Personal Savings getting you down? There are always smart ways to increase your savings.
Latest News
You opened an RESP—now what? Nov 27th
As many Canadian parents and grandparents know, a registered education savings plan (RESP) is a powerful savings tool. Although you can create a college or university fund for your child in other ways, such as a bank account or a tax-free savings account (TFSA), they don’t offer the same valuable .... More »
Kickstart your savings + MORE Nov 7th
The post Kickstart your savings appeared first on MoneySense..... More »
The First Home Savings Account has some surprising benefits — even if you don’t end up with that home + MORE Apr 17th
The FHSA can be a good way for renters to save for a down payment even if they’re not sure about buying a home..... More »
2022 Income Tax Guide for Canadians: Deadlines, tax tips and more + MORE Feb 13th
It’s been quite a year for numbers, hasn’t it? From rising interest rates to steep stock market drops, finances have been headline news throughout 2022. It’s almost enough to make you forget about tax season. But with the tax deadline approaching, you have a few reminders (see the dates below).... More »
Capital gains when selling property to family + MORE Mar 20th
Do I have to pay income tax if I inherited a property jointly with my sister and she bought me out for less than half the appraised value of the property?
—Johanna
Capital gains and transferring property between family
Asset sales between family members can be tricky to facilitate at a family leve.... 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…
