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
When does it make sense to sell real estate in a larger city and buy in a smaller one? May 31st
Q. I am currently living in Saint John, NB, and renting ($1,450 a month + Internet—very expensive for this little town). I also own a condo in Burlington, Ont., worth about $500,000, which I have been renting out for the past two years. With income taxes factored in, the rent just covers carrying .... More »
The latest in mortgage news: Government unveils details of its foreign buyer ban Dec 25th
The government unveiled details of its foreign buyer ban on residential properties earlier this week, just days before the rules are set to take effect..... More »
The Latest in Mortgage News: BoC’s Affordability Index reaches worst level since 1991 Aug 15th
Housing affordability deteriorated to its worst level in over 30 years, according to data from the Bank of Canada..... More »
Clock ticking for Ontario mortgage brokers to complete required training + MORE Feb 13th
More than 17,000 agents and brokers must log mandatory training hours — including a new professional development requirement — with FSRA by March 31 to renew their licences..... More »
How to protect yourself from identity fraud in Canada + MORE May 27th
In 2024, Canadians lost a jaw-dropping $638 million to fraud, according to the Canadian Anti-Fraud Centre (CAFC). That’s already a hefty $60 million more than losses reported the previous year, but the true total is likely much, much higher—experts at the CAFC say that less than 5% of scams are .... More »
You remember last year when credit card companies and other financial institutions offered payment deferrals for people who needed the help? Well, those payments are coming due.
Beth works in real estate, and deferred both her credit card and mortgage payments for six months last year, after the COVID-19 pandemic hit. “I did both because my income is so unpredictable,” she says. “I ended up keeping up with credit card payments no problem, but the mortgage deferral helped tremendously.” (We’ve changed her name to protect her privacy.)
But deferrals aren’t free money: The interest she would normally have been paying as part of each mortgage payment was added to her principal, meaning she now owes more in total than she did before the deferral. “I’m about 10,000 dollars more [in debt] than I would have been, but that’s OK. The help was there when I needed it.”
While the overall economic outlook for Canada appears positive, not everyone is benefitting. So what can you do if you can’t yet afford to start making those debt repayments again?
It may not be as rough a transition as you think…
Beth works in real estate, and deferred both her credit card and mortgage payments for six months last year, after the COVID-19 pandemic hit. “I did both because my income is so unpredictable,” she says. “I ended up keeping up with credit card payments no problem, but the mortgage deferral helped tremendously.” (We’ve changed her name to protect her privacy.)
But deferrals aren’t free money: The interest she would normally have been paying as part of each mortgage payment was added to her principal, meaning she now owes more in total than she did before the deferral. “I’m about 10,000 dollars more [in debt] than I would have been, but that’s OK. The help was there when I needed it.”
While the overall economic outlook for Canada appears positive, not everyone is benefitting. So what can you do if you can’t yet afford to start making those debt repayments again?
It may not be as rough a transition as you think…
You need long-term disability insurance. Now what?
– moneysense.ca
Long-term disability insurance likely isn’t something you ever want to be in a position to need, but if ever you do need it, you’ll be grateful it’s there. Like short term-disability insurance, it provides financial assistance to an employee who is unable to work because of an accident, injury or illness. True to its name, long-term disability (LTD) payments cover a long period of time—as much as several years.
What benefits do you get from long-term disability?
When you qualify for LTD benefits, you’ll get a monthly payout for covering everyday expenses like your mortgage or rent, groceries, utilities, etc. (Find out the difference between life insurance and mortgage insurance.) Most LTD policies pay out benefits for up to two years if you can’t return to your job. If, after those two years, you’re still unable to work, the benefits may continue until you reach 65 years of age and can access the Canada Pension Plan. Alternatively, you may receive provincial disability support or Workplace Safety and Insurance benefits…
What benefits do you get from long-term disability?
When you qualify for LTD benefits, you’ll get a monthly payout for covering everyday expenses like your mortgage or rent, groceries, utilities, etc. (Find out the difference between life insurance and mortgage insurance.) Most LTD policies pay out benefits for up to two years if you can’t return to your job. If, after those two years, you’re still unable to work, the benefits may continue until you reach 65 years of age and can access the Canada Pension Plan. Alternatively, you may receive provincial disability support or Workplace Safety and Insurance benefits…
