Hot answers tagged

72

Risk. The bank will probably get more over time, as long as the borrower continues to make payments. If they don't, the bank may lose money (especially if they end up having to foreclose and can't sell the house for enough to cover the loan balance). If you act as the lender, you take on this risk. You could just take the $500,000 up front from the sale and ...


33

This is known as a "vendor take back" mortgage. It's common with empty land and with vacation properties, which Canadian banks often prefer not to offer mortgages for, or to charge quite a bit more. It's also likely in those cases that the property is subject to capital gains (not being a primary residence) so taking the money a bit at a time can lower the ...


21

Ask your tenant what he wants to get out of this arrangement - NOT the legalese - but: What end result the tenant wants in plain English (it sounds like free money). Why does the tenant think he should/must get it? - Note: answering my mum said it was due is not your problem. Then decide what you should do. Things not to do: Engage with his mother - you ...


16

What does he mean exactly? How the heck does it make sense for a landlord to "buy" a "lease" from his own tenant? It sounds like they're hoping you might pay them to vacate/end their lease. It could make sense if you were considering selling the property. It could also make sense if they were about to stop paying rent because they think they cannot be ...


8

Let's say that the lease has a year left to run at $100 per month, and he offers to vacate for $500. Let's also say that you could lease it right now for a year at $200 per month if it were not obligated by the current lease. In that case, it could make financial sense to take that offer.


5

There is a process in rental property colloquially called "cash for keys" where the landlord pays a tenant to terminate a lease. Usually it comes up as a kind-of win-win for both sides where the tenant has lost their income or the landlord wants them out with less fuss, so instead of a drawn out eviction process with no guarantee of getting paid back rent,...


4

Foreign tax credit Line 40500. You may be able to claim this credit for foreign income or profit taxes you paid on income you received from outside Canada and reported on your Canadian tax return. Tax treaties with other countries may affect whether you are eligible for this credit. See 1 but also look at your T slips for "foreign tax paid" The tax ...


3

I have a bank account in Canada The top 5 largest banks in Canada all offers a Cheque Deposit through taking photo of the physical cheque via their Mobile App. https://www.td.com/ca/en/personal-banking/how-to/td-app/deposit-cheque/ https://www.rbcroyalbank.com/ways-to-bank/mobile/rbc-mobile-app/index.html https://www.scotiabank.com/ca/en/personal/ways-...


2

A lease is generally a right to occupy some premises for a fixed period. If the current tenant wants to move out, then they can sell the lease on to someone else, who then has the right to occupy for the remainder of the lease. Provided that the rental being paid under the lease is less than the price of simply renting the equivalent building, the lease is ...


2

I have some issues about the short selling article in your link. A very small potatoes issue is that the author is doing a synthetic straddle by buying 100 calls to hedge 5,000 short shares. It might not make much of a difference on the slippage (100 contracts and 5,000 shares versus only 100 contracts) but call it what it is. It's a long straddle not ...


2

About the only drawback is that you can't choose where the money goes. My son in law has only one bank account; he has auto deposit on. My daughter has several: one with the bank that holds their mortgage, one with another bank that is her general purpose operating account, and of course a savings account. She might want to deposit an e-transfer into any one ...


2

Letting a buyer hold the value and make payments is not a hedging of the value. Over long periods of time, possible rising inflation could make the loan payments worthless. A financer, without hedging or long-term planning, should make loans with adjustable rates. But then a buyer shouldn't accept a long-term adjustable rate loan unless they have hedging ...


2

Statistics. You are focusing on the expected value when the much more relevant issue is the variance. A bank doesn't make money by making one mortgage, it makes money by making thousands or millions of mortgages. The more mortgages you have, the lower the variance and the more certain you are that your observed result will be very close to the calculated ...


1

The answer is in the income tax act. Using the Table of Contents makes the analysis simpler. Let's take the example of a consumer purchase refund. We can probably safely say that It is not income from Office or employment It is not income from a Business or property It is not related to capital gains or losses The only source of doubt would probably be "...


1

You're describing what's known as a land contract Here's an article from Nolo Press detailing this type of financing, with some internal links for more info. It lists specific benefits and downsides for the buyer and seller. I'm not sure if it exists in Canada, but it's quite common in the US.


1

Holding U.S. stocks in a TFSA does not avoid the U.S. withholding tax on dividends, as there is no tax treaty covering investments in a TFSA, while there is a treaty covering investments held in an RRSP. Dividends are primarily why holding U.S. stocks in an RRSP can be preferable to holding the same stocks in a TFSA. If the stock pays no dividend, there is ...


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