Will you make money on your rental property? + MORE Sep 8th

Mortgages in Canada can be a murky subject – one that we hope to shed some light on with a series of highly informational articles.
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How much credit card debt does the average Canadian have? + MORE Sep 23rd

As the country re-opens after COVID-related restrictions, Canadians are faced with a worrying financial picture. Many have moved, others are looking to travel, and the cost of living is ballooning with unusual rates of inflation. Meanwhile, the Bank of Canada (BoC) rate hikes designed to curb these .... More »

The latest in mortgage news: OSFI has no plans to loosen the stress test Sep 17th

Despite today's mortgage borrowers having to qualify at rates in excess of 6% and 7%, Canada's banking regulator said no changes to the stress test are imminent..... More »

The latest in mortgage news: OSFI unveils minor changes to insurer capital adequacy test + MORE Sep 29th

Canada's federal banking regulator unveiled revisions to its Mortgage Insurer Capital Adequacy Test for insured variable-rate mortgages..... More »

The best life insurance in Canada: your complete guide + MORE Sep 14th

Wondering how to get the best life insurance in Canada for you and your family? You’re not alone. The pandemic has shown Canadians that we are not invincible. In fact, a 2021 survey found 44% of us bought or now plan to buy life insurance because of the effects of COVID-19. But not everyone is con.... More »
 home loans

I missed a mortgage payment. What happens now? + MORE Sep 20th

If you skip one month’s mortgage payment, then resume scheduled payments for six months, all six of those payments may be considered late..... More »
Variable-rate mortgage holders will see their interest costs rise once again starting on Thursday as prime rate rises to 5.45%.

Continue Reading On canadianmortgagetrends.com »

After a strong rise in real estate prices in 2021 and in early 2022, many markets are now seeing weakening home prices. Current rental property owners, as well as new potential investors looking to buy, may be wondering how to determine if a rental property is a good strategy for them.

If you are thinking about becoming a landlord, you need to consider not only the purchase price and mortgage repayment costs of your property, but other financial considerations as well. 

How much does it cost to buy a rental property?

When purchasing a rental property, the typical down payment requirement is 20% of the purchase price. If the owner is going to occupy one of the units in a multi-unit property, there is a lower minimum.

For one- or two-unit properties, a buyer needs only 5% of the purchase price and can borrow the other 95%. However, if the property is worth more than $500,000, the minimum down payment is 5% on the first $500,000 plus 10% of the excess…

Continue Reading On moneysense.ca »

Canadian home prices are falling. Borrowing costs are increasing at an incredible rate. It’s the battle royale of home ownership affordability: Will wannabe home owners benefit from the real estate market correction, or will their dreams be crushed by the rising mortgage costs that are causing it? 

I believe that improved home ownership affordability is on the way, but that the “improvement” will likely be modest. To understand why, it helps to know how we got here and to consider what happens to the affordability equation as home prices go down and borrowing costs go up. 

Inflation (not rates) is the biggest concern for central banks

Since March 2022, the Bank of Canada (BoC) has been raising interest rates in an effort to tame runaway inflation.

In June, inflation in Canada reached a 39-year high of 8.1% year-over-year, after decades of mostly low, stable and predictable inflation. It eased to 7.6% in July, but it remains well above the BoC’s target of 2% annual inflation…

Continue Reading On moneysense.ca »


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