Real Estate
My Mortgage Renewal Strategy
Our mortgage comes up for renewal on September 1st. When we bought our home in 2011 I went with a five-year discounted variable rate mortgage at prime minus 0.80 percent. Such a steep discount wasn’t available when it was time to renew in 2016, so I chose a 2-year fixed rate mortgage at 2.19 percent.…
Read MoreFrom The Boomer & Echo Mailbag: Repaying The Home Buyers’ Plan Loan
Q. Last year (2016) my husband and I bought our first home. For part of the down payment we withdrew from our RRSPs under the Home Buyers’ Plan – $25,000 from mine and $10,000 from his. We’ve had a lot of expenses this year and money is a bit tight. What happens if we don’t…
Read MoreCan You Really Afford That Mortgage?
My husband and I purchased our first home when we were 23 and 21 respectively. Back then the mortgage approval process used all of his income but only 50 percent of mine. Income requirements have changed since then. If both spouses (or common-law, or other applicant) are working, the total of both incomes is utilized…
Read MoreThe Long and Short of it: A Look at Long-Term vs. Short-Term Mortgages
Interest rates have nowhere to go but up. No doubt you’ve heard this line if you’ve bought a home or had to renew your mortgage at some point in the past decade, followed by an eager banker or mortgage broker urging you to “lock-in” now. Most homeowners in Canada prefer fixed rate terms for predictability and…
Read MoreFrom The Boomer & Echo Mailbag: My Mortgage Is Almost Paid Off. Now What?
Q. I will be making my final mortgage payment in a couple of months. What happens next? Congratulations for achieving this big financial milestone. You’re about to own your home free and clear of any debt and, with the increase in your cash flow, you will improve your financial condition. Once that final mortgage payment…
Read MoreCool It. The Feds Aren’t Killing The Housing Market
Allow me to riff on the housing market and how recent changes to mortgage rules will affect Canadian homebuyers. To recap, the feds stepped in and introduced a mortgage rate stress test for fixed term mortgages of five years or more. The stress test, which already existed for variable and 1-4 year fixed terms, stated…
Read MoreWhy I Chose A 2-Year Fixed Rate Mortgage
Our mortgage came up for renewal this month and, even though interest rates remain historically low, I knew we’d have to renew at a higher rate than our current 1.90 percent variable rate mortgage. Last week I met with an advisor at TD, where our mortgage is held, to see what options were available. I…
Read MoreFinancial Planning For Couples: Buying A Home
Buying a home will probably be the most expensive one-time purchase you’ll ever make. It can also be one of your best investments (housing values have historically increased over the long run) as long as you choose wisely and pick a house you can afford. Saving for a down payment How much money do you…
Read MorePriced Out: Why It’s Crazy To Buy A Home In Vancouver Or Toronto
When central and southern Alberta experienced catastrophic flooding in June 2013 there were 32 states of emergency declared and over 100,000 people displaced throughout the region. Reports of price gouging at various retailers surfaced on social media; one story in particular claimed that an unscrupulous Calgary retailer was selling individual bags of ice for $20. Given the urgency…
Read MoreFrom The Boomer & Echo Mailbag: Renovating For Resale
From the questions we are receiving, it seems that some of our readers are on the move. They want to get the best bang for their buck when selling their residences. Q. Which home improvements have the highest return on resale value? Q. We are in the process of selling our “starter” house and moving…
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