6
votes
2answers
449 views

Should I remodel or buy a bigger house?

My husband and I have two children under 2 years old and have outgrown our current 1400 square foot home. My husband and I both work from home, and we have a day nanny who comes and helps with the ...
2
votes
1answer
67 views

What would happen if I were to lose all equity in my condo when it's time to renew the mortgage?

I've been reading Condo Bible and it has the following passage: A solid down payment of at least 25 percent will act as a buffer for you at mortgage-renewal time should interest rates slowdown. If ...
-3
votes
1answer
43 views

What is the use of mortgage insurance premium paid to CMHC

When I bought my condo, because I could only put down 10%, so I had to pay CMHC (Canada Mortgage Housing Corporation) insurance premium (about 12 000 dollars I believe but I could be completely wrong ...
2
votes
1answer
56 views

How a mortgage backed security fluctuates

If I buy a mortgage backed security, what will happen to my investment if: The person that took out the mortgage defaults The person makes a prepayment The person refinances The bank that ...
3
votes
1answer
113 views

What is a cash back mortgage and should I consider using one?

In speaking with a mortgage adviser recently, I found out about cash back mortgages. I was wondering if someone here knows about this and could tell me if they are a good idea? To give you some ...
2
votes
1answer
86 views

Transfer mortgage between two different properties without penalties

Can a mortgage be transferred to purchase two different properties without penalties? I live in BC Canada.
-2
votes
2answers
227 views

Why are mortgage interest and taxes considered tax deductible?

I have trouble understanding the rationale behind why certain things are tax deductible while other things are not. For example, I understand that RRSP contributions are tax deductible because I am ...
5
votes
1answer
113 views

Loan from Canada to UK

I live in Canada. My brother in the U.K. is thinking of purchasing a house with his wife. They are both teachers and careful with their money but don't yet have money for a down-payment. I am ...
8
votes
1answer
286 views

Pay off debt with RRSPs, or refinance and roll into Mortgage?

A few years of a combination of under-employment and trying to keep afloat a floundering business has left me (us) with 50k debt on a line of credit and a credit card. We are getting 5k back from ...
5
votes
2answers
247 views

Cash out retirement account or sell and downsize the house to pay off line of credit?

I am in my mid 40's and I have an outstanding secured line of credit with a large balance that I want to clear. I can only come up with 2 scenarios to clear this amount based on my home equity and ...
1
vote
4answers
299 views

Whether to prepay mortgage or invest in stocks

If at the end of the year, I have 10k in hand that I want to save/invest and these are my options: 1.Prepay into mortgage. Rate is 2.1% 2.Invest in stocks and I know I can get at least 7 % return. ...
15
votes
6answers
653 views

What are the advantages of paying off a mortgage quickly?

What are the advantages of paying off the mortgage quickly?? Sure, not paying interest and truly owning your house is great, but then the money is tied in a fixed asset, and if you want to get at ...
7
votes
3answers
166 views

Helping family with house payments

My wifes sister and husband can no longer meet the payments on their house. He can no longer work and she is working and earning enough to cover a little more than half the monthly payments. Lets ...
9
votes
3answers
2k views

First time home hunters. Pay debt or save for down payment

tl;dr We want to buy a house. We've done all the pro's and con's of home ownership. We have 1/2 a down payment and some highish loan payments Would it be wiser to pay down the loans and go ...
9
votes
3answers
493 views

Should we try to make additional mortgage payments if we want to sell the home after 5 yrs?

In this question: Why making additional payment to mortgage counts towards principal? Why does it matter? it is explained why making additional payments towards your mortgage will bring down the total ...
5
votes
2answers
387 views

Should my husband & I be saving money?

My husband and I are looking to buy a new house with a mortgage of about 400K-500K and a downpayment of 200K-300K (max value of home:700k). (We currently own a home that we purchased for 300K, and ...
6
votes
3answers
694 views

Bigger mortgage downpayment vs. paying extra on the first regular payment?

Assuming there is no fees on paying extra $10k at the time of the first scheduled mortgage payment, what would be better - to put this $10k towards a downpayment or make bigger regular payment? ...
2
votes
1answer
647 views

Are there any disadvantages of Progress Draw Mortgage?

I am thinking about getting a Progress Draw Mortgage on a home currently being built, and the builder is willing to cover all the interest until the possession date. Are there any disadvantages of ...
5
votes
2answers
144 views

Under which conditions does it make sense for a Canadian investor to put their mortgage in their RRSP?

Canada allows investors to use their retirement fundings (RRSPs) as part of a loan to themselves, which can fund the buying of a house. When does it make sense to take advantage of this?
6
votes
4answers
218 views

High mortgage rate and low home prices VS low mortgage and high prices

Currently in Canada we have low mortgage rates and high home prices. I get the vibe from reading different articles that people actually want mortgage rates to go up which would lower the home prices. ...
8
votes
4answers
352 views

Can I take advantage of lower interest rates while I'm stuck in a fixed-rate mortgage?

Interest rates across Canada are gradually creeping up, but they're still incredibly low compared to when I started my 5.79% fixed rate mortgage a few years ago. Several lenders still seem to be ...
0
votes
2answers
100 views

What is the difference in payments and ratios between High-ratio and Conventional mortgages?

On bank's site it says: Conventional mortgage: means your downpayment is at least 20% of the purchase price. High-ratio mortgage: means your downpayment is less than 20% of the purchase ...
1
vote
1answer
304 views

Home office deduction with a line of credit mortgage (e.g. Manulife One)? [Canada]

I've been looking at mortgage products such as Manulife One - which work like a line of credit based on the equity in your home. The monthly payment is the interest on the amount left owing every ...
4
votes
1answer
135 views

With interest rates beginning to ascend, is it better to lock in a mortgage at fixed rate or opt for variable rate?

With the interest rates beginning to ascend, is it better to lock the house mortgage at a fixed rate or to opt for a variable rate mortgage? Thanks in advance for the sage advice that is shared here.
2
votes
1answer
139 views

What impact does the new mortgage rules have on CMHC policies? [Canada]

With reference to this question, how does this affect the Canadian Home and Mortgage Corporation (CMHC)? This organization made it possible to get a new home with as little as 5% downpayment, ...
2
votes
1answer
457 views

Canada: New mortgage qualification rules, 2010: Why, what, & when in effect?

Earlier today, the Canadian federal Finance Minister Jim Flaherty announced new mortgage qualification rules for Canada. Why were new rules introduced? What are the new rules being introduced, vs. ...
5
votes
2answers
326 views

What is a good place to park a Christmas bonus? Pay down the mortgage, TFSA or RRSP?

Many companies in Canada tend to pay out bonuses around Christmas time. If one is fortunate enough to get one this year what is the best strategy for the bonus? TFSA's have a limit of $5000 yearly. ...