February 25, 2018

Blog

Advantages & Disadvantages of HELOC

Feb 20, 2018

What is a HELOC?  A HELOC is a ‘Home Equity Line of Credit”.  Often consumers think there is no mortgage registered against their home but in fact there is.  A collateral mortgage/charge is registered for the amount that you are authorized to borrow as security in support of the loan amount. A HELOC is typically requested when you want access to short term financing, for example, doing renovations, debt consolidation or investment and know there will be monies coming in through commissions, sale of stocks, inheritance, etc. that will be used to pay down the loan amount. The advantage of…

New To Canada Mortgage Rules

Feb 5, 2018

I have had a number of enquires recently on whether the New To Canada Program requirements have changed.  Individuals that have immigrated or relocated to Canada within the last 5 years can purchase a property with as little as 5% down payment.  Here is the criteria in order to qualify for a mortgage: Purchase price must be less than $1,000,000 Under $500,000 you can purchase with 5% down payment If the property is between $500,000 and under $1,000,000, you can purchase with 5% on the first $500,000 and 10% on the portion over $500,000 Maximum 2 units with 1 unit…

Paying Down Debt vs RRSP Investment?

Jan 30, 2018

It has always been a dilemma of whether you should use any excess cash to contribute to your RRSP or pay down your mortgage.  The current economic equation has recently tilted in favour of paying down debts vs. building up assets but only for those people with a low tolerance for any investment risk.  The current interest earned from GICs, term deposits and government bonds remains pathetically low.  At current deposit rates of around 1%, it takes 72 years to double your retirement nest egg if you only earn 1% per annum. Here is how to think about the trade off between paying…