new property without penalty) is less important. But people’s plans change so don’t ignore porting features altogether. The best portability options afford you:
→ The lender’s best rates if you need to add money to the mortgage (helpful if you upgrade to a more expensive home)
→ More time to close your new mortgage after your old home sells (look for 60 days minimum).
#2. If you don’t foresee moving, refinancing or making big prepayments in the next five years, consider low-frills mortgages…
Are Sell and Leaseback Programs a Good Option for Boomers?
– ratesupermarket.ca
Rising home prices often mean that real estate forms a top-heavy portion of many seniors’ wealth in retirement. This forces some to tap into their home equity in order to pay the bills and overcome their past failure to save.
Until recently, their only choice was a reverse mortgage, a secured loan in which lenders like HomEquity Bank make monthly payments to them, based on the equity that they’ve built up over the years, rather than the other way around.
Related Read: Case Study – Should These Boomers Get a Reverse Mortgage?
Reverse Mortgages An Expensive Option
One major attraction of this arrangement is that the payments you receive aren’t considered taxable income and thus won’t affect your potential government retirement benefits.
A common criticism of reverse mortgages is that they’re expensive, resulting in the view that they should only be used as a last resort. And the certainly are, compared to more common mortgage loans. But the ability to stay in the family home this way is really a bit of a luxury, argue plan sponsors, and having someone else assume some or all of the appreciation risk ought to cost something…
