Why Chasing the Lowest Mortgage Rate Isn’t Always the Best Strategy When most people think about getting a mortgage, their first instinct is to chase the lowest interest rate they can find. It is understandable. Rates are highlighted in ads, shared in headlines, and easy to compare at a glance. But here is the truth […]
Not Always About Interest Rates
Understanding the Smith Manoeuvre: Turning Your Mortgage into a Tax Advantage
Buying a home is one of the biggest financial steps many Canadians take. Mortgages are usually paid down with after‑tax dollars, while investments earn interest that you can deduct on your tax return—if structured correctly. Enter the Smith Manoeuvre, a strategy that can help you convert part of your mortgage into tax‑deductible investment debt. Here’s […]
Bona-Fide Sales Only Clauses
Imagine spending hours of your life to: I’ve seen this happen on more than one occasion and it’s not pretty. His lawyer found out he had a “bona-fide sale” clause in his mortgage contract. A bona-fide sale clause is a fancy way of saying that you can’t leave your lender until the term is up, […]
9 Reasons Why People Break Their Mortgages
Did you know that 60 per cent of people break their mortgage before their mortgage term matures? Most homeowners are blissfully unaware that when you break your mortgage with your lender, you will incur penalties and those penalties can be painfully expensive. Many homeowners are so focused on the rate that they are ignorant about […]
What The Latest CMHC Increases Have Done
CMHC increased the default insurance premiums on Canadian borrowers as of March 17, 2017. Effectively, anyone purchasing a home with less than 20% down will fork over up to 1.00%-point more in fees. If you’re down payment is: As an example, if you’re putting down 5% and paying $500,000 for a home (which is below average, believe it or not), […]