Personal Savings getting you down? There are always smart ways to increase your savings.
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The scoop: What Canadian investors need to know now + MORE Sep 19th
For those who like surprises, the stock markets have not disappointed in 2020. The S&P 500 surged to new heights despite the economy-clenching COVID-19 pandemic powering around the globe, and individual investors’ participation in trading reached a 10-year high during the first half of this ye.... More »
Our roundup of the best tax tips for Canadians + MORE Nov 14th
Tax tips are like opinions—everyone has one. But the key is to listen to the ones you can trust. That’s why we rounded up our favourite expert tax advice. Regardless of whether you are doing your taxes yourself, or you have someone do them for you, you will find most of these helpful to your tax.... More »
Inflation: How It Affects Your Finances + MORE Jun 13th
Much of Canada’s economy has ground to a halt amid the COVID-19 pandemic. One of the effects of this has been a drop in prices for many items. Most notably, gas.
As a result of consumer prices dropping, Canada’s inflation rate went negative to -0.2% in April, according to Statistics Canada, whi.... More »
What is an emergency fund and how to build one + MORE Apr 11th
Table of contents
What is an emergency fund?
Why do I need an emergency fund?
How much should I keep in an emergency fund?
What qualifies as an emergency?
What doesn’t qualify as an emergency?
How to build an emergency fund
Set a monthly budget and find out how much you can set aside
Choos.... More »
This 33-year-old analyst makes $100,000 a year including bonus. She paid off her student loans and wants to buy a home. Is now the right time? + MORE Jul 25th
Like many millennials, Anna’s main long-term goal is to save up for a down payment. Now, because of the pandemic, she’s looking to buy sooner than later because of the real estate market..... More »
Close to retirement? Don’t panic, say financial experts
– thestar.com
If you are going to dip into your savings, do so in a planned way and track what you remove.Close to retirement? Don’t panic, say financial experts
– thestar.com
If you are going to dip into your savings, do so in a planned way and track what you remove.Can You—And Should You—Co-sign on a Mortgage?
– ratesupermarket.ca
As average home prices in Canada top $500,000 (and rise above $1 million in cities like Toronto and Vancouver), some Canadians may wonder if they’ll ever be able to buy the place of their dreams. One option for some is to find another person—a parent, sibling or another close relative—to co-sign their mortgage.
Why Would Someone Ask You to Co-Sign?
Co-signing a mortgage is a way to help someone else get a mortgage for a home. If your loved one has poor credit, low savings or isn’t employed, agreeing to co-sign may help lenders look past your family member’s circumstances. If your relative is looking for a house that’s slightly out of their price range, agreeing to co-sign may help them get a bigger loan than they would otherwise be able to qualify for on their own.
Risks of Co-signing Someone Else’s Mortgage
If a family member asks you to co-sign their loan, should you agree? Co-signing is a big commitment. By signing, you agree to buy the home with the primary borrower…
Should You Borrow Money to Make a Down Payment on a New Home?
– ratesupermarket.ca
Saving for a mortgage down payment can be a long and tedious process. According to the Canadian Real Estate Association, the average price of a Canadian home was $540,000 in February, a 15.2% increase compared to a year earlier. You would need to save $108,000 just to make a standard 20% down payment. Faced with rising home prices, some Canadians choose to borrow money for their down payment.
How to Borrow Money for a Down Payment?
Borrowing money for a down payment is certainly possible, though you’ll have to put up some of the money yourself. Lenders require a minimum of 5% of the purchase price up to $500,000 and 10% over $500,000. You may be able to use other loans to help with your down payment, but only after the lender’s minimum requirements are satisfied. For example, if you’re buying a $500,000 home and have $25,000 in savings, you could use a personal loan to cover the rest of the down payment.
Advantages of Borrowing for a Down Payment
With interest rates at historic lows, borrowing for a portion of your down payment might make sense in the right circumstances…
